This further 3.93 per cent rise in expected FY 21 NPAT (at maximum: i.e. $127m to $132m) is very welcome, coming on top of what was previous good news.
I bought SDF and separately JLG a small number of months ago as I perceived both were in growth sectors (despite the negative news around insurer QBE) and have been very pleased with JLG's performance.
However, my research must have been deficient as I didn't know SDF had a JLG stake until this morning.
I love undervalued companies that analysts by and large ignore when they concentrate on the overrated and overhyped stocks like QAN.
To some small extent at least, SDF and JLG have moats around their operations.
It must be difficult to have the technology and geographic spread of insurance brokers of SDF. With extensive media publicity about individuals in bushfire and flood-prone areas who don't have sufficient or are finding it harder to obtain insurance at an acceptable price, in the household sector there must be a further opportunity for brokers whose knowledge of insurance options is much greater than individual consumers. Ditto for small businesses.
JLG's expertise in fixing businesses and homes after events like this or burglaries/home invasions/storm damage must be pretty hard to match around Australia.
SDF Price at posting:
$4.08 Sentiment: Hold Disclosure: Held
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