ASW has a number of competitors: CPU, LNK, Boardroom, Security Transfer, Automic and others.
This situation has persisted for a very long time.
The customers generally speaking are quite sticky.
ASW's traditional bread and butter of junior miners had just recovered from the worst of the mining downturn. I'm sure ASW will be able to win their share of new listings going forward.
The fact that ASW is run by an Australian with Asian/Chinese background, it is in a better position to win a new type of clients, Chinese micro companies seeking to list in Australia. I can tell you that there are plenty of these companies around. By listing in a Western market such as ASX, it gives them the prestige that they are looking for.
An example of a recent client win is DW8, Dawine Ltd, a wine importer and retailer in China. They became ASW's client back in April 2017.
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I also believe that the presence of SOL and LNK in ASW's share register provides a floor in ASW share price. SOL purchased their ASW shares at $0.50 and LNK purchased their ASW shares at $0.70.
I think the end game for ASW is for one day to be either purchased by SOL or LNK. And this takeover will be offered at a price that is at a premium to the current price. Please note that this is purely my speculation, nothing more.
In the mean time, you get to earn 5.5% fully franked dividend. I think of my ASW investment more as a term deposit, without too much expectation of a capital growth!
