A director at SGH Ltd bought 30,000 shares at 45.923AUD and the significance rating of the trade was 100/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly show...
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....
A director at Slater & Gordon Limited sold 30,026 shares at 4.143AUD and the significance rating of the trade was 61/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years ...
We maintain our Extreme fair value uncertainty rating and AUD 0.01 per share fair value estimate for Slater & Gordon following another poor financial result. At AUD 0.16 per share, we continue to believe the shares are materially overvalued and reiterate our intention to cease coverage of the company early next month. The AUD 425 million loss reflected an improvement on the AUD 958 million loss in the previous corresponding period but remains a substantial concern. Both operating and investi...
We are updating our methodology for extreme uncertainty stocks to introduce a margin of safety for a Buy rating of a 75% discount and for a Sell rating a 300% premium. Extreme uncertainty stocks will carry a Hold rating when they trade between a 50% discount and a 150% premium. As is the case for stocks in any uncertainty rating category, a Buy rating indicates our belief that appreciation beyond a cost-of-equity-like return is highly likely over a multiyear time frame. A Hold rating indicates o...
We intend to cease coverage of Slater and Gordon in March 2017. Over the past several years, the company has destroyed a considerable amount of value, highlighted by the disastrous acquisition of the Professional Services Division, or PSD, from United Kingdom-based conglomerate Quindell for AUD 1.2 billion in 2015 that led to a AUD 1.0 billion loss in fiscal 2016. The PSD acquisition significantly increased net debt but the promised earnings simply didn't materialise, putting Slater and Gordon i...
The disastrous fiscal 2016 result reinforces our view that Slater and Gordon warrants an extreme fair value uncertainty rating. This means the range of potential financial outcomes is too wide to provide a fair value estimate with reasonable accuracy. The degree of uncertainty around the equity and the risk of significant capital loss mean that the shares are unsuitable for most investors. Our fair value estimate remains suspended, and we still believe the company lacks a sustainable competitive...
Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind...
The disastrous fiscal 2016 result reinforces our view that Slater and Gordon warrants an extreme fair value uncertainty rating. This means the range of potential financial outcomes is too wide to provide a fair value estimate with reasonable accuracy. The degree of uncertainty around the equity and the risk of significant capital loss mean that the shares are unsuitable for most investors. Our fair value estimate remains suspended, and we still believe the company lacks a sustainable competitive...
The decision by the British electorate to leave the European Union is likely to be negative for Slater and Gordon. The British pound has fallen sharply against foreign currencies, including the Australian dollar, depressing the value of Slater and Gordon’s U.K. operations. Slater and Gordon was already in a difficult position following its disastrous acquisition of Quindell's Professional Services division, or PSD, in early 2015, and the company reported a AUD 958 million loss after tax in the...
Slater & Gordon (SGH) proved it has been listening to investor concerns, has improved its disclosure and promised more in the future. FY15 results were somewhat distorted by accounting changes, but show good progression on a number of fronts. The management team continues to reiterate its cash and EBITDA guidance from the Quindell PSD acquisition. Our analysis indicates the material revenue acceleration and cost control to achieve management guidance is stretching, but not unachievable.
Slater & Gordon (SGH) has announced the terms of its acquisition of Quindell’s Professional Services Division (PSD) for an initial cash consideration of £637m (A$1,225m) with a potential further £40m earnout. The deal will be financed through an A$890m equity raise and A$375m debt (both fully underwritten). The company's estimated EPS enhancement is 40%+ (our upgrade is higher), with the acquisition priced at c 7x EBITDA. Strategically, it provides further economies of scale and the opportun...
Slater & Gordon (SGH) delivered strong revenue and profit growth driven by both historical acquisitions and continued organic growth. Its management systems and brand spending are proving highly scalable and the group announced two further UK acquisitions with its results. It is leveraging well its Australian competitive advantages into the much larger UK market.
SGH’s FY14 results were ahead of expectations driven by a beat in UK revenue. We believe this, and two new Australian acquisitions announced with the results, will see consensus upgrades. Management is guiding to further modest acquisitions in FY15. SGH’s own-brand development, tight management of workflow and economies of scale are delivering good growth. The dividend was increased from 6.6c (FY13) to 8c (FY14).
Slater & Gordon (SGH) is the leading consumer law firm in Australia and has been expanding into the much larger UK market, which we review in detail in this note. Its differentiating features include economies of scale, work process engineering and using its brand to market directly to clients. Its UK operations appear less exposed than the market to the Jackson reforms and the Mitchell ruling and they should provide opportunities for both organic and inorganic growth.
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