SRH - Saferoads Holdings

[bloomy88]

Hello all

Just been doing some research and came across SRH.

It's SP has fallen dramatically from it's high of $3.70 in late 2007.

The services that SRH provide i beleive are fairly recession proof and if anything they could benefit from the increase in government spending on roads in this economic downturn.

Does anyone else hold SRH or have any views on it?

Thanks for your opinions

Cheers

 

[So_Cynical]

Company Summary

• Market Cap: 22,360,000
• Issued Shares: 26,000,000
• 52-wk High: 2.98
• 52-wk Low: 0.70
• Dividends 100% franked
• http://www.saferoads.com.au/

They sell/install road signage/barriers/lighting etc.

Not really what i would call recession proof...be interesting to see if the divi holds.

 

[Dowdy]

Company Summary

Not really what i would call recession proof...be interesting to see if the divi holds.

Can you explain why you don't think they're recession proof.

You always need roads and they're always expanding or doing road works and the government is going to announce an infrastructure plan so that would mean more roads and more road works, wouldn't it?

I'm looking on buying this since i think they will do well in a recession (unless you can say why they won't) and their share price has had a massive drop in the last week due to some debt (but not too much as to bankrupt them). So usually you buy in high selling periods. I'm looking at this as a medium to long term stock

 

[oldblue]

Warakirri Asset Management has recently become a SSH in SRH.
Does anyone have any experience/knowledge of Warakirri? - other than what's on their website.

 

[So_Cynical]

Can you explain why you don't think they're recession proof.

You always need roads and they're always expanding or doing road works and the government is going to announce an infrastructure plan so that would mean more roads and more road works, wouldn't it?

I'm looking on buying this since i think they will do well in a recession (unless you can say why they won't) and their share price has had a massive drop in the last week due to some debt (but not too much as to bankrupt them). So usually you buy in high selling periods. I'm looking at this as a medium to long term stock

Proof as in 100% water proof...i would think there's some recession resistant quality's
to SRH, however there wasn't much "new road" building money in today's announcement
so i cant see that much up side for SRH as a result of the Rudd spending....i mean its not
like there gona put up extra stop signs at intersections.

Also note the SP on the chart i posted 3 weeks ago with the SP around 85 cents, and the
SP today less than half that...today's close 35 cents.

Will there be a dividend?

Obviously much better buying now...than it was 3 or 4 weeks ago, where will the share price
be in another 3 or 4 weeks. :dunno:

 

[Dowdy]

however there wasn't much "new road" building money in today's announcement
so i cant see that much up side for SRH as a result of the Rudd spending

$890 million on road repairs would help out a bit, wouldn't it?

Since they also make barriers and such