Over recent weeks the number of sellers has evaporated and the buyers are stepping up.
It is hard to say whether this is merely a temporary renewed interest in a value stock or expectation of a strong 2nd half.
There is no doubt the combination of implementation of the Hayne Royal Commission recommendations and Colonial removal of grandfathered commissions will have accelerated the "clean up" of the poorer Count Financial businesses taken over last October.
COVID-19 will have had all planners communicating with clients that should also strengthen existing and new client relationships.
We should be mindful CBA have announced they intend to dispose of their 35% stake in Count and this remains a significant factor. Whoever takes this line (assuming a single sale) may well consider a full takeover in 6 -9 months time once the FP clean up has progressed and there is greater forward visibility.
We live in interesting times, in so many ways.
CUP Price at posting:
$1.10 Sentiment: Buy Disclosure: Held
