Ann: Trading Update , page-12

Hi Hotcongo,

I agree that SRH appears undervalue at the moment, having said that, I sold and took profit at around $1 as soon as they made the no div ann. I did this for a couple of reasons;

1. $8M debt, the bad four letter word at the moment,

2. no div ann, any cautious or negative ann's in the market at the moment seems to be met with a price drop, (unless you are CSL:)))

3. while there is a lot of road action happening at the moment, I think they are all roads that were budgeted and approved under the Howard gov and funding put aside in prior budgets.

4. While Rudd & Swan have been talking up roads, I don't think they have funded any major ones yet. My understanding is that even when they do announce a major road being funded and constructed, they are still then years away from the actual construction commencing after all the planning has happened. If this point is true then there may be a lag for SRH business in between projects.

Of course these are only my views and in no way a recommendation, I am not part of the industry so I have no inner knowledge, though for what it is worth I thought I would explain why I sold when I did. I plan to buy SRH again and I have it on my watch list, though I will wait for a positive ann before then. Mop.