I'm a buyer at these levels and I feel the market is overreacting to the demerger of WOTSO.
1. If you value Blackwall's asset management business alone, it is making $4m in profit pre-tax. At current levels, it is trading at < 10 P/EBT.
2. WOTSO was never a profitable business, to begin with. Yes, sales are growing fast but their profit is not. Just as a benchmark, Servcorp's EBT margin is around the 10% mark.
3. Asset management IMO is a much higher quality business than coworking spaces.
- Management fees increase when property prices increase.
- Very minimal capex required to grow the business.
- Very high profit margins (30% to 40% mark). BWF made $9.6m in sales and $4m is profit. If you compare WOTSO, $10m in profit, you can expect $1m in profit.
Just as a comparison in terms of the business model, you can look at the likes of Blackstone.
- In coworking, the price per desk is dropping. In 2017-18 year, Sydney's price per desk dropped by 5% and Melbourne by 10%.
Those are some of my reasons why I'm invested in BWF at these levels. I am not paying $0.80 for BWF but $0.60 yes!
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Last
50.0¢ |
Change
0.020(4.17%) |
Mkt cap ! $83.90M |
Open | High | Low | Value | Volume |
48.5¢ | 50.0¢ | 48.5¢ | $1.504K | 3.009K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 19000 | 49.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
50.0¢ | 33750 | 3 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 19000 | 0.490 |
2 | 35655 | 0.485 |
4 | 45053 | 0.480 |
1 | 20000 | 0.470 |
1 | 20000 | 0.460 |
Price($) | Vol. | No. |
---|---|---|
0.500 | 33750 | 3 |
0.510 | 17000 | 1 |
0.515 | 18000 | 1 |
0.520 | 45000 | 1 |
0.525 | 15036 | 2 |
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