Here is a compilation of my research over time holding SRT. For you and whoever else is interested since its finally moving lol.
1. Holders that attended EGM stated MW quoted he expects 10-15c for SRT based on the acquisition. Of course to be taken with a grain of salt but just something interesting to start things off. I guess this valuation by MW was assuming Intiger manage to hit the milestone of $40m revenue.
Share Price Calculation (Very Speculative):
Take note: P/E is by no means the end all valuation, if anything far from it but should provide an idea of the minimum rather than maximum.
P/E:
I used two sources:
First Source: A business case done on the Fintech industry conducted by mercer capital (http://mercercapital.com/assets/Mercer-Capital-2014-Q4.pdf) which studies multiple IPO and large Financial Tech/Solutions companies.
They came up with the average P/E for Financial Tech:24.6 and Financial Solution:21.2 (as seen on page 2) Im leaning to 25 since we are both Tech + Solution + Hype factor.
Secondary Source: A more general study done by New York University on standard P/E across multiple industries. (http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/pedata.html)
They have a P/E of 26.47 for financial services with an average market cap of 8.53m for the study(low MC suggests mostly new companies which comes more accurate for our evaluation)
I've settled on a P/E of 26 using both sources.
P/E = SharePrice/Earnings Per Share(EPS)
SharePrice = (P/E )*EPS
EPS = Earnings/Shares
P/E doesn’t really work with penny’s and is far from the deciding factor as most of the price is based on potential and hype rather than income. We’ve seen countless penny stocks make multibag runs with no income and negative cash flows.
MW has done the unseen and has acquired an actual revenue generating business, the scary thing is we don’t know how market reacts to a business acquisition as we are more used to see “idea” or “potential business” acquisitons.
What has been Acquired:
SRT has entered a conditional term sheet to acquire a 100% shareholding interest in each of Intiger Asset Management Pty Ltd (ACN 606 729 328) , Intiger Process Enhancement Pty Ltd (ACN 610 159 209), Intiger Asset Management Limited (a Hong Kong Company), HKCN: 2211671, Tiger 1 Limited (a Hong Kong Company), HKCN: 2258742, Tiger 2 Limited (a Hong Kong Company), HKCN: 2258743 and Lion 2 Business Process Inc. (a Philippine Company), PIN: CS201522320 as well as indirectly acquiring 100% of Integra Asset Management Australia Pty Ltd (ACN 162 734 376) a wholly owned subsidiary of Intiger (together the Intiger Group). – From the Ann
In summary, we have:
Tiger 1
Tiger 2
Lion2 Business Process
Integra Asset Management
Intiger Asset Management + Intiger Asset Management Hong Kong
Now to find out what these are?
Tiger 1/2 and Intiger Asset Management Hong Kong are all based in Hong Kong. Something is clearly brewing in Hong Kong? Possibly in the Ann stating “track record of delivering the industry’s first scalable offshore processing platform”, perhaps we are scaling offshore to Hong Kong as well.
Lion 2 is their Philippines BPO (Business Process Outsourcing) company. Which would mean Tiger1&2 would be the Hong Kong BPO using logic. Maybe we will have another big cat to add to the family in the future – Jaguar, Cheetah etc etc lol.
And without delving in even deeper Integra Asset Management is the giant mother company of Intiger where Mark Fischer is also a director.
Essentially we've acquired 5 companies lol.
3. Visual Summary
Full post if you want to look in deeper here: http://hotcopper.com.au/threads/week-ahead-25-1.2685164/#.V01vOrh95qM
This is an older post so I had to work with what I had at the time which was very little.
Ofc picture is slightly clearer now.
I think the main change since now and then is we have Mark Rantall involved.
