Question on SEK

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Question asked 24/03/2021

Question on SEK

Hi James and team, Thank you for your insightful views over the last couple of weeks – markets are so very volatile. I would appreciate your thoughts on CUV which I have had in my portfolio for a couple of years now and have doubled in value in that time. I also have SEK - I sold half at $30.32 and still holding the other half and sitting on a 75% gain. Appreciate your thoughts. Thanks, Liz B

Answer

Hi Liz,

Sorry I missed the second half of your question last week, my bad!

SEK was hit hard in mid-February following the announcement that founder Andrew Bassat will be stepping down at the end of June, he’s undoubtedly performed a magnificent job but SEK will move on just as many companies have, especially given Ian Narev who i view as an exceptional operator is taking over . When the company reported last month revenue was only down 6% over the 6-months due to COVID which felt a solid result plus they upgraded moving forward but the Bassat news was front and center in many investors’ minds.

We like SEK as a business but question the level of its growth prospects from here hence entry price is important, especially as bond yields have been pressuring the growth sector, at this stage we can see SEK consolidating between $26 and $30

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Seek (SEK)

LAST UPDATED 24/03/2021 16:28

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