CGF is still cheap - Having acquired the A$2bn MetLife annuities book for free, which doubles the size of the existing CGF annuities book, we think strong EPS growth for many years is assured as the cash is progressively invested in higher yielding asset classes. The potential value of the MetLife acquisition does not appear to be reflected in the present CGF share price. As detailed in Table on what we consider a conservative sum of the parts basis we value CGF at A$6.00 some 22% above the current share price. While domestic institutions are now broadly market weight the facts are that some domestic institutions carry significant overweight CGF positions, while many are zero weight and offshore institutional investors are strongly underweight notwithstanding CGF is an MSCI stock. We believe CGF is going up because it is cheap and the share register is tight.
CGF Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
