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MM thoughts on SIQ, PGH & MFG

Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

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Question asked

MM thoughts on SIQ, PGH & MFG

“James, If you have time could you give me your appraisal of the above 3 stocks. I am currently considering selling all 3 and was not after an in depth review just really a view on their likely potential upside ( if any)  from Friday’s close or if at their current prices they are “ out of steam “ . I see that SIQ is already over Morningstar ‘s TP of $7.05. Many thanks for all your excellent efforts in the current wave pool market !!!” - Cheers Mike D.

Answer

Morning Mike,

1 – SmartGroup (SIQ) – looks great it’s actually accelerating higher, I would be inclined to stay long with stops under $7.05. I’m not a big fan of Morningstar valuations.

2 – Pact Group (PGH) – this has been a tough story over recent years but I like the risk / reward here with stops ~10% lower.

3 – Magellan Financial Group (MFG) – probably our most frustrating position in 2021, the risk / reward looks ok while the stock can hold above $47.50.

While MM remains bullish we will tend to give positions the benefit of the doubt
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Magellan Financial Group (MFG)
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