Scoring goals

What a great announcement by Cashwerkz today. This sounds like a material deal in every respect. The CEO of Cashwerkz calls the partnership with Praemium a "strategic fintech alliance". Premium looks like a pretty good ally as it "reports on more than $140 billion of investment portfolios and assets".

But, there is more to come: "Premium are also exploring further adviser efficiency opportunities with Cashwerkz across each of the other managed accounts solutions we have on the one integrated platform for custody and non-custody."

Cashwerkz is a small company - at least for the time being - with a market cap of A$34m. However, it has a unique technology that is being validated by, in this case, a new partner which reports on funds totalling $140 billion. Furthermore, this technology exists due to significant market inefficiencies not only in Australia but in other major jurisdictions, and yet this is apparently the only technology that can iron out those inefficiencies. In short, it is a real technology solving a real market need (and not some piece of fluff parading and masquerading as a substantive technology, of which there are quite a few on the ASX).

A big tick to the management of Cashwerkz, because whilst the share price has been trending sideways, management has clearly been laser-focused in running the business, adding new clients and investing in the platform technology. I also notice in its latest presentation that, finally, it has begun to take the first steps in exploring international opportunities. I personally would wish to see management explore these real offshore opportunities, but I am also sympathetic to its desire to get it right first in Australia.

The share price is rightly up 10% in 2 days on di minimus volume. To the person nibbling I have some friendly advice. Stop bottom-feeding and pay up to get set or you are going to miss your chance.

Cheers.