Ann: Market update, page-2

One thing that's consistently impressed me with SRH is the 'straightshooter' nature of the company's communication with shareholders and the broader market. Today's announcement is no exception - they're simply reporting things as they are (as they did in their latest half year report).

The market's initial reaction to the news of a relatively minor downgrade in their forecast for sales and profits this year seems a tad harsh to me. SRH still expects to be profitable this year, despite a slowdown in sales in some areas and despite the significant costs they're incurring to underpin future export-driven growth.

The board's medium-long term focus is a key reason I rate SRH highly. Over the last five years or so, the board has consistently demonstrated their longer-term focus by, for example, the substantial (and ongoing) investments in R&D and laying the groundwork for significant growth in overseas sales. That's what I like to see - a board with its eyes set firmly on the future.

In my view, investors who share the medium-long term vision of the SRH board will be well rewarded - and any dips in the share price probably represent decent buying opportunities.