Ann: CUP Announcement - Acquisition of Count Financial, page-18

l have never believed in price targets as an investment tool. Businesses either develop, stall or fail based on circumstances confronting them, some predictable, some not. The share price in 12 months' time will be a function of those variables.

in the case of CUP, l believe the acquisition of Count Financial is a huge positive both in terms of business scale and potential earnings. One of the main unknowns is getting to the bottom of what they have bought. There will be quite a few skeletons in the closet, and CBA know it.

l suspect the 12 months after settlement will be consumed by sorting which Count practices can fit into the CUP model and philosophy, and which don't. Expect 50% of the businesses to be kicked out of the group.

Another matter to keep in mind is that all existing trailing commissions will be turned off (under the Hayne recommendations) within the next 18 months. Much of the current revenue stream of Count will simply evaporate if the advisory business has not delivered value to their clients.

I will continue to be a long term holder but have an absolute intention to progressively sell down along the way.

Financial planning is a business that is impacted by the investment cycle as much as anything else, and personally l believe we are deep into the current bull market.

Current prices appear to be very attractive for new investors since the recovery and growth in earnings has not even really started yet.

This stock is unlikely to ever command a high
PE and l expect will be a take over target aftershave privatised, after they have cleaned it up and have relatively predictable earnings. Every business of this type, has ended in this way.

Good luck. DYOR.