GWA not priced for the upside

Investors Mutual

Investors Mutual Limited

Simon Conn, Portfolio Manager at Investors Mutual, highlights GWA as one of the small cap stocks he has been adding to his portfolio. GWA is the owner of the Caroma, Australia’s leading vitreous china (toilets) brand. Conn points to Caroma’s strong market position with a share of between 60% - 70%. This allows the company to generate good free cash that can be reinvested in the business. He also says GWA will be a late cycle beneficiary of the housing construction boom. “As starts lead to completions one of the last things to go in is bathrooms. That is going to lead to increased demand for their product.” Conn says a turn in the construction cycle should be a consideration, however, he emphasizes the need to focus on valuation. “It’s a function of valuation and what is in the price. At 15 times and a very lightly geared balance sheet it is not priced for any of the upside.“ (VIEW LINK)


MORE ON



1 stock mentioned

Fund Manager
Investors Mutual Limited

Investors Mutual Limited (IML) is a specialist Australian equities fund manager and was established in May 1998 by Anton Tagliaferro. Based in Sydney, the IML team applies a conservative value-based investment style with a long-term focus.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.