Seems like the recent buying has been The Boat Fund! Good to see...

Seems like the recent buying has been The Boat Fund!  Good to see the gents on the register. They have a good eye for under the radar small caps.

Seems like we got a lot of good times to come based on their write up in the monthly report !

Extract from their monthly report:

In terms of valuation, broker forecasts released last month show the company should earn $12 million reported NPAT this year growing to $24 million in FY2019. This places FIG on a PE multiple of 10x FY17 and 5x FY19. For a business growing organically at 50% pa for the next couple of years - it is extremely cheap. It goes without saying that management will need to continue to execute successfully in order to meet these analyst forecasts. If FIG is successful in growing and diversifying its product portfolio, then we are of the view that it will eventually be acquired. Interested parties may either be a local player or more probably one of the Japanese life insurers that over the last few years have gobbled up several insurance companies in Australia.

As an example, Clearview Wealth (CVW) has recently been partially acquired for a reported earnings multiple of circa 30x by Sony Life. CVW has a more diversified insurance book than FIG and is also an underwriter for its own products, but is currently writing similar levels of new business to FIG. Even applying a 50% discount to the CVW takeover multiple, we still get a valuation for FIG that is potentially multiples of today’s prices. FIG will provide a further update at its upcoming half-year results, and we believe there is a high likelihood of another earnings upgrade.