Great analysis. Yes the business model is hugely concerning,...

First 365 Last

Share
Profile

Follow
ReXXar

524 Posts.

80

26/09/18

20:52

Post #: 35865167
Share

Originally posted by theworst911 ↑

Yes i think he talked about it in one of his roadshows. To be honest i dont think of any insurance business to be a franchise, purely because the switching cost is zero, and these days with comparison sites this process is made easy. Even if Warren Buffet suggests otherwise.

With direct insurance, its hard to tell what ASIC will do. If a direct ban on all outbound call happens then all companies including FIG will be affected. There will be no competition because it will be gone. Otherwise what you said is true until a few years later its all back to normal again and competitors enter the market.

With management, no matter how experienced or rich they are, I have seen many companies being run to the ground by changing their business model, enter a slightly similiar but different industry, focus or change to a new market, because they have their egos and believe they can weather thru the storm (sometimes it actually turns out to be multi baggers). Refusing to liquidate when they had the chance, especially if majority of the shares are held by retail than funds.

Expand

Great analysis. Yes the business model is hugely concerning, human behaviour is driven by incentives, since Freedom said they will remove commissions from their sales and retention agents, I fail to see how anybody can incentivise sales staff made up of backpackers who only care about short-term money to fund their next road trip.

I actually send an email to their Investor Relations about this, not surprisingly the only I reply I received is silence.

FIG Price at posting: 9.9¢ Sentiment: Buy Disclosure: Held
1 Upvote

0 Great analysis

Reply

Top Stories

Is oil undervalued?

BOE

Uranium prices on the NYMEX are stable, but ASX uranium stocks are sinking on Friday. The answer lies in Kazakhstan

Week 31 Wrap: JORC rules to get tougher; RBA rate hike chance 50/50; US Fed Sept cut still the quo

VMT

Vmoto sales plummet -50% YoY as weak demand in Europe & China stifles EV scooter sales growth

DVP

Commodity house Trafigura funds Develop Global's copper-zinc Woodlawn play with offtake deal in place

VMS

Venture to sniff out high-grade REE targets at Jupiter project, WA

MGU

Collaboration in a green (steel) future the focus for Magnum and Saudi partners

WGX

Westgold sets its sights on top five producer status through merger with Karora

GRX

GreenX picks up prospective copper project in Germany

NXG

Cost blow-out for Rook I uranium project sees share plummet for NexGen

There are more pages in this discussion • 112 more messages in this thread...

First 365 Last

Add FIG (ASX) to my watchlist

Great analysis. Yes the business model is hugely concerning,...

Top Stories

Is oil undervalued?

Uranium prices on the NYMEX are stable, but ASX uranium stocks are sinking on Friday. The answer lies in Kazakhstan

Week 31 Wrap: JORC rules to get tougher; RBA rate hike chance 50/50; US Fed Sept cut still the quo

Vmoto sales plummet -50% YoY as weak demand in Europe & China stifles EV scooter sales growth

Commodity house Trafigura funds Develop Global's copper-zinc Woodlawn play with offtake deal in place

Venture to sniff out high-grade REE targets at Jupiter project, WA

Collaboration in a green (steel) future the focus for Magnum and Saudi partners

Westgold sets its sights on top five producer status through merger with Karora

GreenX picks up prospective copper project in Germany

Cost blow-out for Rook I uranium project sees share plummet for NexGen

Featured News