SKE half yearly, page-81

The continued weakness in SKE is a mystery and gross over reaction.

Last 6 monthly indicated revenues up 10.6%, EBITDA up 12.3%, and underlying earnings per share up 11.3%. On the con side, gearing up from 21.9% to 31.4%.

Forecasts were reasonable, too, in spite of O&G/mining weakness. Cost savings of $15M for FY15 alone is of the order of the last profit.

I think investors need to be reminded that SKE isn't just an MS company, although thats certainly a large part of their work. Much of that is in the maintenance sector - so no matter what part of the cycle O&G is, for example, the maintenance work (pipelines, platform shutdowns, etc) must continue. SKE have a positive outlook for this sector.

A PE of 6 is ridiculously low: it is one of the lowest in its sector. There is obviously a truck load of emotion driving the SP, leaving good opportunity for those that are "greedy when others are scared"! Of course, a t/o is still on the cards if weakness persists, another good reason to accumulate on weakness.