Well catsecret, the Fin Review promotes the views of selected experts in the field that this merger: * is a sensible move that has been mooted for some time, * was purchased at an attractive price for IOOF shareholders, * creates the third largest financial planning business in Aust, * on the other-hand a notion is promoted that synergies may be difficult to see in the merger, * a suggestion that longer term there are shrinking margins.
There are probably other takes in the media (which is where I get my info), however it looks to my mind as if there will continue to be a strong financial planning industry due in large part to the machinations/focus in the area and the realization that charting a course to financial happiness is in most cases difficult to achieve without accessing those in the industry.
That might sound simplistic, but that is my take.
From a charting perspective the sp is looking to break through at $8.50ish in order to create a strong rebound from here. As pointed out before ifl moves slowly, however this merger could see even more reason for conservative investors to nail their colours to the mast, I reckon.
In short I see the $8.01 as a low in the medium to longer term.
IFL Price at posting:
$8.25 Sentiment: Buy Disclosure: Held
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