A few days ago, Silver Chef came out with their half-year update. There is the glossy half-year 2018 Investor Presentation and the 2018 half-year report.
Looking at the stock price, the market clearly didn’t like the news very much:
So what happened ?
Disclaimer: This is not investment advise !!! Do your own research !!!!
The guy who wrote this post just lost a lot of money with his Silver Chef position. You might even consider shorting his recommendations 😉
When I looked at Expedia almost exactly one year ago as part of my 2017 Travel Series my key take negative aways were as follows:
– CEO has super high salary (90 mn USD in 2015)
– top line growth, operating profit stagnant
– expensive acquisitions in 2015/2016, number of shares and debt increased significantly
– reported growth numbers not adjusted for acquisitions in investor presentation
– lots of share options
Additionally, the stock looked expensive:
At 119 USD per share, Bloomberg tells me that they have a trailing P/E of 54, an expected 2017 P/E of 22,3 and an EV/EBITDA of ~16. This means that a lot of growth is already priced in.
As we can see in the chart, the stock became at first even more expensive before dropping back to a level of around 100 USD / share:
To be honest, I knew about Sam Zell and his real estate empire to some extent but I didn’t consider him as a great general (value) investor so far. This clearly changed after reading his “Memoirs”.