Anyone have any ideas what caused the sell off today? I know there are some that think the mining "boom" is over, I'm not one of them (not for the next 18 months anyway). We saw a retreat in PRG also, even though they said business is tough, but OK (pretty much the same story Mick had at the AGM and end of year results), so possibly a result of being in the ASX200 and all those 25 year old institutional traders sticking PRG and SKE in the same basket? Also noted that jobs ads were up, this normally has a direct and positive effect on the SKE SP (well has in the past).
Micks comments at the AGM were: • Workforce Services - trading conditions in the mining sector in the short term are likely to be volatile, and activity levels in manufacturing and related sectors, and in South Eastern Australia remain slow • Technical Professionals - continued demand for services, despite a slowdown in mining projects • Engineering & Marine - increased activity levels in oil & gas and in project and maintenance activity
Engineering and Maint comments were more up beat than at in EOY and this is the area where SKE's margins are highest and growth rate is highest.
I'm seeing the current SP as a buying opportunity, but maybe I'm missing something (company specific)?
SKE Price at posting:
$2.38 Sentiment: Buy Disclosure: Held