Just Group Share Price (JUST)

Odd to add Just to an income portfolio given its low yield.

Even if the dividend is raised by 15% pa (inline with mgmt expectations for trading), then I would expect the yield to stay low as the SP will also rise.

FWIW I think this will be trading at 200p in 5 years and the divi yield will be 3-4%.

"Bearbull" investor of Investor's Chronicle has just added Just Group to its income portfolio. Referring to the recent full-year results, Bearbull believes these results show plenty of promise: a mix of favourable longevity assumption shifts, rising in-force profits, and a big step up in new business and sales.

Bearbull refers to company's market capitalisation, a 23% premium to shareholder equity, but adds this excludes the present value of £1.96bn in risk-adjusted future cash flows therefore the discount to tangible net asset value is 54 per cent whereas Barclays whose growth and returns look feeble by comparison, carry a discount of just 45 per cent.

This coupled with recent efforts by company's management to fill the valuation gap to other companies in this sector plus takeover speculation has led to Bearbull buying shares at 104p.

The market needs reassurance that the 2023 sales can be repeated and exceeded.

I expect them to add 20-30p to TNAV in 2024….and for the SP to be 120p at the 2024 results….if they can point to additional growth and value added, then 130p is possible.

Please watch the SP as it gets to the 110p mark (as Dormus suggested) . It might surprise you. Fundamentals are more important though.

Charts are a waste of time!