Seek (SEK)

1st March 2016

Doing the job

The stock in focus this month is Seek (SEK). Seek is an online employment classifieds platform. Seek has grown from an Australian based domestic employment platform to a geographically diversified business operating in over 14 countries. There are three main business units, SEEK domestic employment which attracts over 35 million monthly site visits with over 135,000 monthly paid job ads; Seek International which operates in key growth markets, such as China and Brazil, with 340 million monthly visits and over 3 million monthly job ads and Seek Education which run vocational education courses for over 55,000 students per year.

Seek is looking to increasingly expand its offshore footprint building on proven strategies built up in the domestic business. However in a world of increasingly critical analysts and indeed shareholders, Seek has been criticised for reinvesting in the systems and product development for these emerging businesses. This recently reached a flashpoint when CEO Andrew Bassat vented his frustration at the market and analyst short term view, arguing that it was vital to invest today in order to build a dynamic and growing business, especially where the company is so well placed in an ever growing market place.

Another recent development recognising the potentially discounted value in the business, is the bid for Seek part owned Chinese employment site Zhaopin’s US listed shares that are not owned by Seek. Seek expects that, should this transaction be successful, they will receive an approach from the consortium for Seek’s share of the company.
We see Seek as providing excellent growth potential and unlike many these days are encouraged by their confidence and the balanced approach they are taking to continue to grow and build their business for the future. It is good to see management taking a long term view of the future of the business as this accords with the long term investment horizon which is a key part of the Elston investment philosophy.

Quick Stats:

20% growth in revenues from continuing operations
Over 3 million monthly job ads posted world wide
Access to data from 375 million jobseekers and 700,000 hirers

If you would like more information please call 1300 ELSTON or email info@elston.com.au and an adviser will be in touch.

Warnings and disclosures

This material has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained in this material is General Advice and does not take into account any person’s individual investment objectives, financial situation or needs. Before making an investment decision based on this advice you should consider whether it is appropriate to your particular circumstances, alternatively seek professional advice. Where the General Advice relates to the acquisition or possible acquisition of a financial product, you should obtain a Product Disclosure Statement (“PDS”) relating to the product and consider the PDS before making any decision about whether to acquire the product. You will find further details of the service we provide and any cost to you within the Financial Services Guide. Any references to past investment performance are not an indication of future investment returns. Prepared by EP Financial Service Pty Ltd ABN 52 130 772 495 AFSL 325 252 (“Elston”). Although every effort has been made to verify the accuracy of the information contained in this material, Elston, its officers, representatives, employees and agents disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this material or any loss or damage suffered by any person directly or indirectly through relying on this information.

Other recent insights

12 May 2023

How shipshape is your financial plan?

Creating and managing a financial plan for the future is a lot like building a sailing ship. A ship needs sails. Sails drive you forward and give you momentum. So they’re a bit like your investments. Read more

21 March 2023

Don’t put all your eggs in one basket

Recent self managed super fund (SMSF) data has indicated that many funds continue to be very focussed in just one or two asset classes. This is such a significant risk for those investors that in years past the ATO has even taken the step of writing to them suggesting their investments might breach super fund rules. Read more

16 March 2023

Meet the team: Tim McLaughlan

Tim McLaughlan is a Canberra boy who loves his city almost as much as he loves helping his clients. In the first of our 'meet the team' videos, Tim shares his thoughts on what it means to be an adviser. Read more

15 March 2023

Elston Super Webinar March 23

If you want to know how you can help your clients to benefit more from self-managed super funds, join us on March 23 for a super webinar. Watch our intro video to find out more. Read more

22 February 2023

"More Give. Less Tax." Webinar April 20

Philanthropy is powerful. Paired with the right strategy, it can do so much good. Not just for the community, but for your clients too. If you want to explore what major tax benefits philanthropy can offer, join us for "More Give. Less Tax." on April 20. Watch our intro video to learn more. Read more

16 June 2022

How hard will the RBA tap the brakes?

Rising inflationary pressures have however prompted the RBA to indicate that rate hikes to be delivered over the next 18 months will be increasingly aggressive. Will these hikes be nothing more than tapping the brakes? Or could they cause a major slowdown in the economy? Read more

10 June 2022

Fire up your contributions for a few more birthdays

With the commencement of the 2022/23 year many investors over the age of 67 will soon be able to have their cake and eat it too. One of the biggest changes is removing the requirement for those aged 67 to 74 to meet a work test in order to make personal super contributions. Read more