Looks like a very good set of numbers. Considerable confidence expressed about outcomes for 22/23. A cash balance of $108M seems amazing for a $330M company I guess that’s being held back for expansion at the right time…they’ve been very patient about this. Inflation will eat into that cash. I’d like to see some of it used for a buyback, but maybe they’re worried about liquidity, given that Alf owns half the shares, so there must only be about 50 million held by others. I’ve got 17,000 now myself, coz I can never resist topping up when it slips into the low 3’s! Overall, not for the first time, I don’t get why the share price isn’t higher. There seems to be this feeling “this is a difficult industry at the moment” but SRV, unlike others, is consistently maintaining its profits and continues to pay a strong, reliable dividend. With that huge cash balance and no debt whatsoever, it’s hard to see it getting into any trouble. Tough times would actually create a ripe opportunity to put that cash reserve to work. Company looks in very good shape, as always.
SRV Price at posting:
$3.49 Sentiment: Buy Disclosure: Held
