OVH 2.27% 22.5¢ onevue holdings limited

Comments From (TEK), page-4

  1. 4,503 Posts.
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    Why not do your own research - I am not licenced nor inclined to put out there what I believe.

    To give you part of it as I see it in summary form without detail:

    1. The Diversa business was already break-even and had a significant tax loss. It was cash flow positive at the time of acquisition and held the market segment that would add to OVH that being the trustee business. It had small other components that could be synergisticlly added to OVH and the ultimate savings were one thing but even bigger was that the combined business would be able to do far more.
    2. The OVH FundsXchange could be a game changer as it would or could increase the audience for OVH. That it had to have some time - around 18 months to gain traction but that by 2018 it should be delivering on its promise. It's the one part of the business that currently worries me as they no longer seem to talk much about it - referring to a "Soft launch"
    3. That OVH had the cash pile to get to cash flow positive and make the appropriate bolt on acquisitions that Diversa could not.
    4. That with Diversa and the synergies the cash pile should grow as the combined unit would almost immediately be cash flow positive. The risk to the value of the cash pile was if it had to use it to fund losses but that with Diversa it would not have to use the pile.
    5. OVH was on a valuation basis much more highly valued ( than Diversa) and that was probably because it had more of the jigsaw pieces than Diversa had and as such OVH could get what Diversa had but it was impossible for Diversa to acquire the pieces that OVH had.
    6. The one negative was that they felt that OVH had built an expectation in the market that was going to expect more than you could actually deliver in a slow moving sector. The other was that with the cash pile OVH was probably going to worry less about investors than it did initially as it had funding to complete its plan...

    Hopefully that is enough to satisfy your summary - beyond that I suggest you actually take OVH presentation and approach internal management...

    These comments are all by now my opinion on the information I gained so DYOR - Its not anything other than opinion from an investor.
    Last edited by joewolf: 29/03/17
 
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