- This stock will continue to achieve rapid growth in their industry.
- By the time that they achieve operating break-even/net profits there will be a major re-rate of their SP. By the time they do achieve their maiden net profit their company should be a decent size also, which should mean a significant re-rate.
- However, in the interim just further growth (especially through acquisition) probably won't be enough to re-rate the price.
- Normally, I would view Bouris/MQG/NEC being major share-holders as a positive, as it means that their interests are aligned with that of the shareholders. However, given their remuneration I would argue that they aren't in any rush to achieve profits/achieve this re-rate, which is not in the interests of the retail shareholder.
- For the long term play, I anticipate this stock will achieve operating profits-- and will more than likely be bought out by one of the big 4 banks, similarly to Wizard Home Loans. Money can most likely be made by investing at this point.
- In the short-term, there will be no catalyst for SP action and this will continue to underperform the market.
- If there is a change to the Mortgage Brokers industry as suggested by Terrible Tadpole, this thing could implode in the short term also.
YBR Price at posting:
18.5¢ Sentiment: Hold Disclosure: Not Held
