Ann: Heads of Agreement with Sentry Group-IAM.AX, page-175

What a day – I’ve managed to get up to speed on all the comments on SYT and IAM. So here’s my take:

1. Announcement of the Sentry: This is good for a number of reasons:

1. The specific nature and details were a bit of a surprise to the market. The price lead up indicated positive news was coming, but nothing specific had leaked to the market that anyone knew about it.
2. Sentry is a decent size business with the added benefit of not being too small that the revenue would be immaterial and not too big that it still allows IAM to chase bigger fish.
3. Whether intentional or not, but this is a good PR move by IAM to reveal HOW they onboard with their clients…i.e. not big bang, but rather a slow moving, dating period where both parties can find their grove before locking themselves into anything too heavy. Other FP practices would be taking note of this.

2. The deal: I expect the deal to be pilot scale only (i.e. handful not all 400 planners) to start with a very select group of planners and practices within the Sentry group. Essentially, IAM would be part of this process to ensure “advocates” become early adopters before expanding this out to the broader Sentry Group.

3. ASX glitch: Not sure what to make of this. Good because it creates additional FOMO and puts a nice stop to over-pumping. Bad because it completely stopped any momentum it had and will need to somehow regain this tomorrow.

4. From here, I anticipate more deal flows and announcements to be made between now and Xmas of similar scale/size. Despite no revenue figures being released, this will come after IAM prove themselves during each 6 month period with each FP practice. On the $2,000 per month minimum, I believe this is used to keep the smaller jobs out of their model, muster greater commitment from those that do choose to use their services. The $2,000 is also inclusive of any work IAM actually perform for the client (e.g. 40 SOAs at $50 each). My personal believe/hope/plan is to follow IAM over the 3-5 year time horizon until its MC is at least $500m.

5. Thanks to @TheArchitect and @Glyco for posting the Sentry article on BI and forecast/projects (modelling). Great information sharing and one of the main reasons I believe IAM is one of the most impressive, well-researched and balanced forums on HC. Keep up the great work by everyone (too many to list) with their solid research.

6. For what is worth: Website views mean very little to success of a FP practice, file names of announcements mean even less relative to the nature of the announcement itself, make sure @relik1 donates to the charity of his/her choice.

Cheers,

Bodhi_Trader