Review of LLC position
Hi MM team, Could you please provide an update on your thoughts of LLC. Is it now in a holding pattern and funds are best used elsewhere (I see MTS as a candidate?) Thanks
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Answer
Hi Alain,
A very good question and it sounds like you’ve read our mind! For now, we’re giving it the benefit of the doubt, while we were disappointed with LLC’s report which remained a messy one, even though they are working to simplify the business. The fact they downgraded ROE expectations having only reconfirmed them in December shows how many moving parts they are grappling with. We do suspect they’re at the low point of their earnings, so for now, we’re being patient.
- As you say Metcash (MTS) is one stock on our Hitlist but it has run up recently, and they have a SPP closing on Friday muddying the waters slightly.
