Unlikely it has been a flow from CL1 to NWL - these are very different businesses. NWL’s revenue is derived from Funds Under Management versus CL1 which is determined by number of portfolios on system. Class’s primary market is the accounting industry whereas NWL is financial planners.
You could substitute NWL with other similar businesses eg. HUB or PPS or a couple of others - yet the same arguement would prevail.
My call as to the recent movement is short sellers doing what they do best to manipulate outcomes to their benefit. The fundamentals of Class as a quality business have not changed and at these current prices and it’s corresponding yeild (fully franked!) it is now very compelling opportunity.
If their current marketing initiatives continue to produce results as announced in their last update, the opportunity at these prices could be very short lived.
CL1 Price at posting:
$2.34 Sentiment: Buy Disclosure: Held
