"I notice you have this as not held. What's holding you back from buying a share of this company?"
In a word, valuation.
I did own the stock at stages over the course of 2023, but it hasn't been a high conviction position. As a result, it has been a "trade" for me which, while profitable, is not in keeping with my investing DNA which is more aligned with being a long-term holder of rapid-growth compounders. Or, when opportunity presents, a buyer of cyclical businesses trading at very steep discounts to intrinsic valuation.
I don't think SHL is either of these.
But there are times when it does succumb to the market schitzophrenia from being overly loved to being overly hated. Which is why I maintain a watch on the business, but it's never represented elegant investing in my mind, because the times I have made sh0rt-term money out of it, I feel it involved too much luck for my liking.
Don't get me wrong; it isn't a cruddy company. It's a resilient business model, with granular customer base and stable recurring earnings [*], and is more than ably stewarded by its directors.
It's just that it isn't a nimble ski-boat that is capable of rapid acceleration (instead, it's more like a slow-moving oil tanker... slower than the ski boat, maybe, but a lot harder to sink); nor is it ever priced at bargain basement levels that permits having a big, red-hot conviction go at it.
[*] In this same pathology space, I did spend a few hours the other week looking at a minnow in the industry [https://hotcopper.com.au/posts/72281791/single], which looks a lot cheaper than SHL, but the trade-off is that it lacks the long track record of SHL,
.
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Last
$27.68 |
Change
-0.170(0.61%) |
Mkt cap ! $13.29B |
Open | High | Low | Value | Volume |
$27.99 | $28.00 | $27.57 | $46.84M | 1.691M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 1100 | $27.63 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$27.69 | 6349 | 2 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 4704 | 27.600 |
1 | 31 | 27.550 |
1 | 500 | 27.540 |
1 | 300 | 27.520 |
3 | 1401 | 27.510 |
Price($) | Vol. | No. |
---|---|---|
27.800 | 91 | 1 |
27.830 | 400 | 1 |
28.000 | 4407 | 4 |
28.020 | 375 | 1 |
28.060 | 200 | 1 |
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