In the absence of any specific financial details, I am underwhelmed by the somewhat modest revenues generated from such a large scale operation and 100 advisers. We are provided with no guidance as to the annual NPAT of the group.
We must trust that the train load full of accountants at CUP know an opportunity when they see one, and can distinguish it from another potential albatross around their neck.
The initial market kick this afternoon, increasing the SP by 11% augers well for next week when more smaller investors become aware of the news.
I do find it curious the group could be acquired eassentially below the cash at bank asset value. Managment need to do a better job at taking advantage of this "Gain on bargain purchase" than they have done on Count Financial Group in 2020.
Time will tell.
CUP Price at posting:
60.5¢ Sentiment: Buy Disclosure: Held
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