Virtus (24/06/2015)
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John Hodge
:
Hi Russell,
Many thanks for your reply.
How about FXL?
A stock RM has thought well of in the past and is going through some stock price pressure at the moment.
Is it still a good stock going forward?
Thanks Russell.
Kind regards,
John
Russell Muldoon
:
No problems John. Re FXL the team here is still positive on the business despite the CEOs departure.
Its a strange market sometimes. The CEO was not well liked by investors who therefore sold the stock. Then on the departure of CEO, the reason for selling in the first place, it goes down even further. Jumping at shadows or something more sinister?
We have also learnt that the departing CEO had a skewed focused on business improvement versus sales which may result in lower growth in the future if sales have been impacted by the business focusing on back-end IT improvements for example.
John Hodge
:
Hi Russell, appreciate your update on Virtus.
SGH has been well regarded by RM for sometime.
Given the recent turmoil concerning this company, what is your current view?
Kind regards,
John
Russell Muldoon
:
Hi John. Thanks for your kind feedback. Ive taken a look at SGH in the past but have never owned the shares in the funds given some concerns we had surrounding the the quality of their reported earnings. It will be interesting to see what ASIC comes back with and Id have to argue that whilst theres a lot of negative news in the stock price already and could have a short squeeze if their review is benign, buying shares today is merely speculating on an unknowable outcome and something we dont entertain. Ill await ASICs response.