Here is how I see the current opportunity, 20% upside in the...

Here is how I see the current opportunity, 20% upside in the short term, (by deal completion).

I have been mulling over the net residual cash of around $78 million that will be on balance sheet with the remaining Commercial business but have decided to ignore the cash as Mr. Market seems to ignore the cash when placing a value on the company.

Using the current P/E of 7 times for the residual business based on a NPAT of $25m (and ignoring the cash of $0.16 per share) I get to a post deal value of 98cps, a 20% upside for here. If as touted the Commercial biz is in a growth phase then it may trade higher post the deal.

Also given that LFS trades on a dividend yield of 8.5%, I see little immediate downside there, and in fact the rhetoric and projections should offer upside potential. There may be some short term selling pressure following the distribution of the LFS by HUM.

Anyway, I'll continue to acquire stock.