In this section we place one stock under the microscope and give it the unconventional assessment. SEEK (SEK) – Is a market leading website for job advertisements. The company runs an online employment classifieds platform providing in 12 countries with three main business divisions: SEEK Employment, SEEK Learning and SEEK International. It entails a strong portfolio of employment, education and volunteer businesses which span across Australia, New Zealand, China, South East Asia, Brazil, Mexico, Africa and Bangladesh. SEK receives over 450 million visits to its sites every month and has over 4 million job opportunities available at any given time and relationships with over 150 million candidates. EMPLOYMENT: Provides online employment classified advertising services through the SEK website. LEARNING: Markets, sells and distributes vocational training and education training courses in Australia. INTERNATIONAL: JobsDB (South East Asia), Zhaopin (China), Brazil Online (Brazil) and OCC (Mexico). SEK was founded by Andrew Bassat, Paul Bassat and Matt Rockman. Bulls First mover advantage. In Australia SEK has a monopoly position on the employment recruitment space. There is still significant opportunity for SEK to expand through volume and price increases. New Corp and Fairfax have both been unable to disrupt SEK’s dominance. SEK now captures some 90% of total time people spend online looking for jobs. It dominates the Australian market. Is expanding globally via acquisitions. This business offers strong upside growth potential. There is a low internet penetration in many of the countries it has exposure to. If one takes off, earnings could be substantially higher than that of Australia. Bears SEK’s business is ripe for disruption. Companies such as Livehire, Airtasker, Linkedin and other social media platforms are pulling business away from SEK. The online job advertisement market could break apart due to specialist sites that offer differentiated industry opportunities. The internet landscape can change rapidly. Whilst SEK has dominance, big tech firms such as Google or Apple can enter the job advertising space and cause disruption.  Fundamentals On fundamentals SEK stacks up OK. The StockOmeter ranking came in at 68 which is just shy from the Buy mark. The stock is trading on a PE of 16.97x which means it’s neither cheap nor expensive. SEK’s ROE is relatively high but is dropping which is a little concerning. Dividend yield is OK and debt is quite low. Intrinsic value is lower than its share price, which suggests the stock is overvalued. EPS growth is also positive. On fundamentals, we’d say the stock is fairly valued.  Technical Analysis On the chart, SEK looks to be in an up-trending pennant flag. The stock has held its uptrend support line for quite some time. We don’t think it will disappoint on the downside and break support. Instead we think it might bounce at around $15.50-$16.00. For that reason, we suggest investors buy at these levels. The stock is attractively priced and should continue to track along this uptrend support line. Broker Views Morgans has a Hold recommendation with a target price of $17.39. We broker has a positive view on SEEK. The company offers investors exposure to the global rising hiring cycle and the increasing migration of employment advertising to the online market. So far SEK has risen and responded to competitive threats. Citi has a…

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