Business Services Industry

High rewards for low multiple theory.

Australasian Business Intelligence, November, 2005

Byline: Richard Hemming

Nov 20, 2005 (The Australian Financial Review - ABIX via COMTEX) -- Ross Wilkinson and Cynthia Jenkins, of fund manager, Invesco, invest in companies trading on low price earnings multiples. The groups in which they invest must also have the potential to achieve higher earnings than generally anticipated by the market and to ultimately be re-rated and trade on a higher

price-earnings multiple. Wilkinson and Jenkins aim for a return of at least 50 per cent from their initial investment over a sustained period. As such, it is not uncommon for only 25 per cent of their portfolio to turn over each year. The duo are currently taking an...

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