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Sims Limited (SGM) $13.79

SGM -10.63%: Shares in the scrap metal trading company fell to 8-month lows today after the company warned the market of softer earnings early in FY24. They expect EBIT in the first quarter to be around breakeven while a bounce back is unlikely in the second quarter given weakening volumes in the North American market, an area which remained resilient until now. Prices in scrap metal have been hit by soft demand, which has also been a drag on supply in the market which is hitting both sides of the company’s earnings. Sims remains confident in its ability to generate profits over the longer term, however, there seem to be fundamental issues with the scrap market in the short term which we expect will lead to ~10% downgrades to expectations for FY24.

MM has no interest in SGM ~$14
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Sims Limited (SGM)
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