Why did the SEEK Limited Share Price Rise Today?

What Happened to the SEEK Share Price?

SEEK Limited [ASX:SEK] operates a global online employment advertising platform. SEEK operates three main businesses — SEEK employment, SEEK learning and SEEK international in 12 different countries.

The SEEK share price closed 1.78% higher on Thursday.

Why Did This Happen to SEEK Shares?

Today, SEEK’s Chinese subsidiary, career platform Zhaopin, announced a 32% year on year increase in revenue to RMB 298.2 million for the September 2014 quarter.

What Now for SEEK?

Since the start of 2013, the stock price has risen from around $7.10 to today’s $17.

SEEK has been an excellent example of a disruptive tech company. It was able to capture and alter how job seekers applied for positions, ruining a good source of income for newspapers.

It paid a 30 cent dividend for the 2014 financial year. Its debt levels are acceptable. Also, the company is keen to expand further in international markets.

SEEK is currently trading at a price to earnings ratio of 34 times. However, the average annual P/E this year sits at 27. This is telling you investors are expecting earnings to increase next financial year.

The stock is roughly one dollar off its all time high of $18.25. It is appears to be an expensive stock to buy at its current price of $17.10. However, since reaching a new high this year the share price has regularly traded between $16–18.

The growth in SEEK shares isn’t over, but try not to overpay for the stock.

Shae Smith
Editor, Money Weekend

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Since starting out in the financial markets over a decade ago, Shae has extensive experience across various aspects of the industry. Shae cut her teeth in the derivatives industry, teaching clients basic trading techniques with technical analysis.

Joining Port Phillip Publishing eight years ago, Shae has worked across a number of publications, such as Australian Small-Cap Investigator, Gold Stock Trader and Microcap Trader. She’s spent the past two years however, honing her macro analysis skills alongside Jim Rickards, showing Australians how to invest and profit form global macro trends.

Drawing on her extensive experience, Shae is a contributor to Money Morning, and lead editor of sister-publication Markets & Money, where she looks at broad macro trends developing around the world, combining them with her distaste for central banks and irrational love of all things bullion.


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