Service Stream, one of Australia's leading communications and utilities industry service providers, has left many investors scratching their heads wondering if and when management can turn this company around.  "One off" losses and legal claims from recent projects has resulted in SSM posting a full year loss of over $2m for FY2010, after posting profits exceeding $10m in previous years. It could be argued that you can look past the losses due to “one off's”, but the question remains, how many “one off's” do you allow before they become continuous wealth destroying activities?

 

Let's be positive and assume management do turn it around and the company runs smoothly throughout coming years. Service Stream operates a low margin, low ROE business which on it's own makes me apprehensive to invest in the company. The company does however have a large contractor...