Industry knowledge, the cycle of contract work.
The boom, loads up on contract labour.
The contraction, dump all contract work/workers
The recession, dump all permanent work/workers
The growth, we need more contractors we have too much work. But don't get permanent workers incase we slow down again.
Contract work will be the standardised type of work/employment within a decade. The government and unions have made permanent employment a thing of the past.
The entire public sector will get sold off, health/medical, council work, prisons/correctional facilities, council work, emergency services.
I wonder if the government could become a corporation? I guess the interest is there already with Clive palmer taking a seat.
Anyway the point is PRG is hurting now, I can see a chance of 3-6 more months of pain whilst the miners are bleeding, but really? The government will do everything in their power to ensure the growth cycle kicks off again, even if it means dropping interest rates to 1% and cutting the AUS$ to $0.50. They will do this I can assure you of that.
When this picks up PRG, SKE will be waiting with their assault ready to get balls deep in contractor work.
So I expect a stinker of a half yearly and even maybe a full year, but I'm lurking waiting for the market to show me your weakness. I will be there waiting to buy.
PRG Price at posting:
$2.24 Sentiment: Hold Disclosure: Not Held
SKE Price at posting:
$1.45 Sentiment: Hold Disclosure: Not Held
