Hi Paul,
I have a small holding of AHG in my SMSF (in pension mode) and am not really a high risk taker, but I do like this growth stock. I was wondering your opinion about adding to the holding via the share purchase plan, and your opinion on the stock?
A: AHG (Automotive Holdings Group) is in Tony Featherstone’s takeover target portfolio. The SPP at $4.52 is a small discount to the current market price.
The institutional offer was well supported, and the stock is trading on a forecast multiple of 14 times FY17 earnings (yield of 5.1%). This is not particularly demanding.
The brokers like it – with a target consensus price $5.04
Given these factors, and the track record of the company, I would be inclined to participate.
