seekrit squirrel

Finance => Shares => Topic started by: galumay on March 11, 2019, 08:52:23 AM

Title: SRG
Post by: galumay on March 11, 2019, 08:52:23 AM
Originally bought at 67c when they were GCS, merged with SRG and have been as high as 90c, market didnt like merger, contracts were delayed and price was hammered, topped up at 37c, seems to be mispriced to me with liklihood of a much improved year going forward. For that to happen though it will need to pick up a lot of extra revenue in the 2nd half, operating cash flow is now negative due to costs remaining static as revenue has been deferred due to delays in contracts. NTA is above the share price so there is that, they will need to hit mid to high point of EBIT guidance to deliver any real confidence in management. I dislike intensley the focus on EBIT & EBITDA in the HY report, in fact earnings are not mentioned at all, that scares me.

Funny to read the HY report this year (2020) Nothing has changed! Still banging on about EBIT & EBITDA - no mention of actual earnings!