Some incredible honesty out of UBS hedge fund sales trader Sujit Dey, who admitted in a note to clients on Tuesday that he “didn’t realise Chemist Warehouse just opened an optometrist concept store”.
We point Dey to a recent episode of the ABC’s Gruen which covered the topic extensively.
Dey also outed himself as another fan of the Sigma merger, saying: “I think it will be considered one of the best companies on the ASX”.
“You could argue that it trades at a premium to Bunnings due to its higher margins, franchise model and more defensive earnings stream,” he wrote in a note seen by Street Talk.
“It also has much better total addressable market expansion opportunities than Bunnings. I could CW trading as high at 30-times PE, as the Aussie market loves paying big premiums for great businesses.”
We also extend well wishes to Magellan’s long-suffering shareholders. The stock has gained an incredible 27 per cent over the past month. It only took the board turning over, an airing of grievances and paying a motza to draw a line under the Bolton problem. Magellan’s latest FUM numbers were also eye-catching in that they ticked up, modestly, thanks to a strong month in equity markets.
Investors will be betting institutional outflows are nearing the end and breathing a sigh of relief that some big insto didn’t manage to get its meddling hands on MGF options.
