Some background about SFG (Sequoia Financial Group)
# Privately owned enterprise.
# Financial planning ,Wealth management ,Superannuation administration ,Home lending ,Insurance.
# Interest in Nobleoak Insurance....One of the oldest insurance companies.
# Splurging for expansion in the Last few few months....Must have some surplus cash......Took 6.13% in GMY (moneyfields Ltd ,a small profitable bank in WA)......Acquired 20% of MWS ,which will be followed by merger/reverse T/O where it will have 70% at 0.0075 implying $22m MC for the enlarged outfit (Not $9m as the market is paying now at 0.003).
# It is a profitable outfit with $20m revenues in 2013.....MWS generate $10m in reveneues.
# Synergistic benefit by having MWS/Nobleoak/Moneyfields with cross fertilization & magnificent organic growth prospects , in addition to other bolt on acquisition.
# Compare it to PPS (a superannuation administration software outfit that is valued at $77m with Price/Sales ratio of 5......Post merger MWS will have an MC of $22m, P/S ratio of of 0.5.....This is 90% discount to PPS.
At 0.003...MC $9m , the discount is twice as big.
Zero downside risk at current price.
SEQ Price at posting:
0.3¢ Sentiment: None Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)