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SRG $1.15

Started doing some... 21/04/2017, 24205101

  1. Started doing some homework on SRG again last night.

    I had investigated this Co. a year or so back when in was ~0.95 cents/share and put in a buy order for a couple cents lower than the 'last' price. It never hit, which was obviously upsetting, cause then it rallied 50%.....anyway - that's what I get for being cheap/indecisive haha

    So I have only looked at 1H17 results so far and will look at FY16 on the weekend and then evaluate whether to buy, based on their valuation. But thought this info may be of interest to some, so will post.

    Based on the underlying PBIT of $4.7M which Management stated in the HY17 announcement, I calculated that underlying EPS = 4.6 cps (basic). Their GAAP basic/diluted EPS had a difference of 0.6cps (7.3cps : 6.7 cps)  - so I am assuming that underlying EPS = 4.0 cps (diluted).

    This is still a positive YOY trend with results, however it is nowhere near as strong, as the reported EPS of 7.3cps (basic) which was distorted by the property sale. This also makes their divvy payout ratio a lot higher, which probably is fine, given they have a strong balance sheet (net cash of $26M I seem to remember).

    I do like the diversification of this Co. and like the fact they're consider "experts" in several fields. However I want to be able to evaluate P/E based on valid #'s, not non-recurring #'s. The outlook Management gave in HY17 was simply along the lines of : we expect FY17 to be better than FY16 (revenue and I think income?). However this doesn't mean much to me, given they are using non-recurring #'s.

    I should know what I'm doing by start of Monday trading, wrt this Co. Obviously it's a buy at some point (as is any Co.), but what is that point? :)

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