And don’t worry about the lack of buyers today and lack of hot...

And don’t worry about the lack of buyers today and lack of hot copper chit chat, it’s been like that forever for bfg.

eventually people will progressively wake up to the incredible fundamental value, growth m, rich cash generation, zero debt, innovations and 5 year track record and the p/e will expand further.

the p/e used to sit around 10, recently it has been more like 15-17 so at a p/e of 17 x eps of 14.6 you get around 2.50.

im not sure it will get there in a hurry, but I think it will break through 2.00 this year. Even if that’s all you get, that’s 10% cap gain and towards 10% divi grossed up and that’s a very conservative price target for bfg over the next 12mo as per my previous post.

I find this is a stock I lose zero sleep over, regardless of the fluctuations as the fundamentals support the valuation so strongly so your capital is as safe as it can be in any small cap financial (which is of course a high risk space).

compare bfg’s 1% rise with my PME shares that have half the npat and yet they rose 15% today just on a 5 year deal, giving a market cap 5x that of BFG for lower revenue and lower profits.

it just proves that the market has its darlings which get it overbought by small speculators, traders and large funds alike, especially once a stock enters the asx200 so the big boys can play like with PME. The market meanwhile thinks bfg is a small financial bank with the competitive disadvantage of being small in a market of big banks, but they don’t realise that bfg is part financial company but more fintech, as they themselves have tried to explain. Their IP platforms, brand and loyal client base as well as their nimble innovative culture are where their true value lies, and this is currently being valued at around zero according to their multiples.