Folks, worth putting the excitement and pricing debate aside and looking at a macro level as to what is going on. MSP has become much more attractive since the creation of AVA. It remains a reasonable stable for what should become a thoroughbred business stream but unlikely to be anything other than a shadow parent. BQT and FFT have a lot of synergies. I don't know the intricacies of either but at a guess the overlap of overheads must be at least $1m pa. The elasticity of one to subsume the other and generate economies of scale is undoubted. Long term and prospective long term shareholders will note the management overlap and surely this will be significantly streamlined. Huge cost savings. I spent many years in the AVA world and I can tell you Fergus' reputation is second to none. If he emerges as the leader of this business, particularly after having given up a comfortable senior role in the market leader whilst also investing then I feel confident.
My money is on backing the team and I feel if these business streams came together the infrastructure becomes a sensible size and the airstrip for AVA more stable (and expedient).
Those who doubt the valuation should consider that there is perhaps as yet unspoken value on one side or the other which has yet to be declared.
The initial hysteria is rightly playing out however, dont hate the players hate the game. If the MSP management team feel this is a good deal and the right deal then that is good enough for me. Those seeking to block the deal will need to understand the alternative which I think is a longer term play. Personally I am relaxed and no, I don't work there or know anymore than anybody else. I do know how the stock market works and how the security industry operates. A very strong hold.
MSP Price at posting:
3.1¢ Sentiment: Hold Disclosure: Held
