SIQ Vs MMS
Thanks for your newsletter, like your work. SIQ and MMS seem similar to me, why do you prefer SIQ over MMS? Do you see risks to SIQ or MMS if there is a change of government as leasing, salary packaging FBT seems a soft target.
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Answer
Hi Ian,
Smart Group (SIQ) has a lot better track record than McMillan Shakespeare (MMS) in what can be a pretty difficult space. We like their management team, think the stock is undervalued and we think they can drive through more tech in the business to improve efficiencies. On the other hand, MMS always seems to ‘stuff up’ whenever they have the opportunity. Casting my mind back, Labor under Kevin 07 did try and change novated leasing and FBT arrangements. I’m not sure what Labors policy stance is going into this election, I will need to find out, but in short, it is a risk but I have not heard any rumblings about it yet.
