Service Stream (SSM)

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Question asked 18/06/2021

Service Stream (SSM)

Hi Team,

Any thoughts on why SSM was initially up reasonably strongly on their news release, only to give it all back over the rest of the day (Tuesday 15/6). Why might the market change its "mind" after a couple of hours of digesting the news in this case?

Nick R.

Answer

Hi Nick,

This is not an uncommon market reaction as the initial market move is often focused on headline comments / numbers but in the case of SSM, there was really no new news offered in the announcement other than to reconfirm previously downgraded guidance. Ultimately we think SSM is interesting around 90c for aggressive investors / traders. NB we are long in our Active Income Portfolio but averaging doesn’t fit our overall yield objective but holding tight for now does make sense.

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Service Stream (SSM)

LAST UPDATED 18/06/2021 20:38

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