Looking at company announcements of changes in significant owners versus volumes for SLR this year there is a pattern of an announcement following volume being > 5 million. We had that volume on Thursday so likely we will see an announcement early next week. My money is on VE - they seem to like to trade around this time of the month.
Strong agreement with Loki on the movement of cash being the key in the quarterly update. In FY 17 the company only reported a 2m profit, however this number doesn't tell the real story. If you take out non cash items, mainly depreciation and amortisation, the picture is much brighter. Cash levels went up over 20m during the financial year. For this trend to stop in Q1 2018 is disappointing.
Looking at the waterfall chart for opening to closing cash for the quarter however there are a number of items that won't be persistent. Working capital increased by 4.7m - this shouldn't be expected to be a regular occurrence (although it does continue a trend over FY17). Project capex and stamp duty paid will drop off in the next few quarters.
All in all an interesting story here but pretty undervalued in my opinion.
SLR Price at posting:
34.5¢ Sentiment: Buy Disclosure: Held
