Quote Originally Posted by mark100 View Post
KW, my initial instincts are to avoid after the initial downgrade because they are often followed by further downgrades. I think it was in either the AGM or FY13 result that SIV first alluded to slowing growth and obviously things have deteriorated from there.

My preference at the moment would be for FXL where I have been waiting for a re-entry. It is also under its 200DMA but has re-affirmed its forecast for FY14, made a FY15 EPS accretive acquisition and at $4.20 is trading at 15x cash FY14 EPS. At this stage I would prefer the safety of FXL at 15x after reaffirming its forecast rather than SIV at 13x after downgraded earnings
It was only 18 months ago, SIV was trading on a pe of 10 and was GROWING earnings. I think we have all become too comfortable with much higher valuations.