Thoughts on SLH please
Hi MM, Do you think SLH has been oversold, as of now? Thanks, John
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Answer
Hi John,
Silk Logistics (SLH) has endured a horrid time of late with its shares down ~45% in the last 12 months. While export volumes have remained strong, inventory levels have been falling which weighs on Silk’s earnings. The company has been busy on the acquisition front which may prove fruitful in the longer term as they broaden their offering and footprint, however, this has caused plenty of pressure on the stock with more shares on issue and higher expectations through what has been a more difficult period.
- While an interesting business trading on ~10x earnings is enticing, we see no reason to buy this here given the ongoing headwinds.
