I’ve done a short and profitable trade on IFL in the past on the assumption of the following
Banks are getting out because of conflict of interest. The cost of compliance is too high and the profit is marginal when compared to their income stream
AMP is gonskies, there is no meaningful competitor in this Australia.
This business is based on scale, as an advisor, it is very hard to establish itself without association
those are the merits
my concern is the integration, this is a people business. I personally don’t understand how they can avoid flight risk of key advisors.
The acquisition is high risk, it significantly diluted their existing share on issue with the potentially to permanently destroy it should client mandate is lost post acquisition. This business is built on reputation, if they are confident in its brand. Why pay for it? When you can win client over with quality and performance of service
The question is at what price is IFL risk priced in and what are we missing?
IFL Price at posting:
$3.10 Sentiment: Hold Disclosure: Not Held
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