Q: Hi Peter,
I am concerned with my big position in SCS which has been coming down without any reason. I have asked a question about it before and you said that at two times annual cash flow the debt is not a problem. The company is making money and has half year cashfow of 22 cents. It has excellent locations with no country risk. I firmly believe it is excellent value at this point. However, you showed some concern on one of your other comments. Apart from the fact that it is small, what other risks do you see? Why would it go down even further from this point?
Thanks
I am concerned with my big position in SCS which has been coming down without any reason. I have asked a question about it before and you said that at two times annual cash flow the debt is not a problem. The company is making money and has half year cashfow of 22 cents. It has excellent locations with no country risk. I firmly believe it is excellent value at this point. However, you showed some concern on one of your other comments. Apart from the fact that it is small, what other risks do you see? Why would it go down even further from this point?
Thanks