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11.0¢ selfwealth limited

Ann: ASX Announcement - response to media speculation, page-17

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danbradster

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13/10/23

13:28

Post #: 70329261
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Originally posted by rheags: ↑

Ultimately it is a win/win for the share price.

Stake have set a short term lower price cap around 16.5/17c you would think while this plays out.

Selfwealth has announced an on-market share buyback, purchase via this mechanism by them is capped at a max price 5% above the trailing 5 trading days volume weighted price so they can slowly push the price up from this 17c mark early next week if they decide.

For stake, they raised the $90m over a 2 year period, last part in 2022. My understanding is they have burnt through most of this and did another capital raise some time early this year, but not sure on that one. Rumor is if it did occur they had to go OS for that raise as they did not get the local support that they had previously had. With last talk of Stake they had $2.8b in equities and $200-250m cash on the books with $20m revenue. My guess is the cash on their platform will have dropped with the interest rate rise and US trading has slowed so the revenue from FX fee is likely to have fallen which is the main source of revenue for them.

I think Stake had hopped that interest rates would stay low, and had planned to have trading run at a loss while competitors, like Selfwealth, ran out of cash since Stake had raised so much money they had deep pockets to be able to sit out multiple years at losses. With the interest rate rise Selfwealth started generating a lot of extra revenue and so does not look like they have any chance of failing in the medium term, so Stake has had to come to the table to try and find some other way of recovering that $90m they raised, and the only way for them to do this is to merge with a competitor. If this goes ahead you can be sure of one thing, Stake brokerage will go up as they are most likely still losing money on every ASX trade, or if making money it would be very small per trade, and they have to start showing some return on that $90m+ they have raised in 3 years.

This could be a make or break move for Stake who appear to have a lot more to gain from this.

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The goal of the buy-back is not to raise the SP, but to buy-back as many shares as cheaply as possible, to cancel them. So the jump in share price works against the buy-back.

$90m raised by Stake quite a while ago, then they want to buy SWF for $40m minus $12m cash balance = $28m. That's a lot of market share for $28m, and users who are less price sensitive than Stake's, possibly having larger portfolios / cash balances too.

SWF Price at posting: 17.0¢ Sentiment: Buy Disclosure: Held
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(20min delay)
Last 11.0¢		Change 0.000(0.00%)		Mkt cap ! $25.54M

Open	High	Low	Value	Volume
0.0¢	0.0¢	0.0¢	$0	0

Buyers (Bids)

No.	Vol.	Price($)
8	202306	11.0¢

Sellers (Offers)

Price($)	Vol.	No.
11.5¢	85250	4

View Market Depth

No.	Vol.	Price($)
8	202306	0.110
4	207556	0.105
7	288283	0.100
1	3263	0.099
1	14000	0.094

Price($)	Vol.	No.
0.115	83250	3
0.120	233666	2
0.125	50585	3
0.130	458400	5
0.135	353756	9

Last trade - 16.12pm 12/07/2024 (20 minute delay)

SWF (ASX) Chart

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Ann: ASX Announcement - response to media speculation, page-17

SKS Technologies wins US$90M award to supply power to international hyperscale data centre in Melbourne

ASX hits all time high out the gate on Friday trades following bullish US inflation data

BHP dips as WA nickel suspended after A$6B hit; losses eased by US CPI and forewarning

Week 28 Wrap: ASX hits all time high; CBA shares' two realities; US inflation hits 3% ahead of China plenum

Bitcoin investors need to know the risks

Infini soars 50% as company reveals it could’ve just made uranium history – redefining what it means to be “high grade”

Almonty locks in govt agreement for tungsten oxide plant in South Korea

Nimy to raise $1.21M to explore 'newsy' WA targets

Immutep reports strong response rate from immunotherapies treating carcinomas

Nanocap Middle Island Resources kicks off Barkly copper-gold drill run – a potential IOCG-style NT project

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Buyers (Bids)

Sellers (Offers)

Featured News

Ann: ASX Announcement - response to media speculation, page-17

Top Stories

SKS Technologies wins US$90M award to supply power to international hyperscale data centre in Melbourne

ASX hits all time high out the gate on Friday trades following bullish US inflation data

BHP dips as WA nickel suspended after A$6B hit; losses eased by US CPI and forewarning

Week 28 Wrap: ASX hits all time high; CBA shares' two realities; US inflation hits 3% ahead of China plenum

Bitcoin investors need to know the risks

Infini soars 50% as company reveals it could’ve just made uranium history – redefining what it means to be “high grade”

Almonty locks in govt agreement for tungsten oxide plant in South Korea

Nimy to raise $1.21M to explore 'newsy' WA targets

Immutep reports strong response rate from immunotherapies treating carcinomas

Nanocap Middle Island Resources kicks off Barkly copper-gold drill run – a potential IOCG-style NT project

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News