SDF is not a holding from which I expect instantaneous 40 per cent gains, but it's pleasing that with two weeks to go until release of FY 21 results, the SP has reached 52-week highs on 5, and early in the day, today, 6 August 2021.
Perhaps an exaggeration to claim SDF has a huge moat around its business, REH-like, but the only other listed on the ASX competitor of which I'm aware is AUB with a market capitalisation of A$1.75 billion as against SDF a tiny sliver under A$4 billion.
It will be interesting to hear how SDF is navigating tricky times with small businesses on the east coast under attack from governments that rely on health tsars as their sole source of advice. The latter with their fat taxpayer-funded guaranteed salaries and entitlements do not understand the vital investment and employment-creating role of business in Australia.
While some sole proprietorships or companies failing has always been part of free enterprise/capitalism, under COVID_19 governments think that by giving entitties a few thousand dollars (often with strict eligibility criteria that rule out many from claiming), governments will 'save' businesses from entering administration.
It's hard to see how constant 'in lockdown, then out of it' with Victorian businesses yesterday given 3.5 hours notice of a week-long shutdown is helpful to businesses.
It's in insurers' interests to have a vibrant small and medium sized enterprise sector as they all need insurance. The worry is there'll be less investment in some states due to the difficulty of running a business, so fewer companies to insure for brokers.
SDF Price at posting:
$4.53 Sentiment: Hold Disclosure: Held
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