SRT 0.00% 19.0¢ strata investment holdings plc

As simple as this?

  1. 752 Posts.
    @shift @forrestfield @3500 @heraclitus and other interested parties.

    There is not surprisingly a lot of opposing views, but having read key posts and the asx announcements it seems it could as simple as this?

    Intiger has been going just ok the past few years with a (2.5%) growth rate, but they think they are onto something, they need help though. They have recently turned profitable, just. However they only have $120k cash reserves and have approx.$880k of payables, a bit dicey. They link up with mw and importantly pc, who is not only from w.a but is well connected in financial planning and can provide an instant pipeline of sales through his existing business.

    While the terms from the outside might seem incredibly one sided, mark simply sees it as the following. He delivers combined npat of $40m in 3.5 years and he's likely to have a significant stake in a business that is worth $100m++. He also gets instant access to $4m+ of cash (which would probably help him sleep at night compared to his relatively skinny balance right now) meaning he can really ramp up sales and marketing efforts and importantly he gets the business networks that come with Matt and Patrick. Currently he has a business that's worth a questionable amount, but probably <$2m based on cash reserves etc. pretty easy decision. Struggle under his own steam or turbo charges right now and is in a retirement position in 3-5 years time. For Matt it's pretty simple, get an idea he believes can be massively scalable, a smart highly motivated CEO on board with a co-director who is plugged into the industry and can provide instant revenue. His $2m investment could easily Disallowed from here.

    As @forrestfield pointed put it costs money to set up and run offshore resources. Our average per month cost, per person is about $2.8k. So multiply that by 58, you easily get a sense of what he had to bring in each month to cover costs. So the thought of cash reserves, well connected directors, a potential massive prize at the end, isn't that a fairly simple choice?

    Doesn't mean to say the sp will go up or down, but the sheer volume suggests plenty of interest. If we get an announcement tomorrow that minority shareholders have sold to srt as per the outlined terms that will be a step in the right direction.

    Cheers
 
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