A prominent fund manager has revealed the latest ASX share that she has bought for her fund.
The share price for insurance building repairer Johns Lyng Group Ltd (ASX: JLG) has dropped almost a quarter year to date.
And Tribeca portfolio manager Jun Bei Liu this week disclosed that her fund took advantage of this price weakness.
"I really like this company," she told Switzer TV Investing.
"It recently got into my portfolio."
Bad weather is not bad news for this ASX share
Unfortunately, Australia's east coast has been battered with excessive rain for much of this year.
But for a company whose clients are insurance companies, this provides a surge of business.
"No analyst [can] forecast those natural disasters," said Liu.
"Once you have the natural disaster, it takes a couple of years to build."
This has a snowball effect on Johns Lyng's financial performance.
"It's a constant upgrade cycle. Last year it upgraded 12 times, and this year it's already done it three or four times."
The market has appreciated Johns Lyng's worth in recent times, sending the stock price up a stunning 450% over the past five years.
But this year's sell-off has made it cheaper than it has been for quite some time.
"The share price cratered because it was expensive. But now it looks pretty good value."
More tailwinds: acquisition and strata
Many of Liu's peers agree with her assessment. According to CMC Markets, seven out of eight analysts are rating the stock as a strong buy.
QVG Capital analysts, in a memo to clients last week, boasted that they hold Johns Lyng shares.
They said:
Looking forward into FY23, Johns Lyng Group will benefit from a full year contribution of their US acquisition Reconstruction Experts and a full pipeline of 'cat' [catastrophe] work, given the sequence of extreme weather events experienced over this financial year.
As well as all the rain, Liu identified another tailwind that could boost performance even further.
"They just recently got into strata, as well, for the large buildings," she said.
"It's just been incredibly consistent in terms of earnings."
