I agree with your comments. I got a position much earlier, I've been averaging down for 2 years or so, using profits from more successful investments. At the moment with just marginal profitability and cashflow, the board hasn't organised a buyback. Once this financial year is behind them, the depreciation charge vanishes. They are debt free. New FUA is coming in again and they have an integrated platform. The new MD appears to be on top of the staff morale and us and them problems between two state offices that plagued earlier management. The coming year should see a buyback or small dividend, which must help.
There is a FOMO on other situations, there is an opportunity cost of accumulating a stock thats not moving. But it just seems a very defensive position in this environment, and as you alluded to, the yawning gap between their MC and that of HUB24 and Netweath makes it hard to justify the latter two, which are priced for perfection. I suspect it is priced for failure, which is not going to happen. So a 2 to 4 fourfold gain from here is much more likely over next 3 years, which is why I am still accumulating out of cashflow.
XPL Price at posting:
4.9¢ Sentiment: Buy Disclosure: Held
