SRT (ASX) As simple as this?

Originally posted by ChrisWR ↑

@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 **promotion blocked** 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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Hi Chris,

I don't really have too much more to add than the couple of posts i made Thursday. Regarding members with different opinions; HC, like most populations, takes the form of a Bell Curve; most are in the middle, trying to learn and share ideas. Then there's a % at either end, who are either intent on antagonising holders or trying to justify their investment by attacking anyone who poses reasonable questions.

All depends on your investment timeframe really. We can say for certain that MW has been a reliable creator of s/h wealth on a ST-MT basis. On a longer term basis, creating a successful, profitable business from not much more than a concept is a bloody hard thing to do, hence why it's not achieved very often by anyone. ZIP and NXR are a long way off and VTX, the jury is still out. Fintech itself is a competitive and capital intensive sector, which is why i said you need to factor in further substantial capital raisings, minimum $10M, I'd say. I worked for a large funds manager once upon a time and saw first hand how difficult and rigorous the pitching and conversion process was for fledgling vendors trying to secure new clients. DSX.ax is an example of just how difficult things can be. It's been a lead balloon since backdooring through the Aviva shell, a couple of years ago. This one might be different or it might be the same - time will tell. I would imagine, many SRT holders here will have been holding from earlier days and will be happy to take 2-4 bags if it gets to say 4c. That's probably what i would do too, based on known information and typical trading of RTO stocks.