SRH 0.00% 4.1¢ saferoads holdings limited

worth some research, page-3

  1. 5,784 Posts.
    re: one for your watchlist aramalap2 - good to see someone else out there looking at this one, I was thinking that I am talking to myself and thought that I will make one more post until they report again next Feb/March!

    Yes - has some promise, so as always I suggest people do their own research.

    I track financials and see some potential here with their consistent growth rates before listing and their continuation since (short as that is) and their potential to keep that going.

    Only 26 million shares after the latest placement and a market cap of under $40 million so if they can find the right 'bolt on's' then I can see potential - ie find early bolt on's while their market cap is low and say pay 5 times earnings and the market mark them on a pe of say 12 minimum then I can see good leverage in share price - whether that be debt or worst case dilution.

    Although a different situation entirely - the good financial ratios, small number of shares and 'steady' growth potential have some similarities to another stock I have in NBL. The 'bolt on's' in NBL were additional stores and funded from profits - but the same potential for adding new business on a multiple of 5 or so that then gets marked by the market at 12 times is attractive imo.

    I assume that they can find these bolt on's and the major contract they rely on is secure - although I see that as a potential risk - hence why I say do your own research to people.

    I also note competition in another stock that you follow in some common products in NHR (and COA) - I guess that has to be considered too - but hopefully they will get their share of the cyclical market.

 
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