Worrying Share Price Decline, page-3

My understanding is that there was a large selloff around and just before 23 June ( Brexit day) which continued to just after brexit. It absorbed around 1,5 million shares up to and including 23 June , 24 June we would still not have known anything here about Brexit and it dropped a bit on that day to $6.95 but the next day it got pushed lower to $6.55 on 284,000 volume. That was the day we all had to rethink the Brexit vote and I know I wasn't buying anything as i had been taken by surprise...

I found that the company only had 4 floors in UK all in London so wasn't concerned and have added to my holdings since then.

The one thing of note is that this share regularly trades less than 50,000 a day so any bump in selling pressure puts a lot of pressure on the share price unless there are eager buyers. The buy and sell pressure needs patience as this can be thinly traded. PPT has been reducing their holdings over a period of time but I suspect they do a lot of that off market or by way of finding a buyer for that volume and doing it via bookover.

I think that many dont look at this stock as it has a few issues:

1. AM and his age and his control of the company. I think its a strength and his family are committed to SRV.
2. Liquidity is a problem...
3. Dont put out fluff to keep shareholders happy only release what they have to and when they have to.
4. Faced a lot of competition in Australia recently thus reducing the ability of the company to pay fully franked dividends.
5. Shareholders are generally not long term players and when they seized the opportunity in 2009 to do a big CR and open more and more floors the share took a real smack as EPS dived and is still a bit off the 2009 mark. However for a long term investor this has placed SRV in a different league... Up there able to compete with REGIS.
6. Unlikely that you will ever get an offer because AM and family wont sell unless its a very very good offer.

What people dont get is:

1. The great earnings are still probably on the horizon as these floors and positioning plays out.
2. The 2009 GFC gave you probably a once in a lifetime opportunity to secure floors at bargain basement pricing.
3. The offshore earnings are great for investors in Australia.

Thats why I am still invested here.