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Super Investors Might Find a Super Investment in Moneysupermarket.com

By Malcolm Stacey | Wednesday 19 October 2016


Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.


Hello Share Squeezers. I’ve been having fun lately trying to get cheaper car insurance. You know how it is - the renewal quote is always a heck of a lot more than your current policy. Though they always forget to remind you what you first paid.

Anyway, I always go straight onto a comparison website. And this time I got 50% off my renewal price with a different insurer.

My favourite comparison site as a customer is moneysupermarket.com (MONY). And I rather like the investment prospects, too.

Look what it has going for it. A snappy brand, backed up by some clever tv adverts, and constantly improving technology which helps to enhance its websites, which are already better than before.

But the big bonus is that the government is now on the side of comparison websites, urging people to use them to switch electricity and gas providers. Soon they may also be helping us to switch water companies, something we cannot do now, but which OFWAT is seriously considering.

This is one of those promising outfits whose record, for four years at least, is of rising pre-tax profits. Such consistency is rare these days and should be a sign of encouragement for new investors.

The company collects rather a lot of cash and has made promises to return some of this pile to shareholders, if this happy pile of dosh becomes even larger. Quite an incentive, you agree?

It yields nearly 3%, which is ok and the P/E ratio is 24 which is not great, but the attraction for me is the potential. In my humble view, anyone who does not use a comparison website to get cheaper insurance is either stupid with money or a waster of time, so their popularity can only rise.

And now it’s time I 'insured' I get a seat in the Punter’s Return.


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