Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
We recommend shareholders in no-moat-rated Navitas vote in favour of the BGH Capital consortium’s Scheme of Arrangement at the Scheme meeting on June 19, 2019. We think the offer is attractive considering it’s 34% above the prebid share price and 14% above our AUD 5.10 standalone fair value. The offer implies a fiscal 2019 price/earnings ratio of 27 and dividend yield of 3.2% versus a P/E of 24 and yield of 3.6% at our fair value. Our fair value is equal to the offer price of AUD 5.825 as we...
We recommend shareholders in no-moat-rated Navitas vote in favour of the BGH Capital consortium’s Scheme of Arrangement at the Scheme meeting on June 19, 2019. We think the offer is attractive considering it’s 34% above the prebid share price and 14% above our AUD 5.10 standalone fair value. The offer implies a fiscal 2019 price/earnings ratio of 27 and dividend yield of 3.2% versus a P/E of 24 and yield of 3.6% at our fair value. Our fair value is equal to the offer price of AUD 5.825 as we...
We recommend shareholders in no-moat-rated Navitas vote in favour of the BGH Capital consortium’s Scheme of Arrangement at the Scheme meeting on June 19, 2019. We think the offer is attractive considering it’s 34% above the prebid share price and 14% above our AUD 5.10 standalone fair value. The offer implies a fiscal 2019 price/earnings ratio of 27 and dividend yield of 3.2% versus a P/E of 24 and yield of 3.6% at our fair value. Our fair value is equal to the offer price of AUD 5.825 as we...
No-moat Navitas’ first-half result was in line with our expectations and management guidance and we have maintained our fair value estimate at the BGH consortium offer price of AUD 5.83 per share. Our fair value implies the BGH acquisition is highly likely to proceed and the first-half result only strengthens this view. The reported result was muddied by the ongoing reorganisation of the company, which began last year following the appointment of David Buckingham as CEO. We’re not particular...
No-moat Navitas’ first-half result was in line with our expectations and management guidance and we have maintained our fair value estimate at the BGH consortium offer price of AUD 5.83 per share. Our fair value implies the BGH acquisition is highly likely to proceed and the first-half result only strengthens this view. The reported result was muddied by the ongoing reorganisation of the company, which began last year following the appointment of David Buckingham as CEO. We’re not particular...
Navitas is an industry leader in providing pre-university and university pathway programs, chiefly to Asian and local students, but also increasingly to non-English-speaking students in the United Kingdom, Canada, Singapore, and the United States. Since its 1994 inception, student numbers have increased significantly, with more than 80,000 in 2018. Since listing in 2004, the company has grown rapidly. We expect this to continue as it expands internationally. The main threats to this growth are t...
No-moat Navitas’ first-half result was in line with our expectations and management guidance and we have maintained our fair value estimate at the BGH consortium offer price of AUD 5.83 per share. Our fair value implies the BGH acquisition is highly likely to proceed and the first-half result only strengthens this view. The reported result was muddied by the ongoing reorganisation of the company, which began last year following the appointment of David Buckingham as CEO. We’re not particular...
We have increased our Navitas fair value estimate to the revised BGH consortium offer price of AUD 5.83 per share as we think there’s a high probability that the offer will proceed following the Navitas board’s decision to allow due diligence and recommend the offer. We were surprised the Navitas board rejected the original AUD 5.50 per share offer last November and expect shareholder pressure has forced a resolution of the impasse. Shareholders were clearly unhappy at the board’s rejectio...
We have increased our Navitas fair value estimate to the revised BGH consortium offer price of AUD 5.83 per share as we think there’s a high probability that the offer will proceed following the Navitas board’s decision to allow due diligence and recommend the offer. We were surprised the Navitas board rejected the original AUD 5.50 per share offer last November and expect shareholder pressure has forced a resolution of the impasse. Shareholders were clearly unhappy at the board’s rejectio...
We have increased our Navitas fair value estimate to the revised BGH consortium offer price of AUD 5.83 per share as we think there’s a high probability that the offer will proceed following the Navitas board’s decision to allow due diligence and recommend the offer. We were surprised the Navitas board rejected the original AUD 5.50 per share offer last November and expect shareholder pressure has forced a resolution of the impasse. Shareholders were clearly unhappy at the board’s rejectio...
We have increased our Navitas fair value estimate to the revised BGH consortium offer price of AUD 5.83 per share as we think there’s a high probability that the offer will proceed following the Navitas board’s decision to allow due diligence and recommend the offer. We were surprised the Navitas board rejected the original AUD 5.50 per share offer last November and expect shareholder pressure has forced a resolution of the impasse. Shareholders were clearly unhappy at the board’s rejectio...
Downgrades and market weakness. Most sectors fell during the month, but IT and Financials helped limit the rout. Lack of upgrades rather than excessive downgrades was the main problem. Follow Earnings During a Correction. NSR and SFR have seen relatively large increases in short-positioning, while heavily shorted stocks SYR and GXY saw relatively large falls. Labour market, consumer confidence and business confidence indicators all suggest the economy remains solid, despite evidence the ...
We expect 2019 will be challenging. The risks for the domestic economy seem skewed to the downside. An Election Year with a change of Government Likely. Accumulate, but Don’t Over-pay for Defendable Earnings. Private equity bids for NVT and TME have forced us to remove these stocks from the portfolio and we take profit in these names. We think bond yields are past their peak for now and have been gradually building positions in property.
We have reduced our fair value estimate for Navitas by 7% to AUD 5.10 per share following the board of directors' decision to deny due diligence access to the BGH consortium. We previously expected the AUD 5.50 per share BGH offer to easily proceed to acquisition considering the premium to the prevailing share price and the involvement of founder and recent CEO Rod Jones. However, the current state of disagreement between BGH and the board and the increase in management’s earnings guidance sug...
We have reduced our fair value estimate for Navitas by 7% to AUD 5.10 per share following the board of directors' decision to deny due diligence access to the BGH consortium. We previously expected the AUD 5.50 per share BGH offer to easily proceed to acquisition considering the premium to the prevailing share price and the involvement of founder and recent CEO Rod Jones. However, the current state of disagreement between BGH and the board and the increase in management’s earnings guidance sug...
We have reduced our fair value estimate for Navitas by 7% to AUD 5.10 per share following the board of directors' decision to deny due diligence access to the BGH consortium. We previously expected the AUD 5.50 per share BGH offer to easily proceed to acquisition considering the premium to the prevailing share price and the involvement of founder and recent CEO Rod Jones. However, the current state of disagreement between BGH and the board and the increase in management’s earnings guidance sug...
A Correction and Not the End of the Cycle. In our view, the equity market sell-off in the past few weeks is a correction and a return to more normal levels of volatility rather than the start of an earnings recession. Indicators such as the yield curve, credit spreads and the Fed’s Loan Officer’s Survey all suggest the cycle still has legs. However, the market is beginning to price an EPS growth slowdown and risks are rising as we come towards the end of the cycle. Moving Back to a More Nor...
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