Loaded up into Earnings… Added into earnings as this will finally turn back to fundamentals and away from the macro. Post Brexit it has only bounced 3.5% relative to LNR 26%, MG 16% and MRE 18%. Could get a nice catch up trade.
Fundamentally, I have a lot of confidence in this quarter with the South African losses no longer dragging EPS and AFX acquisition included in results that should contribute nicely to EPS growth and should be a growth driver for the foreseeable future. Trading with a forward P/E of 8.8x with a growth rate of 31% for a PEG of 0.28 looks real cheap.
Management have loaded up this summer buying stock time to find out why.