Thanks for taking the time, Orwell. Always interesting to see the other side. This is probably one of those times where the fundamentals of the company will almost certainly have to take over and the chart to follow. Based on the current yield on offer, if it were to fall any further, i don't believe the market would allow such an income generating investment to exist for long, before stepping-in to remove the oversight; almost like arbitrage moments between companies with ASX and ADR listings. Note that two professional funds have already accumulated SH positions since it listed and a director has also bought a couple hundred $k. I'm a big believer in agency theory, so seeing that increases my confidence.
The caveat to the above is that while I'm a fundamental investor and am prepared to enjoy a circa 10% yield, while i wait for the market to become "rational", that can only hold if the business is sound. Is Shriro Group sound? They've not only advised the market that earnings will meet prospectus guidance but likely beat it by ~10%. Mgmt have a long track record of making similar companies successful.
I'm not sure if you can paint some parallels with the recent FID chart. Just before it broke and put on as much as 40% plus paid a dividend, the chart seemed moribund and it seemed a perpetual seller was forever offloading before the price could gain any momentum. Once the overhang of the seller disappeared, it was free to push ahead strongly. Does it look similar at all to you Orwell?
Oh, in terms of what they do, yep Casio is still kicking around, so cameras, POS systems etc but they do a lot of higher end kitchens too, Blanco and they're about to launch the Neil Perry kitchen range. It's actually a really good business, although fairly bland (as many good businesses are):
http://www.shriro.com.au
Anyway, thanks again. I'm not in yet but i'm extremely temepted to take an initial position. I guess the risk is it could re-test those lows but ideally, it's going to be a multi-year hold for me, so the main concern is buying as many shares as i can, before it jets.
(20min delay)
