Simon Conn, Senior Portfolio Manager at Investors Mutual, thinks GWA Group looks attractive following the change in management and asset divestments. GWA Group owns a suite of brands, including Caroma & Dorf, which supply building fixtures and fittings. He says management has been distracted in recent years with divestments and internal issues, but with new management in place and a “strong core business,” they’re well positioned for a low-growth market. They’ve “led the world with dual-flush and water saving technology… and they’re innovators and leaders globally.” At a PE of 12-13 times, and a 6.5-7% fully franked yield, he says it’s a “very solid business, produces really good cash flow.” In the video below, he shares his market outlook and another stock idea for a low-growth market.


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