I have tried to look at some of the positive aspects of WHG, rather than homing in like a number of other posts on issues which could prove short term only as trading conditions improve and the benefits of other action like management's recent restructuring kick in. Unlike other posters who suggest that cutting staff reduces income those roles would have otherwise brought in, I suggest that given earnings are down at the minute it makes sense to beneficially rein in the business's cost base. WHG does not operate in a bubble and is affected by market conditions and staff movements, so it does have to ensure it manages its trading risks and client base well.
Regardless of what others say about the quality of the business it has been looked at before by potential bidders and it may only be a matter of time before SFW (again)or another possible bidder expresses some interest. Count Financial was taken over by the Commonwealth Bank so stranger things do happen. WHG does have an attractive group of advisers.
WHG goes ex-div on 22 May for 3 cents and has dropped around 40% in share price.
These factors are some noteworthy positives which must be considered by any doomsayers, because they are seeming to think in terms of worst case? scenarios which these positives (and others) offset.
Just finally in response to comments about WHG's ability to compete with other accounting firms and the Big 4, its website states: "WHK is the largest provider of accounting and related services to small to medium enterprises (SMEs) and high net worth clients."
WHG Price at posting:
65.5¢ Sentiment: Buy Disclosure: Held
