Does MM prefer MMS or SIQ?
Which is the best investment? MMS or SIQ
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Answer
Hi Trevor,
Firstly lets briefly look at the 2 stocks individually:
McMillan Shakespeare Ltd (MMS) $14.18 – this salary packaging business has performed strongly since June, the companies full year FY22 result delivered late in August justified these gains as they delivered a 9.2% lift in revenue to $594.3mn. The companies strong balance sheet has enabled the business to announce an off-market buyback plus its estimated more than 7% yield is clearly attractive to many investors – we like the stock but its not overly cheap above $14.
SmartGroup (SIQ) $5.80 -MM sold out of SIQ above $6.60 for or Active Income Portfolio back in July and we see no reason to hurry back in to this particular salary packaging business although its more than 6% yield is again eye catching.
At this stage we prefer MMS.
