I agree, I have held this stock despite being roughly even after a long time, because the business concept makes sense. There is space for a small brand to take on these services, and a great many people will not go to a major, but also wants more depth than a standalone firm offers.
A couple more years would see the price up to around the 1.50 mark, I am thinking. And that would probably need to be takeover price based on forward EPS of around 10c and PE up from current 13 to 15 for premium.
SFG seems to carry two brands, one stronger in WA and one stonger in the east. There are some similarities to WHG from what can be read on the website. I am unclear whether advisors as they refer are internal or external, but a resulting merger would have a huge footprint across the country and would essentially follow the same business plan as now. The merger might block one of the banks or other big players from sucking it up.
Look forward to seeing WHK's responses.
WHG Price at posting:
$1.04 Sentiment: Buy Disclosure: Held
