The recent market correction has not helped, however management is first class; they have no debt and a dividend yield of above 7 per cent. With a solid balance sheet and further consolidation in the private insurance space expected, it has the capacity to increase its dividend or make a sizeable acquisition. Uncertainty surrounding the company’s LAMP project and the Malaysian government’s instructions to move all the waterleached purification from that project is a negative. The company is down Struggle St. Competition is hurting margins. Despite the 22 per cent fall in the share price this year, further downside is expected.
$5.14 $2.38 $1.68 $2.44