29/04/2022 09:11

Sims Ltd (SGM) $21.05

Recycling business SGM is a stock MM has liked for a while with its environmentally friendly outlook likely to catch potential suitors’ attention e.g. even China is gearing up to switch to the use of scrap metal instead of relying on Australia’s iron ore. The stocks are certainly at the cheap end of town trading on an Est P/E of ~8x plus the companies already generating plenty of cash hence we like the outlook for this $4.1bn business on a number of fronts including as a potential takeover target.

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15/02/2022 17:26

Sims (SGM) $17.04

SGM +13.68%: the best on ground for the ASX200 today was scrap metal business Sims following a strong 1H result. Revenue jumped 74% to $4.27b and earnings (EBIT) came in ahead of guidance at $362m, up over 5x for the first half of 2021. Margins grew despite the company noting inflationary but there were more than offset by a 64% jump in prices for...

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02/12/2021 09:21

Sims Ltd (SGM) $14.30

SGM has been very quiet over the last few months but we feel it looks poised to add to the strong gains enjoyed in October after the companies solid annual report. This metals recycling company is kicking goals on the corporate level and we feel its cheap as are a few of its peers in the Materials Sector – one for our watchlist if we tweak our holdings...

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26/10/2021 09:33

Sims Ltd (SGM) $14.47

Metal recycling business SGM has corrected 34% pretty much in line with the iron ore sector although there are more strings to this recycling business. The company delivered earnings ahead of guidance for FY21 but after an initial spike higher the stocks struggled of late as lower scrap prices obviously impede profitability – a projected 3.75% yield also helps....

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19/08/2021 09:36

Sims Ltd (SGM) $16.12

Metals recycling business SGM was the markets 2nd worse performing stock yesterday falling -5.8% after digesting the previous days results and encountering a downgrade by Macquarie Group. We see no issue with SGM more just a  case of too much too soon after popping to fresh highs earlier in the week i.e. another classic “fade the rally but BUY the dip scenario”.

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17/08/2021 08:00

Reporting Today (ARB, BHP, BRG, BXB, CL1, DHG, DXS, EML, SGM, MFG, SCP)

Companies reporting today on MM’s radar include: BHP Billiton (BHP) FY21 Results: Result due out aftermarket today with expectations for revenue of $US59bn, EBIT of $US30.06bn, NPAT of $US17.14bn (up 96% on FY20), EPS of $US3.43, FY Dividend $US2.99. Market currently pricing NPAT for FY22 of $US15.61bn, a jump of 17%.

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12/08/2021 09:42

Sims Ltd (SGM) $16.64

Recycling business SGM has rallied strongly over the last year but it still offered investors 3 opportunities to buy the stock into 15-20% corrections. The stocks clearly bullish, at this stage we see 2 likely swings over the coming months:

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17/06/2021 09:19

Sims Ltd $16.73

Scrap metal business SGM is clearly not a classic miner but it resides in the Australian Materials Sector and it’s been very correlated to other resource plays through 2020/21.

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20/05/2021 09:21

Sims Ltd (SGM) $15.80

Another stock in the materials space to fall ~4% yesterday was recycling business SGM which is now already 10% below last week’s high, the risk / reward will start to look attractive around the $15 area but a deeper correction wouldn’t surprise in today’s volatile environment, especially if the $US bounces as it did overnight following the Fed minutes.

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15/12/2020 13:57

Sims Ltd (SGM)

Metal recycling business SGM has regained its mojo in 2020 as scrap metal prices recover helped by iron ores impressive advance since March – steel based producers obviously consider whether iron ore / coking coal or scrap is cheaper. The risk / reward is not overly exciting at current levels but a pullback towards $12 would spike our attention, especially as SGM fits our reflation view into 2021 – a 3% dividend also helps in today’s rate environment.

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