@nessy, thank you for sharing the Moelis Broker report. It’s good to see another comprehensive report including some potential risks to the business. I recently added more SLH shares at around $1.60, and I will likely add more if the shares drop back to $1.60 again, unless there are more compelling businesses on sale at the time. There seems to be no shortage of great buys at the moment!

More recently I have been adding RMD, LYL, LOV, ACF, QIP and RFT which I think are all quality businesses and very reasonably priced of late. I’m also ready to add more CSL shares when there are signs of some share price support.

I like that SLH is a founder led business and there was director buying in late August (Cheryl Hayman bought 50,000 shares for an average price of $1.84 per share - $92,000). SLH paid a 4.6% fully franked dividend (at a 40% payout ratio) which should continue to increase with double digit earnings growth expected over the next 3 years. ROE is expected to be 22% over the next 3 years, compared to an industry average of 15.8%. Yet, it trades on a relatively low multiple of 7.5 x FY25 earnings which seems very low for a business with above industry average ROE.

Disc: Held IRL (1.7%)