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SRG - SRG Global

Discussion in 'Stocks Q-Z' started by galumay, Apr 10, 2018.

sentifi.com

Aussie Stock Forum Sentifi Top themes and market attention on:

  1. galumay

    galumay learner

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    I cant see a thread for GCS so I have opened one, I have been following and researching GCS for about 6 months and finally took a position today at 67c, i have an IV range for it of 80c-$1 and I think its pretty compelling buying below 70c.

    The company has reduced its debt to insignificant levels, divested itself of the equipment hire segment that was break even at best, and added an interest in Gallery Facades, the cladding services business to its portfolio.
     
  2. Mr Bear

    Mr Bear Businesses don’t change often, perception does..

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    I bought shares at 85c, it’s worth at least $2. It’s been trading poorly but not sure why, good yield, low pe, 10% revenue growth and solid cash flow.. happy to hold for the moment, not a strong 1H but believe 2H will be much better.
     
  3. galumay

    galumay learner

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    Interesting merger announced today, maybe some arbitrage opportunity depending how prices settle out. Seems to me its more favourable to SRG shareholders to me, but SRG fell more than GCS!!
     
  4. System

    System Administrator

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    On December 3rd, 2018, Global Construction Services Limited (GCS) changed its name and ASX code to SRG Global Limited (SRG).
     
  5. rcm617

    rcm617

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    Dropped about 20% after a poor HY19 report and FY19 forecast. According to management it is primarily due to timing with cost incurred this year and revenue being delayed. They have had some good project wins lately and should get some more work with problems with cladding in high rises.
     
  6. Pollocks

    Pollocks

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    My pick For the June Stock Picking Competition. New contract wins coming in with hopefully more to follow. The bottom may be in.
     
    peter2 likes this.
  7. galumay

    galumay learner

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    One of the more undervalued businesses on the ASX, the market misunderstood the merger, and its taken a couple of quarters to flow through to the bottom line. Most of the contracts were already known, but the market has reacted as if they were all new.
     
  8. peter2

    peter2

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    SRG appeared in my BO scans this afternoon for obvious reasons. There's a weekly HL, which is a requirement for me for a reversal opportunity after such a strong down trend.

    srg3005.PNG
     
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  9. jbocker

    jbocker

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    SRG Global have made 4 separate announcements over the last couple of weeks of 4 new contracts totalling excess of 157M. This follows a few announcements of new contracts in early April. I thought this looks promising maybe time to buy a few and keep for the longer term.
     
  10. galumay

    galumay learner

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    I honestly think SRG is one of the more undervalued businesses on the ASX, see my post above. I have added to my position in the mid 30's.
     
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  11. jbocker

    jbocker

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    I bought a few too low 40s. Now waiting patiently.
     
  12. galumay

    galumay learner

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    I think the inflection point will likely be the full year results later this year, and i suspect patience will be rewarded!
     
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  13. verce

    verce

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    Market Cap ~$180 million is a bit too pricey for me!

    Good luck.
     
  14. galumay

    galumay learner

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    Are you just trolling? Or do you really have no idea what market cap is? I think I explained it to you once before, it is simply the number of shares on issue multiplied by the current price, its got no specific connection to value. Its not a metric for comparing different businesses.
     
  15. verce

    verce

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    A high market cap means a business is expensive, a low market cap means it is cheap. It has everything to do with value.
     
  16. galumay

    galumay learner

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    Ok, time to apply the ignore button, someome who has so little idea what they are talking about is definitely better ignored! The derp is deep.
     
  17. willoneau

    willoneau

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    are you saying you think the SP is too high?
     
  18. Smurf1976

    Smurf1976

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    Compare BHP with some much smaller mining company.

    Same industry but one's doing it on a far larger scale than the other. No surprise then to find that BHP's market cap is far higher than the other company but that says nothing at all about valuation relative to their actual business and what return you'd likely obtain by investing.
     
  19. jbocker

    jbocker

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  20. rcm617

    rcm617

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    Seems to be finally heading back up after announcing a string of contracts in the last few weeks. Hopefully heads up to its price pre the HY results. My pick for the July Stock picking comp.
     
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