I agree the market response was a massive over reaction and so much bad news re Brexit has already been factored in. I dont think it is the Westpac issue. Westpac have had plenty of opportunity to sell above these current prices and have held off. I think they would be looking for much higher prices than current market levels.
The way I see it is that you have a company that has grown its dividends pershare 6 years running. Has doubled FUM in the last 4 years from $50bn to $100bn, has a phenominal ROE of 26%, ROA of 25% a 25% franked dividend yield of above 5% and is on a PE of 13.6 times FY18 forecast earnings. Bring it on.
This one is an earnings compounder and a company to be bought at these levels.
PDL Price at posting:
$9.13 Sentiment: Buy Disclosure: Held
