SMT Scharf (OTC:SMTAF) is a German mining equipment manufacturer with 90% of its revenues coming from abroad. The company has an enterprise value of about €80 million and is the global market and technology leader for rail-bound railway systems.
After my first article on the company there has been a deluge of predominantly bad news on the company and I'd like to update my readers on the most important developments and related considerations.
Lots of bad news
On Monday, 3/24, SMT Scharf not only communicated a 49% drop of its EBIT compared to 2012, but most importantly surprised investors with a disappointing outlook:
The weak investment climate on the global mining equipment market set us back a lot...
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