CGF 1.51% $6.73 challenger limited

You're welcome. In terms of why anyone (with or without...

  1. 1,495 Posts.
    lightbulb Created with Sketch. 1358
    You're welcome.

    In terms of why anyone (with or without "muscle") would want to short CGF, beside the ongoing RC saga, here are some possible additional “thematic” reasons:

    1) Falling stock/property prices will hurt the value of CGF’s Life investment portfolio.
    2) Rising yields will lower the value of CGF’s fixed-income assets and increase CGF’s cost of funding.
    3) The extension on CIPRs will slow down CGF’s forecast growth path.
    4) The arrival of new competitors in the Australian annuity industry will take market share away from CGF and compress margins.

    So, there is no shortage of “negatives” that market participants may want to focus on, if they are so inclined.

    But, when it comes to deciding whether I want to take the long or the short side of a position, I personally feel that the most important thing is to determine what the current price is already factoring in.

    And in the case of CGF my view is that, even under very conservative assumptions, the current Market Cap is more than justified.

    Cheers
    Last edited by Transversal: 01/11/18
 
watchlist Created with Sketch. Add CGF (ASX) to my watchlist
(20min delay)
Last
$6.73
Change
0.100(1.51%)
Mkt cap ! $4.651B
Open High Low Value Volume
$6.69 $6.83 $6.64 $5.426M 803.8K

Buyers (Bids)

No. Vol. Price($)
1 4064 $6.72
 

Sellers (Offers)

Price($) Vol. No.
$6.78 100 1
View Market Depth
Last trade - 16.10pm 09/08/2024 (20 minute delay) ?
CGF (ASX) Chart
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.