Why would a Slater & Gordon deal with Quindell be good for S&G?

Why would a  Slater and Gordon deal with Quindell be good for S&G?

1. S&G have just bought a hearing loss specialist (see their latest trading update). If you listen to Quindell’s detractors they would have you believe NIHL future revenues are questionable  and Quindell’s NIHL work is worthless.

S&G like Quindell recognise the value of this element of the business.

S&G actions increasing their exposure to the NIHL market provides a very good indicator that others are aligned with  Quindell’s views of the market.

2. S&G H1 presentation stated that Quindell’s troubles had little to do with its legal practices. This indicates S&G have confidence in the Quindell model and it aligns with how they operate.

3. S&G continues to assert their interest in the UK is all about scale. The easiest way they can obtain an additional 7% market share is to purchase QLS.

4. S&G is on 19x forward earnings, so the opportunity for accretion is huge.

5. The S&G share price continues to rise mainly on the expectation of the Quindell deal.

For other reasons why Quindell deal will be good for Slater & Gordon See Here.

Advertisements

One response to “Why would a Slater & Gordon deal with Quindell be good for S&G?

  1. Reblogged this on Quindell Echo and commented:

    S&G Quindell deal will be excellent news for S&G

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s