Relative Strength

When looking at share price action, or lack thereof, it can be useful to compare S&G performance over the near term with listed competitors operating in a similar field (specifically PI UK).

If the SP is not moving yet holding up well comparative to competitors then it is a good sign.

NAHL have said they expect a GBP4m reduction in FY17 as they undergo their version of a PIP,  restructuring its business model in advance of change.  NAHL are down over 40% in a month.

S&G are down just 12% in the same period.  It could be argued that the S&G decline is solely down to the cautious AGM rather than ongoing pressure in the industry. In other words S&G downside is now priced in, subject to no debt issue raising its head .

Redde are also down around 12% in the same month period.

Slater & Gordon are performing better than competitors - while the SP malaise might feel poor it is a good sign that it is holding up, and in fact improving (slightly), while others continue to slip on industry reform.


SLATER & GORDON: November 2016 SP performance



REDDE: November 2016 SP performance




NAHL: November 2016 SP performance