Ann: WOTSO Demerger Complete, page-16

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!