I just read an interesting report on the Liberty Group that was sent to me. The analysts in the report forecast a target price for Liberty (LGL) of R100 which is a 49% increase from its current price of around R67.
Liberty is a great company with really strong annuity business. Liberty’s repositioning as a financial services holding comany provides investors with assurances that Standard Bank are committed. There is some real exposure to attractive growth prospects in health administration, Africa and non life business. There are also rumours about renewed focus to risk management and capital efficiency.
As we all know, they also have a MASSIVE property portfolio which holds huge inherent value. Bruce Hemphill is also a class act. I must admit, I’m a fan.
I reckon Liberty’s investor day on the 21st of November will provide somegreat insight into where they are and what they are doing. If you are considering taking a 12 month position in Liberty, I would highly recommend the investor day.
If you look at the graph below, Liberty has taken a hiding a probably represents really good value.
Liberty Group 1 Year 3Oct08
this cant be right anymore, there are big bad debts for LL