Edison released a forecast today and suggests 2016 profits will be impacted also, assuming the banking covenants breach is not an issue. I'd be tempted to put some cash here perhaps closer to the next set of results but there are better growth shares in demand out there. Sometimes being a 'contrarian' and getting in ahead of the crowd after these negative events isn't the best use of making cash work. BVM, HAYT, DWHA, MBO to name but a few worthholding onto for slow and steady gains. Recovery stock play NBI
15 Jun '15
The market response to this was definitely an overreaction. Now is a good time to get in. But appreciate people are waiting for this one contract to complete. After that it should be business as usual for SSY. This will get back 90 SP but reckon it will take a year.
10 Jun '15
The company balance sheet places 'goodwill' at a value of £8.1m of the total £17.1m NC Asset but after the last trading update that is questionable! That said, £8.8m in property, cash of more than £5.5m supplementing cash-flow and an order book of £30m it could be worse. Loans similar to cash position and the covenant breach shouldn't impact too heavily. 25% wiped off the value attributed to higher costs for one project this year, looks like an overreaction
4 Jun '15
Banking covenants test in August, might they call in the loans? Surely not... interesting update, as someone has already noted ex-div is on the 18th June... This has bounced more than 50% since bottoming early this morning!
4 Jun '15
However this could be a good time to buy in, ex dividend date is this month (not yet passed) and the SP is at a low. Bad news priced in and potential to recover. this is usually a profitable business.
4 Jun '15
Very disappointing update
so I am out. Not very good PR to have a good update in March and a backflip in June. The fall is overdone and if its banking covenants hold then it may recover. But I have better homes for my money in companies which have more trustworthy management.
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