My financial reports like many of the others are VERY LONG!!!!.  Took a very long time to really get to the end of them all.  There is a lot of filler in them, really puffing up the image of the business, it is clear as in the reading that these reports are created for the eyes of the investors, creditors, debtors and the community.

I felt that when reading the first two financial reports including the years for 2010, 2011  and 2012; I was very enthusiastic about the company.  I thought 'Hmm, this is a good looking portfolio.  If I wasn't a poor college student, I might invest here."  In 2011 an increase in revenue of 65% to 555 Million.  Net profit after tax NPAT increased 4.2% to 26 Million.  Order books increased, employment increased, new projects and operations left, right and centre.  And this was with a reported slow down and intermittent closing of operations due to the bad weather from cyclone Yasi.  According to the ASX (1), Share prices at the beginning of 2011 were at 2.150 and fell to 1.900 at the years end.  But early in 2012 rose to a staggering 2.450, the highest since 2008.  But it was then that the company made a turn for the worst.  I am glad that I didn't invest the .50cents that I have to my name in this company upon further investigation.

I looked into the current market for Sedgman Limited and how the great have fallen, and risen again and fallen, and then rose giving a little hope before plummeting again in a pattern that they seem to know all too well.


After February in 2012, the share price plummeted to 1.4 and continued to fluctuate but ultimately decrease to a low of .450, the lowest in ten years. In just a little under 2 years, the shares went from over 3.550 to 0.450.  This seems to be a common pattern for Sedgman, and a skilled investor may be able to gain from their fluctuations and use the patterns to their advantage.  But not this novice, no.

This experience has definitely confirmed the idea that we must look at the scope of an organisation over a number of years, for the long term and not just through a narrow view at a few years time.



1  (http://hfgapps.hubb.com/asxtools/Charts.aspx?asxCode=SDM&compare=comp_index&indicies=0&pma1=0&pma2=0&volumeInd=9&vma=0&TimeFrame=M4)