IFL - who's got the goss?

[stephen]

I've had my eye on IFL for some time. I didn't buy in the end, because I have trouble figuring out how much of their earnings are real and how much are a consequence of revaluing existing assets. Their growth and ROE are either ho-hum or spectacular depending on your view of these revaluations.

They've had a very steady rise the last week or so.

Has anyone else been following them? I confess I'm still tempted, but I won't be buying until I'm confident I've untangled their books correctly.

[Lizard]

Stephen, I've got IFL from around $7.18. But to be honest, am not sure I've untangled the books at all well either. Agree totally with your comment - about them being either ho-hum or spectacular depending on interpretation...

Anyway, have to admit that they baffled me, so decided to hold them as a trend-trade in a reasonable sector and review it once I had another 6-12 months of accounts.

[Lizard]

Accounts out yesterday. I didn't think they were exceptional, but the share price has gone nuts today - particularly with the clarification of earnings growth expectation of 15% for the coming year. Now $9.20, though I'm not sure why?!

[COLIN]

Insurance/Wealth Management companies don't seem to get much mention on ST, with most punters besotted principally with the mining stocks. A couple I invested in, in the second half of last year, are IFL and CGF, both of which have shown quite spectacular progress since last March. Now there seems to be some speculation that ANZ are interested in taking over IFL, hence the good upward spurt today, no doubt. There is a view that rationalisation of the industry is taking place, as witness e.g. the AMP/AXA/NAB struggle. The high level of required superannuation contributions across the ditch is a great generator of investment funds.

[macduffy]

I'd suspect that there are quite a few IFL shareholders around here, given that AUW, the funds management arm spun off from Tower a few years ago, merged with IOOF (IFL) last year.

As mentioned, compulsory super underwrites the attractiveness of the industry to Aussie investors and the tussle between NAB and AMP for AXA's Aust and NZ businesses adds takeover speculation to the sector. IFL has benefitted from this with its SP rising over 160% from a low of $2.40 in March to a current level around $6.40!

Disc: I hold, courtesy of the Tower/AUW/IOOF business.

[macduffy]

It's hard to believe than no-one seems interested in IFL, considering the Tower/AUW connection but I'm pleased to report that it gained 6% today to $7.33.

Immediate cause is probably the bid for Prudential although yesterday's FUMS report, which showed a steady increase in these numbers, may also have had an influence. The proposal to buy one of NAB's management platforms seems to have been put on the backburner now that the NAB/AXA merger is off but the possibility of a deal there may recur.

I'm particularly pleased about this stock because it's one that I've considered selling a few times at prices well short of $7.33!

[pierre]

I'm certainly interested in IFL though, like you macduffy, inherited them through Tower/AUW and have never known enough about the company to bother about buying any more. It's been a volatile performer over the past couple of years and would have been a great share for an active trader.

However, I'm happy to sit on my effectively free investment in IFL, add the divies to my Aussie bank account and enjoy the ride on the price.

Where did you read about the Prudential bid - haven't caught up with that news.

[COLIN]

It's hard to believe than no-one seems interested in IFL, considering the Tower/AUW connection but I'm pleased to report that it gained 6% today to $7.33.

Immediate cause is probably the bid for Prudential although yesterday's FUMS report, which showed a steady increase in these numbers, may also have had an influence. The proposal to buy one of NAB's management platforms seems to have been put on the backburner now that the NAB/AXA merger is off but the possibility of a deal there may recur.

I'm particularly pleased about this stock because it's one that I've considered selling a few times at prices well short of $7.33!

McD: Take heart, others are interested! I have held since Aug 2009 when I purchased at $4-64. They are part of my core longer-term holding, being of a much more stable nature than many others I hold. Like you, I have also been tempted at times to sell, but have held off. Good to see today's rise.

[OldRider]

I hold some of these, acquired same route as macduffy, but doubled holding in June 09, IRR since Feb 2005 formation of AUW
19.33%, close to 100% gain since merger in May 2009.
Present CGVI 25 with div return close to 5% so not looking to sell at the moment

[macduffy]

Where did you read about the Prudential bid - haven't caught up with that news.

Sorry, pierre.

I meant Perpetual of course!

Cheers