Agree on all counts. And thanks for the info on HUBconnect and MyProsperity.
Just to clarify, most of the points I made (corporate costs, accounting flat, advice practices etc) were flagged at the AGM. I wasn't coming up with anything original, just making sure you were aware of what was presented. Presso here: https://www.asx.com.au/asxpdf/20211118/pdf/4533tjkvmln2qs.pdf
I probably came across too negative on the capital allocation. Kevin is a thoughtful capital allocator and having him as chairman and a significant shareholder gives me a lot of confidence.
I'm pretty sure they are thinking about investing directly into advice practices. My memory of the AGM was that this was mentioned. And there is a bullet point on page12: I guess there's an opportunity to buy up a lot of earnings in a highly fragmented market at very low multiples. I just personally much prefer the training and licensee businesses.
For me the smartest deployment of free cash flow would be: 1/ keep growing the businesses we have organically; 2/ find bolt-on licensee acquisitions to build scale (similar to Paragem); and 3/ buy back shares by tender offer (giving Greg and other large holders liquidity and an exit)
I understand that this is super boring and doesn't make a lot of sense for a listed company as it would worsen the liquidity. I get that they want to grow the market cap and liquidity. And (as per my previous post) I really like most of the plans for building scale.
Bottom line is I think we have: * some great businesses * promising opportunities for organic growth and aquisitions; * price of less than 10xNPATA Best opportunity I can see on the ASX.
Thanks your thoughtful posts, you've given me the impetus to have another look at Australian Family Law.
DVR Price at posting:
$1.01 Sentiment: Hold Disclosure: Held