Chris Stott, CIO of Wilson Asset Management, says his current portfolio position reflects a cautious view on Australian equity market. “We are still seeing in the overall market downgrades to earnings and the market is trading on a PE above 16x – which is greater than two standard deviations above its long term average.” Stott says while the low interest rate environment bodes well for equity valuations in the long term, he remains cautious until there is clear evidence of earnings growth. Against this backdrop, Stott highlights the recently listed Smartgroup (ASX:SIQ) as one Company where there is value on offer. “It’s a really strong business with a long term CEO who has delivered great results over a long time period.” Stott says a recent earnings upgrade, reasonable valuation and a potential catalyst for the stock to move higher make SIQ an attractive opportunity. Click here for more detail in the full interview. &feature=youtu.be
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