I think you've "picked on" the wrong company to prove your point in IAM.
Taking a simplistic view of that particular company in terms of what it does only masks from view how "appreciated" it is by those willing to pay for that service.
What's a bottle of water worth ? Now what's that same bottle of water worth IN A DESERT ?
Purely in terms of FA the overriding factors are these....
1) Four targets were set (nominally M1, M2, M3, M4) to be achieved during the period up to July 2019. These were in terms of NPAT culminating in a cumulative $40,000,000 by that date.
2) To achieve that figure in the 3 year period it requires a TOTAL of somewhere around 400 Financial Planners (FPs) signing up.
3) At this point in time approximately 60-70 have signed up in "early" smaller clients. This was before the "big guys" showed interest.
4) Within the next 2 months... possibly as soon as Xmas.... a single signature (Sentry Financial Planning) will add 400.... I'll say that number again.... FOUR HUNDRED....new FPs to the number CONTRACTED. Sentry have meticulously gone through all 19 compliance requirements including sending board members overseas to view offshoring facilities (doesn't sound like they are just kidding does it ?) and are apparently ready to sign.
Sentry ALONE achieves all four targets M1 to M4.
5) As if that's not enough, another TWO FP companies "way larger than Sentry" are clamoring for MOUs to be potentially signed in the next 4 months. These, if signed up, will bring an additional 800-2000 FPs on board. I'll say that again.... EIGHT HUNDRED to TWO THOUSAND new clients. On top of these potential clients there is a 13 MONTH waiting list of small and medium sized FP businesses looking to trial and sign up.
6) It's been calculated that reaching target M4 (400 FPs) will see a share price in the 35-50 cent region.
The Financial Planning industry NEEDS IAM and it's contractually guaranteed 40% savings in back room costs. The flood of clients looking to sign up NOW proves it.
Do you still think that, at 8 cents IAM is overvalued ?
