@Hopeful9 and
@tessathedogTime for a confession and some hope for the future of SRV.
I too listened to the SRV teleconference, the best one of the whole end of year reporting season. I reckon Alf dropped the whole f-bomb, bloody magnificent. This is the sort of bloke you can go to war with. He is right about the coppers. I live in Melbourne and it is far worse.
Here comes the confession. There is a small share broker and financial advisor based in Sydney who I really respect. Occassionally I get the chance to listen in to him. Unfortunately I cannot name him for confidentiality reasons.
Last year in October the broker was asked what was he looking at for his clients to invest in. He said he really liked Pinnacle (ASX Code
PNI). I had not heard of it nor was it on any of my screening tools. I researched it and did a lot of work comparing it to Magellan and Platinum. I knew both reasonably well. I liked what I saw in Pinnacle and invested at $5.70 and last Friday it closed at $17.42 that is a 206% gain in 10 months.
Three weeks ago I got the chance to ask the same broker what he was looking at for his clients. He said the only potential he saw for his clients was Servcorp. His reasoning was that the business appeared to have stabilised, many poor performing floors had been relinquished, the business was still likely cashflow positive, that countries were slowly opening up in the key markets for Servcorp and that vaccination take ups were accelerating around the world. And finally he believed citizens were lockdown weary and that governments were unlikely to continue to impose them.
I knew SRV quite well. I had been in SRV previously but exited in Jan'18 at $5.80 and just broke even. I got out then because I knew there were severe problems in the US, especially New York and there was a potential tax issue coming. I have kept in touch with SRV since then as a watching brief.
So again three weeks ago I went back into research mode and decided to re-enter SRV at $3.21 with a investment horizon of at least 3 years.
The pointer from the broker was very strongly reinforced (as a good time to invest in SRV) by the teleconference hosted by Alf Moufarrige. Alf confirmed for me that the worst was beind SRV and the leverage to a strong financial future was close at hand.
None of the above is investment advice. It is the story behind why I chose to re-invest back in SRV three weeks ago.
Cheers.................Daicosisgod
GLTAH and please DYOR
(20min delay)