Smart Group Long Term buy @ $6.90

I believe Smart Group represents a reasonable entry point at $6.90 as a long term buy on the proviso that one is happy to dollar average downwards and hence does not take too large an initial first position.

As mentioned in previous threads the underlying business is a good, with sustained high RoE yet with not high levels of leverage.
The underlying business is a reasonably stable business (ie not excessively cyclical), which makes it easier to forecast value.

As Warren Buffett states, its usually better to acquire a good company at a fair price, than an average company at a good price.

At $6.90, the 41c dividend seems reasonably stable even with the forecast hit to profits from the insurance issue. (Remember there is a different of $20 million of amortisation of intangibles which is non-cashflow and equates to 16c per share), hence why SIQ reports both NPAT and NPATA.
A 41c dividend is 6% fully franked yield which is not bad in the current environment.

At current prices, SIQ screans reasonably well on P/B vs RoE for FY2021 forecast numbers (acknowledging the uncertainty of these numbers given the unclarity surrounding the insurance issues)

I acquired a first position today, but have left plenty on the table to dollar average downwards.

Ideally I would like to acquire SIQ at around $6 per share, but the market may or may not give me this opportunity.