I'm a buyer at these levels and I feel the market is overreacting to the demerger of WOTSO.
1. If you value Blackwall's asset management business alone, it is making $4m in profit pre-tax. At current levels, it is trading at < 10 P/EBT.
2. WOTSO was never a profitable business, to begin with. Yes, sales are growing fast but their profit is not. Just as a benchmark, Servcorp's EBT margin is around the 10% mark.
3. Asset management IMO is a much higher quality business than coworking spaces.
- Management fees increase when property prices increase.
- Very minimal capex required to grow the business.
- Very high profit margins (30% to 40% mark). BWF made $9.6m in sales and $4m is profit. If you compare WOTSO, $10m in profit, you can expect $1m in profit.
Just as a comparison in terms of the business model, you can look at the likes of Blackstone.
- In coworking, the price per desk is dropping. In 2017-18 year, Sydney's price per desk dropped by 5% and Melbourne by 10%.
Those are some of my reasons why I'm invested in BWF at these levels. I am not paying $0.80 for BWF but $0.60 yes!
- Forums
- ASX - By Stock
- Ann: WOTSO Demerger Complete
I'm a buyer at these levels and I feel the market is...
-
- There are more pages in this discussion • 10 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add BWF (ASX) to my watchlist
(20min delay)
|
|||||
Last
45.0¢ |
Change
0.000(0.00%) |
Mkt cap ! $75.51M |
Open | High | Low | Value | Volume |
0.0¢ | 0.0¢ | 0.0¢ | $0 | 0 |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
2 | 40473 | 43.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
45.0¢ | 5025 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
2 | 40473 | 0.430 |
1 | 4000 | 0.425 |
2 | 17746 | 0.410 |
10 | 103439 | 0.400 |
2 | 7500 | 0.395 |
Price($) | Vol. | No. |
---|---|---|
0.450 | 7954 | 2 |
0.455 | 15500 | 1 |
0.460 | 36460 | 2 |
0.470 | 15000 | 1 |
0.480 | 14731 | 1 |
Last trade - 16.00pm 08/10/2024 (20 minute delay) ? |
Featured News
BWF (ASX) Chart |
Day chart unavailable