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LNK, LINK ADMINISTRATION HOLDINGS LIMITED
nipper
post Posted: Jul 18 2019, 03:02 PM
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QUOTE
Link’s share price was affected by the Australian federal budget in May 2018, which included changes to rules that will hurt the company's superannuation business. However, this business constitutes around one third of group EBITDA, and we believe the market has overreacted to the changes, which we expect to reduce divisional EBITDA by around 10%. Also, we expect the Australian superannuation sector to increasingly depend upon Link's relatively low-cost administration services, and the likely consolidation of superannuation funds will benefit the company.

The impact of superannuation sector uncertainty has been amplified by Link's acquisition of U.K.-based Capita Asset Services in late 2017, which leveraged the balance sheet and created integration risk in the short to medium term. However, we believe the market is being overly cautious in this regard also, as Link bought CAS from a distressed seller, has expertise in the sector, and has an excellent record of integrating acquisitions. The CAS integration appears to be progressing well, and further good news in this regard is likely to be a catalyst to close the share price discount to our fair value estimate.

Link also owns a 20% stake in electronic conveyancing platform PEXA, which has a first-mover advantage and looks likely to build a network effect in the large Australian real estate conveyancing market. Although many of Link's businesses are likely to deliver only low-single-digit organic revenue growth, PEXA will add a strong top-line growth element to the stock, and we expect synergies from CAS and other previous acquisitions to boost EPS growth in the short to medium term. We believe Link’s low teens fiscal 2019 price/earnings ratio fails to reflect its earnings growth outlook and the quality of its highly experienced executive team.
Morningstar - Best stock ideas July



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Jul 17 2019, 03:48 PM
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In Reply To: macdtrader's post @ Jul 17 2019, 02:56 PM

QUOTE
uploading a chart. Not sure it loaded.
...its there if you click on the thread (hidden when general topics/ Last 25 us up)



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
macdtrader
post Posted: Jul 17 2019, 02:56 PM
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In Reply To: macdtrader's post @ Jul 17 2019, 12:42 PM

Tweezer bottom.
$5.90 target
Tried uploading a chart. Not sure it loaded.
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macdtrader
post Posted: Jul 17 2019, 12:42 PM
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Posts: 47
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Looks like a double bottom being put in at LNK.

 
 



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