Although shares in Veda Group Ltd (ASX: VED) have performed strongly in recent weeks, they still remain at a heavily discounted price compared to their $2.55 all-time high, recorded in March this year. The shares are today trading for $2.07, nearly 19% below that peak.
Aside from the discounted price, here are three other reasons to put your money on the table with Veda Group…
- Rich History. Over its 46-year history, it has stored records on 20 million individuals and 5.7 million businesses giving it a very dominant position in its industry. It also boasts a strong track record of growing earnings and revenues – it has grown revenue every single year since FY1993 and looks set to do so again this year.
- Defensive. Given the nature of its business, Veda is quite a defensive stock. As turbulence rocks the economy, businesses become increasingly focused on strengthening their balance sheets and taking additional precautions to ensure their customers will be able to repay any credit extended to them. This was evident even through the GFC when revenues continued to grow for Veda.
- Growth. Participating lenders supply information to Veda Group every time an individual or business applies for credit, thus allowing Veda's database to continually grow. This will also be the case with the introduction of the Comprehensive Reporting regime which will allow credit bureaus like Veda Group to collect a broader range of data. This will include the type of credit account opened as well as a history on all repayments, thus optimising Veda's offering. In addition, there is a possibility of further international expansion.
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I'm a happy owner of Veda Group shares. When I purchased them, they were trading at $2.09 apiece and while that doesn't represent a "bargain" as such, it was a price I was more than willing to pay for such a high quality company with strong growth prospects.
