STW Communications under review

The share price of Australia's largest marketing communications group has fallen 45% since we downgraded. It's time for a closer look.

By Graham Witcomb · 21 May 2015

By Graham Witcomb ·
21 May 2015 · 1 min read

STW Communications' share price has fallen 45% since we downgraded the stock in STW goes off message; Enero on track on 23 Oct 14 (Sell – $1.09). The company has net debt of $227m and little free cash flow, which could prompt a capital raising – especially if the industry is entering a prolonged downturn. With STW Communications' current share price hovering just below our Buy price, we want to review the situation in depth before making any changes to our recommendation. We expect to publish our findings in the next few weeks and, until then, STW Communications is UNDER REVIEW.

IMPORTANT: Intelligent Investor is published by InvestSMART Financial Services Pty Limited AFSL 226435 (Licensee). Information is general financial product advice. You should consider your own personal objectives, financial situation and needs before making any investment decision and review the Product Disclosure Statement. InvestSMART Funds Management Limited (RE) is the responsible entity of various managed investment schemes and is a related party of the Licensee. The RE may own, buy or sell the shares suggested in this article simultaneous with, or following the release of this article. Any such transaction could affect the price of the share. All indications of performance returns are historical and cannot be relied upon as an indicator for future performance.

STW Communications under review

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STW Communications under review

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