Q: Do you know why SKE has been selling off lately? Was there any negative news on it ? Do you think its a good buy at current price? Thanks
5i Research Answer:
SKE is down about 15% in two weeks, but there has been no recent news. It reported financials May 10 and that was the last news. It did report a loss and the loss was higher than estimates, and the stock has been drifting since then. It has lots of cash but no reported revenue. Losses are expected to continue as is negative cash flow. It continues to develop its two projects. We would consider it OK overall for a developer and would see the decline as an 'accumulation' opportunity for investors in the developer sector. We would not see a big rush to buy but the decline makes it more attractive, certainly.