Not bad. The growth for SKF has been very consistent for a few quarters in all the key metrics. Clients, users, live sites, revenue, receipts all moving in the right direction.
The problem is while it has been consistent, it has also been slow. Plus the growth has also resulted in increased costs, which is fine, but it means SKF will be coming back to the market soon enough for another injection of cash.
I said it before the last quarterly and I think it is still true. Given the costs they are now experiencing to drive US and Euro growth, they need some tangible expansion announcements soon. The Australian business isn't growing fast enough to support the expansion plans, so the best SKF can hope for is an announcement that sparks the share price, then to raise capital at a higher price to continue to drive international expansion.
I would be very interested to see where the breakeven point is for the Aus operations. I think it would paint a pretty decent picture for SKF, they have started to gain a really strong foothold domestically.
I still watch with interest and wouldn't be opposed to jumping back in.
SKF Price at posting:
11.0¢ Sentiment: Hold Disclosure: Not Held
