I am new to this board, but love the value plays. I understand SRV's debt structure and know how to read financials, so please no attacks for my reasoning in being intrigued by SRV..although once more due diligence is done, I would love to argue with shorts, if I finally do find SRV a worthwhile investment. I look at this Company as a long-term play. One of my favorite stocks, not funds as I leave technology investing to the professionals, is Southwest Airlines Obviously I am taking a long-term approach that is based on the demographic shift occuring. Southwest Airlines is a great low-cost provider and people tend to travel more when they are retired. SRV will be there to bury the baby boomers. Yes I understand that actuarally people are living longer and if the Company declares bankruptcy my investment will be real long-term or non-existent. If someone has thoughts on my reasoning and or sound comments; "This stock is going up/ down because the stock is good/ sucks" don't qualify, I would love to hear them. I would love for someone that really understands this stock to chat with me about it. Thanks in advance to all serious investors. Are their any believers in Loewen?
I suggest anyone interested in learning about what is going on in this industry read this 10k. Many parallels to SRV including a Moody downgrade:
"On December 8, 1999, Moody's Investors Service ("Moody's") announced that it had lowered the Company's credit rating from Baa3 to Ba2, and on December 15, 1999, Standard & Poor's ("S&P") announced that it had placed the Company on credit watch with negative implications. Interest paid by the Company on its revolving line of credit is based in part on its credit ratings from Moody's and S&P. While the outcome of the S&P review cannot be predicted at this time, neither it nor the Moody's downgrade is expected to have a material effect on the Company's results of operations."
On year 2000 prospects:
"As previously announced, the Company recently revised its short- and medium-term outlook and goals. The Company currently anticipates that fiscal year 2000 will be a year of transition, from a period of rapid growth, fueled primarily by acquisitions, to a period of moderate growth, driven primarily by internal growth strategies and a more intense focus on improving the operations of businesses acquired. In this regard, management's current goal is to grow revenue in fiscal year 2000 at about 1 percent from 1999 amounts with relatively flat, to slightly down, earnings before interest, taxes, depreciation and amortization (EBITDA) from 1999 amounts. Management's current earnings per share goal for fiscal year 2000 is in the $.68 - $.72 range."
STEI looks like they will survive and the low stock price just reflects questionable growth prospects for the near future. The market tends to put a pe of 10 or less on busted growth stocks.
This is so much fun being like WD. I was driving home from work yesterday and came up to a stop light that was turning from Green to Yellow. I did just like WD would do and made a prediction that the light would turn green. Well 30 seconds or so later it did turn green. Hey, I'm 1 for 1 or 100% accurate and its only my first day. Eat your hearts out you pathetic, non-WD_Gann1 following losers.
By the way, I had to change my eating habits to be more like WD. I only eat 'WEENIE Tots', Tofu, and Lactose free milk. Plus I have a bran muffin for dessert. My lands, I need to put on my sweater and lock the door to keep hooligans like the 'Tedco's of the world away. I am having so much fun too!!!!!!!!! Ooops, my teeth fell out.