Finch2,Dont get me wrong, I think this business is an amzaing...

Finch2,

Dont get me wrong, I think this business is an amzaing investment opportunity....just not sure it wont get cheaper in the short term.

The business will essentially prove to be a cash cow. We operate 2 leanding businesses in Sydney as I have mentioned before. The metrics in the industry are unlike any other I have seen.

Mortgage books are bought on 2 times recurring revenue at the high end. Which means you essentially are getting a 50% per annum return on capital invested. We operate a financial advisory business where the sale value is 3 times recurring, so a 33% return on capital each year. Hence why we are actively always looking to find acquisitions in both those markets as there really is no better return on capital that I can find.....beats the sharemarket hands down.

Hence I really believe that FFF has all the makings of a massive business in years to come, they effectively have a national franchise business with very little competition. I do think they have rushed made too many purchases over the last 24 months...so the market is awaiting proof that the cashflow is coming in and effectively used to pay down debt....once they can get their capital management down to a healthy position I am sure we will see a re-rating.

I have also mentioned before that I think the CEO is a light weight and will be ultimately replaced by a more seasoned operator.

Best of luck with your position.

Kiril