Thoughts around SIQ please

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Question asked 09/03/2024

Thoughts around SIQ please

Just wondering whether you could give us your thoughts of what is happening beneath the hood at SIQ It has put on around 67% for the 12 months which is great ...but has recently dropped around 9% in the last few days (written 5/03/24). Looking at the trading there appears to be a lot of cross trades and institutions jumping in and then out of the stock making it volatile but what are the fundamentals beneath? Can it be held for the long term or is it better to take profit on one of its runs and let the institutions push and pull at it? Many Thanks

Answer

Hi Don,

The growth in SIQ has been underpinned by take up of EV’s and the associated salary packaging/novated leasing that flows. We have seen weaker data on EV’s during the week, while SIQ also went ex-dividend for a combined 32cps on the 6th, made up of 16c ordinary dividend and 16cps special. Volumes have not really been higher than usual so we wouldn’t point to a large change there, and no top 20 holders have changed positions this month according to Bloomberg filings.

At this stage, fundamentals remain solid, but things can change of course.

chart

SmartGroup Corp Ltd (SIQ)

LAST UPDATED 08/03/2024 16:02

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