Positive signs for GUD Holdings

by Gary Glover

GUD looks very interesting at the moment. Technically we now have two higher lows established and volume has increased at the recent lows indicating possible accumulation.  From a quantitative view, the stock is trading on a yield near 8.5% fully franked and a P/E just under 14 times which is below where it normally trades on a valuation perspective. 
Two sweeteners exist for this stock - they have paid three special dividends in the last two years so there is some likelihood that they could do something similar moving forward and the comany has also announced plans to buyback up to 8% of their stock on issue, 6 million shares.  Lots to like about this stock at the moment. 
  

Disclaimer

Gary Glover is an Authorised Representative (Rep No. 259215) of Novus Capital Limited ("Novus"). Novus is a holder of Australian Financial Services Licence No 238 168. Novus, its directors, officers, associates and employees each declare that they, from time to time, may hold interests in financial products and/or earn brokerage, commission, fees or other benefits from financial products mentioned in this e-mail or attached documents. Unless specifically stated within this page or an attached document, any information communicated by this e-mail constitutes unsolicited general financial product advice which has been compiled without regard to any investor's individual objectives, financial situation or needs. It is not specific advice for any particular investor. Before making any decision about the information provided, you need to consider the appropriateness of this information having regard to your individual objectives, financial situation and needs and consult your adviser. Any indicative information and assumptions used here are summarised and also may change without notice to you, particularly if based on past performance or relate to a future matter.