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Nice price movement today, not sure if analysts are coming to...

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mkench17

236 Posts.

87

29/11/23

13:47

Post #: 71169559
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Originally posted by mkench17: ↑

Not to downramp because I do believe it was oversold but yes it was 4% of revenue but this represents a magnified effect on EBIT as this will hit EBIT by7-8%. This is because of the higher fixed cost base business model LNK operates.

Now the kicker is HESTA was roughly 1m members I believe. Contract renewal for Aus super (3.1m members) and CBUS (0.9m members) is happening over the next 12 months. Any of these clients that don't renew will be catastrophic. Based on LNKs history I am understanding of the fear and why its been beaten down with a huge questions over these very material contract renewals.

That being said I am a gambling man and I have added 25% to my current holding at $1.26 and don't see from a rational perspective why Aus super would switch as there is no competitors that can truly take on a company of that size currently.

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Nice price movement today, not sure if analysts are coming to terms with the upgrade in earnings or if they have had time to have extra conversations with management about how confident they are that Aus Super is renewing the contract.

LNK Price at posting: $1.34 Sentiment: Buy Disclosure: Held
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0 Great analysis

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