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SGM - Sims Limited

Discussion in 'Stocks Q-Z' started by Sultan of Swing, Sep 12, 2006.

  1. luutzu

    luutzu

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    I've been waiting for this one.

    Haven't dive into its books yet in case I get tempted and the market pulls down my pants moment I do.

    could be interesting this one.
     
  2. Miner

    Miner

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    Good point .
    If I may suggest that seeing the business model of BSL and S 32 , they are not on negative side with SIM performance. In fact, SIM collects scrap from companies like BSL. IF they are not getting scrap at good value also means when BSL and alike steel makers look for scrap they would get cheaper. China demand has shrunk and hence probably demand for scraps for electrical furnaces.
    S32 is altogether a different company producing aluminium, zinc, coal , manganese etc - not related to SGM's business (I think so).
    Good luck
     
  3. tinhat

    tinhat Pocket Calculator Operator

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    Thanks for the heads up. It's now on the watch list.
     
  4. sptrawler

    sptrawler

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    Winding up the super account, sounds severe. Having said that, I am certainly doing the sums, if there is no franking credits no point in risking capital.
     
  5. Miner

    Miner

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    Extracted report from Motley Fool quoting UBS today. I request the readers also to refer our one of the ASF's astute contributors SC's posting #37 of Feb 17, 2017 and Greg's commentary # 38 on yesterday as well. Basically SGM is currently not inspiring for many of us.
    "Sims Metal Management Ltd (ASX: SGM)

    Analysts at UBS have downgraded this scrap metal company’s shares to a sell rating from neutral and slashed the price target on them from $12.50 to $8.50 following yesterday profit downgrade. According to the note, the broker has reduced its price target after cutting its forecasts to account for the tough trading conditions Sims Metal Management is facing. And with global scrap metal markets facing increasing disruption, the broker remains cautious on the company’s prospects in the medium term."
     
  6. Trav.

    Trav.

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    SGM having a nice little run over the past couple of months, one for the watchlist

    upload_2019-7-26_6-44-55.png
     
    Miner likes this.
  7. bigdog

    bigdog Retired

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    upload_2019-9-16_8-34-29.png

    ASX announcment
    16/09/2019 8:20:47 AM 1H FY20 Trading Update

    Sims Metal Management Limited (the "Company") today announced that the recent and significant falls in ferrous and non-ferrous prices will negatively impact 1H FY20 and the result will be materially lower than 1H FY19.

    upload_2019-9-16_8-37-46.png

    448
     
    sptrawler likes this.
  8. rederob

    rederob

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    Following on from today's announcement I reckon UBS made a reasonable call, albeit perhaps a bit too negative given our low interest environment and the returns that SGM will offer.
    My $9.30 bid to add more SGM just over a month ago got purged, but I am in no hurry to buy again in the present environment and see under $9/share a reasonable re-entry point.
     
    So_Cynical likes this.
  9. So_Cynical

    So_Cynical The Contrarian Averager

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    Under $9 would certainly get my attention, reasonable probability of it getting there with all the global goings on.
     
  10. sptrawler

    sptrawler

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  11. So_Cynical

    So_Cynical The Contrarian Averager

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    sptrawler likes this.
  12. rederob

    rederob

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    Thanks guys.
    Very interesting!
    Might see what SGM report in the next 6 months before dangling any more toes in the water.
     
  13. rederob

    rederob

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    Smashed down in early trade today, with a less than reasonable outlook.
    I suspect that very few will be investing in SGM until they announce a clear turnaround some time next year.
    The only positive is that they did expect a poor first half, but maybe punters thought it would be better than it was.
    This is not a "bad" company, but they are out of "cycle" and suffering as a result.
    I have bought in and out of SGM over a very long while and will do so again when the "cycle" turns again in their favour.
     
    Knobby22 and sptrawler like this.
  14. sptrawler

    sptrawler

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    Investors will certainly get scared with that report:
    Sims Metal dramatic update
    By Darren Gray


    ASX-listed metals recycler Sims Metal Management will swing to a first half loss of $20 million to $30 million, the company has warned, driven by a crash in the price of scrap metal. The company forecasts a full year underlying EBIT (earnings before interest and tax) profit of $20 million to $50 million for 2019-20. This would be a 90 per cent decrease on 2018-19 underlying EBIT of $230.3 million.

    Sims issued a profit warning in a statement to the ASX on Monday morning, in which it said first half trading conditions were “materially worse” than the first half of last year.

    Chief executive Alistair Field said the company had unsold inventory leading into September, which was obtained at purchase prices that reflected the stronger market conditions prevalent in June-August.

    “This inventory will be sold at a loss and will impact our results through to December,” he said.

    Down nearly 10% as we speak, I guess the China issue is still causing problems?
     
  15. System

    System Administrator

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    On January 20th, 2020, Sims Metal Management Limited changed its name to Sims Limited.
     
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