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SGM - Sims Metal Management

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

  1. Sultan of Swing

    Sultan of Swing

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    Hi all

    A Lurker and first time poster here. I've found threads on most of the companies I'm interested in but haven't found anything on SGM.

    Does anyone have any interest or comments to make on them?

    I've been holding some for a little over 12 months and looking at the forecast earnings on Commsec, they don't appear to have a lot of growth left in them.

    Any opinions and insights are most welcome.

    Cheers
    SOS
     
  2. Julia

    Julia In Memoriam

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    Hello SOS

    I haven't looked at SGM since selling it at the beginning of the year.
    I held it for about 18 months and exited with about 55% profit plus the excellent dividend return.

    Just now taking a look at it again, it looks very healthy. However, I've no idea what the big picture is like for steel and recycling. The rising SP indicates it must be OK.

    Are you buying this? What background do you know about this sector of the market? I might get interested in jumping back on. Thanks for bringing it up.

    Julia
     
  3. Sultan of Swing

    Sultan of Swing

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    Thanks for your reply Julia

    I haven't bought any since I initially bought some and I don't intend buying anymore at this point. This is partially because it's a larger portion of my portfolio and partially because I don't fully understand the fundamentals.

    The predicted lack of growth is a concern to me although I realise it's only the opinion of a few analysts. Having said that, they more than likely know a lot more than I do.

    I know virtually nothing about the sector, or any sector for that matter. This is why I lurk and don't post :rolleyes: :p: . I'm here to learn.

    Cheers
    SOS
     
  4. 3 veiws of a secret

    3 veiws of a secret 3 veiws of a secret

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    I was very tempted to buy 3000 shares about 3 months ago ( I think) Only because I thought Sims might try a takeover of SSX or Bluescope Steel. But what got me interested was that SGM has exposure in the USA. The price had stooped to $13.25 or $14.25. Huntley's seemed excited by the share. Alas I bought into RIN !!!!! drastic error at present!
    But yes USA is the rough diamond I t'ink.
     
  5. finnsk

    finnsk

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    SGM is flying last few days is at $23.36 or up 5.56% today are you still in Sultan of Swing?
     
  6. PhoenixXx

    PhoenixXx

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    No one hardly touched or interested with SGM.
    Just completed Acquisition of E-Recycling Assets of Noranda recently and the SP went skyrocket ever since.
    Any views anyone?
     
  7. ozambersand

    ozambersand

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    I held Sims for a while but sold a couple of months ago and would like to get some again.

    I am impressed by what they are doing. They seem to be gradually tying up the recycling markets in Europe and the US where it is a bigger concern than it is here.

    One thing to be wary of at the moment is that when they bought Hugo Nue a while ago, those who held Hugo Nue shares had an ecsrow on selling them until the end of April.

    They got a "speeding ticket" from the ASX back in January when the share priced jumped back then as you can see from this cut and paste of the announcement of 30/1/07

    sgm.jpg

    It will be in these holders of Hugo Nue's interest if the share price is high while they sell out (presumably gradually so as not to spook the market). I gather some American institutional investors may not be keen on holding shares in a non-American company (although it is dual listed from memory).

    Whether the price has been manipulated this high in order for this to happen I cannot comment.

    It is a good company and may have been undervalued when it was selling at $19.65 in January (when I bought some :) . Now that it has topped the $26 mark...... :confused:

    If it does come down again I will buy back in for the long haul and not sell this time!! :banghead:
     
  8. ozambersand

    ozambersand

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    Anyone got any ideas as to why Sims shares suddenly dropped 7% at one time today? This was basically against market trend and I haven't been able to find any news items.
    It wasn't Hugo Nue getting out as they had already announced they did that a couple of months ago.
    It's creating a good buying opportunity at any rate. :rolleyes:
     
  9. rederob

    rederob

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    I think it may be more to do with steel prices falling.
    SMG's biggest revenue stream is in steel recycling, I believe.
    So its margins will be declining a fair bit, and for a fair while to come.
    A good company, and one worth watching for the inevitable bounce.
     
  10. Nicks

    Nicks

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    So the price of Lead went up overnight amid significant shortages, SGM share price is down.... good buy then thanks to external unrelated factors?
     
  11. PhoenixXx

    PhoenixXx

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    I've been following this share for few months and noticed some strange movements in sp.
    Firstly, every 30 minutes or so, there would be a quantity of 119 shares traded. And surprisingly, 'sometimes' the sp would lead to where the 119 shares went, ie the sp would go up if 119 shares bought from the market, and vice versa.
    Secondly, seems like 'some' orders (buys or sells) are generated electronically to a certaint extent.
    Lastly, the volatility. Low quantity of shares traded could even lead the sp went skyrocket.

    Any opinion anybody?
     
  12. Nicks

    Nicks

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    Ok so there is a trading halt and I have no idea why. Can someone shed some light onto this? any suspected developments or anything on the cards that they know of or heard? +ve or -ve?
     
  13. Sultan of Swing

    Sultan of Swing

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    Hi finnsk

    Sorry for the delayed response. I just realised I hadn't subscribed to this thread and went looking for it.

    Yes, I'm still holding. It's been nice to see the steady rise, I'm up just over 100% over 2 years.
     
  14. Sultan of Swing

    Sultan of Swing

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    I'd be interested to know why they're in a trading halt too. Anyone have any insight?? :confused:

    Cheers
     
  15. doogie_goes_off

    doogie_goes_off disbelieve if you can

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    Sims have been generating plenty of cash, i'd have to guess it's going to be an aquisition of some sort, probably have run out of room for organic growth.
     
  16. Nicks

    Nicks

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    Funny how the Financial Review today even got it wrong. I guess sometimes information doesnt leak.
    Anyway still great for the company and im now going to hold it as a long term investment. Should get good SP growth and dividends now. High market share and high synergies from the merger = all good.
     
  17. GreatPig

    GreatPig Pigs In Space

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    Nice breakout today on decent volume. The last few days have been pushing up from the longer term trend line (which goes back to the start of 2001).

    Good to see something looking positive at the moment.

    GP
     

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  18. Julia

    Julia In Memoriam

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    It has been suggested that SGM is currently a take over target.
    I haven't heard anything about this.
    Does anyone know if this is correct?
    Any holders? It's looking very good.
     
  19. Tysonboss1

    Tysonboss1

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    Sims has been trending down for a while now,

    I am starting to think that it might be a good buy at around $30, as long as the price of metals remains high I think that they should be able to keep growing Volumes through there scrap metal yards and maintain margins.

    It's trading on a PE of 13 at the moment which I think is good value for this company, trading in metals is also a natural inflation hedge also.
     
  20. Tysonboss1

    Tysonboss1

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    Sims has been buying up metal recyclers in the USA for a while now and when they make the annoucement it is always some thing along the lines of this;

    Sims Group Limited (Sims) announced today it has acquired the assets of Weinert Recycling, a ferrous and non ferrous scrap metal recycler with operations in Middletown and Liberty, New York. The financial terms of the deal, including price, were not disclosed, however the cost is not material to Sims.

    What I am wondering is, what exactly do they mean by that last bit that the cost is not material to them.
     
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