After the dividend is paid Praemium is being capitalized at approx $300 million I believe that is extremely cheap for the following reasons . 1. They will have over $50 mill in the bank . 2. They are going to do a buyback of the stock so they obviously believe that the stock is seriously undervalued . 3. The recent growth of funds under their control has been growing at 25% . 4. The new CFO has had a lot of experience in controlling costs in his previous job so I am expecting costs to fall . 5. The operations overseas has been taking a lot of management time that is no longer applicable . 6. The overseas operations have been also costing a lot of capital to grow the business ,this is no longer applicable . 7. The company has stated that they will be commencing dividends going forward .This will bring in another type of investor now there will be a dividend stream .. 8.Compared to their competitors their comparative valuation is low .I think that a takeover is a real possibility whether it is a overseas company,private equity or HUM /Netwealth I am not sure but I think that in 12 months we will not exist aa a stand alone entity .
PPS Price at posting:
64.5¢ Sentiment: Buy Disclosure: Held
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