PFG is an interesting investment case at the moment. I think the...

PFG is an interesting investment case at the moment. I think the stock is becoming increasingly compelling given:

- We should finally see some positive momentum in wealth earnings, as people have been falling over themselves in the past few months trying to get advice ahead of the super tax changes
- Historically, the company has been run (and its capital managed) to benefit the majority s/holders (and staff). I think this has changed given the new Chair/Board members, and the sale of a significant shareholding to MPR
- MPR looks like a good acquisition. It diversifies the group into new consulting/capital advice revenue streams, and the owner appears quite entrepreneurial and has a big stake in the combined group.
- Debt is under control and M&A growth remains a key growth avenue
- I think the threat of robots eroding this business is overstated. Automation will likely erode individual account revenues over time, but this will largely be offset by lower costs. Accordingly, as long as PFG keeps up with these trends, then the risks can be managed. After all, most retirees appreciate the conversation with their advisor as much as the advice and that value shouldn't be underestimated.
- The current share price doesn't factor in any upside.

Given the above, I am expecting a decent full year result, with potential for the already healthy dividends to grow. The one thing this company needs is some instos on the register to provide some liquidity and valuation support, and a good set of numbers might draw some in.