SGH BLD ASX: Paradice Investment Management’s Jovana Gagic says Seven Group has good track record behind Boral bid

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Mid-cap investor Jovana Gagic says Kerry Stokes’ conglomerate has a good track record in buying controlling stakes, and reveals why she’s bullish on Orica and Pro Medicus.

Already a subscriber?Jovana Gagic is portfolio manager of Paradice Investment Management’s Australian Mid Cap Fund. The Sydney-based firm oversees $14.5 billion in assets.Seven Group has an excellent track record of taking controlling stakes in industrial businesses and maximising shareholder value. For example, since acquiring Coates from Carlyle in 2017, Seven has doubled its earnings before interest and tax.

has been a major turning point and has brought deep operations expertise in chemicals and discipline to the business.Increasing mining complexities and declining grade of ore bodies is a real problem for its customers. To address this, Orica has been making sizable investments into its technology capabilities.

Orica is trading at an attractive earnings multiple with double-digit earnings growth forecast over the next three years. Driven by a focus on discipline and clear strategy, Orica is well-placed to benefit from the expansion into mining chemicals and helping customers run their businesses more efficiently.Pro Medicus operates in the attractive, and growing,. Their best-in-class software is rapidly taking share from incumbent operators whose technology is slower and clunkier.

 

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