SIV - SIV Capital

[silence]

Well I've taken the plunge and decided to get some silver chef convertible notes (10% p.a.)

The company looks quite solid in terms of profits and low debt based on the annual report.

(Is now going public, from private company)

Has anyone else done any research into the company (or even heard of it)?

I'm thinking of just selling a day or two into trading if the price jumps enough.

 

[silence]

Re: SIV - Thoughts?

Well, looks like I should have got the shares instead - up 60% on the issue price so far...

 

[System]

Silver Chef Limited (SIV) provides equipment rental finance to the food service sector (restaurant and fast food), as well as investment in residential and commercial properties. SIV focuses on long term rentals of commercial equipment to small-to-medium enterprises. SIV has nation-wide operations in Australia through a Rent-Try-Buy Solution and operates under two brands: Silver Chef - hospitality assets; and GoGetta - broader commercial equipment.

http://www.silverchef.com.au

 

[catfish]

I thought I would bring up SIV as there has been no mention of the forum. SIV has been on my watch list for a while and is a great business in my opinion and seems cheap. Earnings guidance of 35c at the current share price puts it under a PE of 10 and a yield of around 6% ff. Management has used debt well in the past and is certainly not afraid of leverage. Founder and Chairman Allan English holds a large interest in the company as do most directors. Bad debts were below 1% due to risk management initiatives such as weekly payments made in advance, if the customer does not pay the good are simply returned. And also no customer represents over 1% of asset under management. I believe the company presents a good value proposition to customers in the industry, where there are huge start-up costs and no cash flow in the beginning, customers purchase the items once the business has proven successful. I would be interested if there are any holders out there with an opinion on the stock.

 

[silence]

I bought the convertible notes when the company first floated, but sold them off for a small profit. I kicked myself for not getting the actual shares though at $1!

I've been watching it too but haven't had the capital spare to put any into it, though I would like to.

 

[chops_a_must]

In at 6.50 today.

Breaking out of a pennant, after retracing from all time highs, and has gone on to set a new high again.

Great fundamentals: improving cash flow, eps, dividencs and low P/E.

And still has a decent yield.

After not dipping much at all after going ex-dividend a few days ago, it opened my eyes a bit. Obviously a bullish sign that the stock is so tightly held.

 

[chops_a_must]

Am I the only one in this?

Up over 7% on average volume.

Although that is because the sellers are not there.

A very nice breakout run, after clearing highs last week.

 

[Knobby22]

A great company. I was told to get on board but didn't. Sudden run today was a bit suss.

 

[galumay]

I had a look a while ago, the high debt level frightened me off.

 

[tinhat]

I was looking seriously at SIV then the Queensland floods hit a couple of years ago and it just fell off my watchlist because I invested in TGA instead. TGA seemed to have a stronger balance sheet. Ah well - well done to those that hopped on.

 

[chops_a_must]

I was looking seriously at SIV then the Queensland floods hit a couple of years ago and it just fell off my watchlist because I invested in TGA instead. TGA seemed to have a stronger balance sheet. Ah well - well done to those that hopped on.

They both look good.

I'd be surprised if tga doesn't follow.

 

[56gsa]

Last two days has posted record high on close... and intraday high of $8 yesterday ... volumes not above average although does seem to be tightly held as noted above

 

[McLovin]

I don't like this company. Lots of debt, basically a finance company, and they use their customer deposits to create basically fund the business. The problem is that someone like TGA's Thorn Equipment require no deposit. If they were to get into SIV's business, the cushy free finance (provided by their customers, who they really screw on price they run their business on would disappear. These guys are juicing their returns by using debt + wc leverage.

 

[chops_a_must]

Still going parabolic.

Where she stops, no-one knows...

 

[Ves]

Still going parabolic.

Where she stops, no-one knows...

A lot of the popular fundamental newsletters have been really talking this up over the last twelve months.

It will be a very, very good short for those disposed to that style at some point when the "hype" wears off and the trendies head for the bleachers again
.

 

[chops_a_must]

A lot of the popular fundamental newsletters have been really talking this up over the last twelve months.

It will be a very, very good short for those disposed to that style at some point when the "hype" wears off and the trendies head for the bleachers again
.

Yes.

I have my sell order in. It will be enough to free carry enough to make it worthwhile.

But it's not something I would want to be exposed to, especially when there is a much more fairly valued company in this space.

For the moment, it is a good trade.

 

[MaZed]

Is it too late to buy? Will it continue to grow?

 

[Intrinsic Value]

A lot of the popular fundamental newsletters have been really talking this up over the last twelve months.

It will be a very, very good short for those disposed to that style at some point when the "hype" wears off and the trendies head for the bleachers again
.

Another pump prime by RM me thinks. Of course if it crashes he will have already sold out.

 

[chops_a_must]

Out today.

The high volume sell off yesterday to me suggests there is supply above.

 

[robusta]

A lot of the popular fundamental newsletters have been really talking this up over the last twelve months.

It will be a very, very good short for those disposed to that style at some point when the "hype" wears off and the trendies head for the bleachers again
.

You were right Ves, the ride lasted until December then reality stepped in and the price fell from $8.00 to $5.00. Nice 10% spike yesterday when they announced profit will be at the upper end of guidance. I can never find a compelling enough reason to buy this one however.