I've read this over and over again... CAF have basically...

I've read this over and over again...

• CAF have basically converted 88% of self-licensed advisers to the new fee model. This means those out there holding an AFSL see value in CAF's services.

• ..."After a phase-in period, the services we provide to our advisers will be fullyfunded by transparent fees paid directly by the advisers’ firms.” This basically says services will be fully funded by revenue. Which means it's profitable, not loss-making.

• Because CAF have 14% reach in the marketplace, this implies that those who don't have an AFSL (and use CAF's AFSL), is likely to see value in CAF's services and simply need to pay extra to be on the playing field as an Authorised Rep. As previously reported, AR numbers have been steady at CAF (growing at Alliance Wealth, declining at PIS).

• The competition out there e.g. CUP etc is asking for up to 40% equity stake in the adviser's business while CAF is not.

• This type of revenue stream is steady, recurring and has network effects. It also has operating leverage.

• Look at slide 9 of the 1H19 presentation, only $6m in rebates was received across 469 firms (self-licensed + ARs). Even if that disappeared on 1 January 2019 i.e. the beginning of 2H19, CAF still has sufficient liquidity. The language of the market update does not come across as negative and would be misleading if the company were in financial distress. "Completion of the transition is timely, because fee-based revenue is required to offset an accelerateddecline in Centrepoint’s rebate revenue."

• Look at slide 29/30 of the 1H19 presentation. If they are now adding advisers at record pace, albeit on a quarterly basis....this is still revenue and profit GROWTH. I'm aware Viridian and Count have dumped advisers and CAF is clearly catching some new business. But will this trend disappear overnight? Especially when the competition is asking for an equity stake?

I don't get why this stock isn't up to 18cents or so. That would imply a still ridiculously low $10m ex-cash valuation for the business, when it has c$4Bn under mgmt and advice, has a recurring income stream, is now growing at a record rate etc.