sra phoenix to rise (a bit)? - re: delivers compa
SRA’s track record justifies the scorn poured on it by HC posters and others…no argument!!!
But new investors that don’t carry the old baggage are likely to be attracted to this stock early next year. They will be thinking about the refurbished stores, the tighter financial controls, new/more credible management, and growing sales in a competitive environment. If SRA’s profit predictions for the 05FY are met, it may have a P/E of less than the sector average. Second quarter 05FY results will capture the Xmas retail period and add to momentum.
New investors will embrace the SRA ‘turnaround’ scenario and won’t give a rodent’s dispatch-hole about albeit historically justified cynics/critics (…....other than for amusement ie...."poor sod must have lost a buck on it to carry on like that/must have an ulcer"?)
SRA likely to ride up on the back of new investors early next year!
------------------------------- The Intelligent Investor 16th Sept,...... -------------------------------- STRATHFIELD (SRA) $0.19 MARKET CAPITALISATION $57m OUR VIEW HOLD FOR THE UPSIDE
Management is forecasting a net profit of between $5m and $5.5m for the 2005 financial year as the opening of new stores with a re-vamped format and the closure of unprofitable sites continues. The higher of those two figures would produce earnings per share of about 1.8 cents, putting the stock on a PER of 10.5. Given the level of insider buying, it’s quite possible we’ve missed something and herein lies the twist: we’dlove to hear from subscribers who have spent some time in Strathfield stores and/or have crunched the numbersfor themselves. It’s possible that our salutary past experiences are blinding us to a significant opportunity. With the shares up 36% since our retail sector review in issue 153/Jun 04 (AVOID—$0.14), for the time being we can only upgrade our recommendation to HOLD FOR THE UPSIDE
SRA Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
