Every Dec quarterly is flat compare to the previous September...

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10/02/22

09:33

Post #: 59474987
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Originally posted by Esmer ↑

The most important metric is revenue. The latest quarterly shows that revenue is falling, despite SWF having become an established player in the broker space and despite growing numbers of active traders.

The total number of trades is falling. The number of trades per active trader is falling. The number of trades per customer is less than four for the quarter.

Advertising costs are nearly 20% of receipts from customers.

In my opinion, unless SWF can begin to attract frequent traders then the future for SWF does not look good. Speaking from experience, I think that SWF's current trading platform is hopelessly unsuitable for frequent traders. The only viable solution, in my opinion, is for SWF to do a deal with an established third party supplier of state-of-the-art trading platforms. Based on what SWF has done so far, I consider that it will be impossible for SWF to produce an inhouse trading platform that frequent traders will migrate to, but SWF's inhouse systems development efforts will certainly push up costs.

An as yet unknown is that there could be a turnaround driven by crypto and HK, but I wouldn't bet on it.

Is SWF significantly undervalued? I can't see any value in SWF because I think that the above figures are fundamentally unsustainable. SWF appears to have shot its bolt. I will not be buying back into SWF unless it changes course onto a path that will convincingly lead it to becoming profitable. The next quarterly will be crucial.

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Every Dec quarterly is flat compare to the previous September quarter, then active trades pick up in the March quarter. Follow the trends Essie!

I’m loving how people tend to put a negative spin on things. Good for me as I’m buying up.

SWF Price at posting: 22.0¢ Sentiment: Buy Disclosure: Held
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Every Dec quarterly is flat compare to the previous September...

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