SRF has announced its first quarter FY08 results. They are lousy, with a 31% drop in profits. Even sales of CERs have shown a decline.
They COULD have done a lot better by selling CERs, but they chose not to do so, it seems. There’s a new 134-a refrigerant plant coming online but the power in that is the additional CERs it will give, not in the refrigerant itself (which is a low-margin business). They also see a turnaround in the packaging films business but I think that will take a few more quarters to show.
The price has dropped to 146 (from 161) since the results. Sell immediately. This stock will provide better buying opportunities later.
I’m terribly sorry for the delayed response – the results were out on friday – but I’ve been busy with creating a new company and haven’t had much time. (It’s a company that will provide content and information about the stock markets and investments. Most of it will be totally free. I’ll write more about it very soon.)
