Yes it’s very cheap, but will probably stay cheap. It does appear to be on the verge of being profitable, based on last quarter. Their platform software appears adequate for the task, but individual HIN model offers low scale benefits, compared to a Hub style of managed account. A flat fee approach tends to attract overly price sensitive types, who are not my favourite type of investor. The performance of the listed I.I. Products is reasonable, without shooting out the lights. Bringing Effie into the mix for running marketing is a good move, wasted talent before.
The new white label with Raas has promise, but takeup at $4m is proving harder than I expected. Margin on this?
The subscriber income is flat, so much free material around these days.
All in all, it should be trading at its lows now, and will grind higher in time, but really needs an injection of a product with more sex appeal (and margin) to break out. Maybe a takeover prospect for someone with the right new product?
I have bought a small amount recently.
INV Price at posting:
11.5¢ Sentiment: Buy Disclosure: Held
