livewiremarkets Chris kourtis from Elliston capital shares views...

livewiremarkets Chris kourtis from Elliston capital shares views on IFL. This was back in October 24. He thinks it’s a $5.00 stock.

Insignia Financial (ASX: IFL)

Ally Selby: Okay, next up today we have Insignia Financial. It's one of Chris' top picks. It's the old IOOF. Management has been buying shares recently. Why are you buying as well?

Chris Kourtis (BUY): We've been there for probably a year. I'm maxed out. It's my biggest overweight in the portfolio, huge cost-out story coming, with a billion-dollar cost base. This is not BHP. If the new CEO can't cut a couple of hundred million out of the cost base over the next 18 months, I'll be very surprised. They've targeted $65 million net for this year, so there's a cost story coming. I think there's a recovery in earnings. And at the end of the day, MLC is an excellent brand and it's got a compelling valuation at 7.7 times P/E. It should easily do its $400 million EBITDA this year, which is consensus. I think at the minimum, the stock's up 50% from here.