They went through a bad patch in 2009 and 2010 if memory is correct. They have started another expansion phase I think in late 2012. This must hurt SRV as they compete for similar customers.
I think it will just take a bit of time and then the year cash flows will be great.
I believe we need another 3 halves to get the tailwind on this stock. Very happy to hold pay decent dividends as well, which are now fully franked again.
Both companies will trade around 14.5 PE but I see Regus as not having the same growth over the next 5 years. Thats the difference. You get a 6% yield including franking and then you get the higher growth. Regus you get under a 3% yield and even in a growth phase it does not have the same impact for the next 5 years.
There are some interesting innovations at Regus however the petrol station one and a few business sharing opportunities could be useful.
Very happy to just hold this one.
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