Some possible factors for SHJ to continue price gains during the...

Some possible factors for SHJ to continue price gains during the next year:

1) SHJ net assets as at 31/12/17 is $209m while it currently has a market capital of approx. $170m ($39m difference). If this gap alone were to close to zero that would be approx. 22% price gain. A few things to point out is that the market can often be irrational and underprice things for too long and vice versa. Most other companies are valued in excess of asset value so gain could be > 22%

2) Gross Operating Cash Flow (GCOF) of $6.49 m beats previous best and continues upward trajectory. $.4m, $3.3m, #3.6m, $5.2m and now $6.49m.

Traditionally 2nd half of year is where more GCOF is made $10.1, $9.7, $15.2, $14.0. Of course, I'd only be guessing what they make in the 2nd half, but if I use the mean average of previous years it would be $12.25m (which is conservative compared to the past two 2nd half years) $6.49 + $12.25 = $18.74m GCOF

3) $7.83m NPAT for 1/2 year is a reasonable return for a company with a market capital of $170m. Even if we only manage to repeat the first half again then that would be $7.83 x 2 = $15.66m profit. I expect it to do better. However, both SGH and SHJ shares have performed poorly in the past few years, so many investors who have had their fingers burnt won't be game to touch again.

4) We are currently out of the top 300 ASX, but if we have some share appreciation we might be able to get back in, which would result in index funds having to buy back in, increasing demand for SHJ shares and therefore the price.

5) I'd have to say that I'm optimistic that if the 2nd half continues as it has in the past that a substantial upward re-rating may occur (fingers crossed).