Hi Navtek, I think this morning was a bit of an overaction tbh....

Hi Navtek,

I think this morning was a bit of an overaction tbh. I thought the acquisition was pretty solid. The problem I think for FLT I think is that it has been a former market darling and usually commanded a PE circa 20ish due to it's high growth profile. I went in for a bit of a trade thinking there might be a special divy, but it looks like they're being rather prudent and using the cash for acquisitions (even though the div was upped to 97cps). Profit growth of 10% and stat profit lower due to write downs, although this was flagged earlier i think the market was expecting more optimistic guidance. Still a great business I think, it's just a matter of what the market think's is a fair price to pay for it. I jumped out as it was a trade (and I wish I hadn't jumped in the first place) but i can see this being a steady hold and/or small move upwards as it goes closer to CUM divvy.

Hope this helps mate, and GL with your hold/trade