SIQ is trading well under its high price of $13.35 achieved in the FY'18 year. It was priced for growth mainly through acquisitions and cost efficiency gains it seems to achieve each year at around the 10% reduction level.
When I invested no-one knew of the regulatory changes coming in insurance commissions. I had though expected further acquisitions and the continuation of the 10% p.a. efficiency gains.
Of the three factors driving EPS growth only the third element is being consistently achieved.
Therefore in the absence of acquisitions and no big changes in market share a industry consolidation looks like the way to get the SP moving upwards.
Merging with MMS would mean there are still two other large competitors in SGF and ECX and a host of second tier competitors as well.
SIQ Price at posting:
$7.03 Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)