Alpha Growth Share Discussion Threads

[verulamium] 11/2/2021 08:39

...or you were!

[verulamium] 11/2/2021 08:31

Surely the average price of a new share and a warrant is 2.5p, so assuming you think the price will go above 3p, you're not at any disadvantage buying in the market at the moment?

[city chappy] 11/2/2021 08:27

Jungmana, plus in force insurance policies over $750m.

[slicethepie] 11/2/2021 08:26

Hi gobind I have been one of your supportive shareholders where do I get some of these 2p shares with those juicy warrants ...oh mates only !

[jungmana] 11/2/2021 08:23

So a private company with AUM of near $300m is valued at GBP 3.75m? Interesting.

[soggy] 11/2/2021 08:13

This does bode well for the future - it's a great catalyst for the continued growth and re-rating. That said, more often than not the share price usually falls back to the price of any placing, often dipping slightly below it. But if it's a good deal - which this appears to be - then in due course we'll be back up there. Let the good times roll!

[sharetalk] 11/2/2021 07:59

They will have over 30x more AUM than at the start of 2020 and a solid EBITDA positive financial footing for further growth. Increased size will pull in more investors to the fund(s).

[jambam] 11/2/2021 07:58

so BOAGF gained just 2mn AUM in November and December. Hugely dilutive placing. More jam tomorrow.

[slicethepie] 11/2/2021 07:58

I would like to thank all our shareholders for their continued support as we build Alpha Growth into a significant financial services organisation."Oh and by the way you can?t participate in this...mates only!

[tell sid] 11/2/2021 07:46

Acquisition makes ALGW EBITDA positive with AUM's of £290m acquired + £22m ALGW updated = £312m total + in force policies of £750m. Will generate good sticky revenues.

Update on the RCF expected Q1 2021, now with a direct investment element by the provider.

Transformationally aggressive and value accretive growth strategy.

20p to 30p H1 2021 target.

[terminator101] 11/2/2021 07:39

And for anyone who dosen't think that its anything other than a pump and dump by the usual crewshttps://twitter.com/aimlesstrader1/status/1358235026622668801?s=21

[terminator101] 11/2/2021 07:35

Transformational waffle. They bought 95% of a business (that looks to be loss making) for £3.7m and have diluted shareholders by nearly 80% (and thats not counting the warrants within will add another 180million odd shares). Never has anything as 'strategic" been achieved since MRS decided to pay £1.3 million for a drone company owned by the brother in law of one of the Director's Mrs.

[brucie5] 11/2/2021 07:34

A 4m property in Oxford... Good on you... But doesn't sound very *sadly*...
(:

[gilesfitzh] 11/2/2021 07:31

With this acquisition our BoD have pulled off a transformational coup – here is why:
1/. In a matter of a week or so Pello, via a couple of brokers, their clients and some TR-1 holders were OVERSUBSCRIBED for the £3.2 million fund raise to the tune of £550,000.
2/. Given that the fund raise was oversubscribed it’s good to know that further acquisitions, that are currently under review, could add a further £1 billion of AUM and add £1.5 million in annual net profits.
3/. Of the £3.2 million paid for the Parent of the Insurance Company, about £1.45 million was a cash swap as $2 million remains as the permanent capital of the newly acquired company. This means that ALGW have only paid some £1.75 million for the Parent Company of the Insurance Company with about £200 million of AUM and which is making an annual profit, to ALGW, of about £335,000 (95% of $487,000).
4/. This additional £335,000 net profit means that ALGW should pretty much be at break-even which, I am sure, will calm a lot of Investor nerves as ALGW shouldn’t have to raise more cash for operating costs.
5/. The Insurance Company, while owned by a Private Company, was not able to command the sort of Valuation that it should now be able to as part of ALGW, a listed plc. Similar publicly quoted asset management companies, such as Westwood Holding Group (AMG), Westwood Holding Group (WHG), Sivercrest Asset Management Group (SAMG), Diamond Hill Investment Group (DHIL) have an average 29x P/E ratio. You should also bear in mind that none of those asset management companies have the regulated licence(s) that ALGW does in order to provide insurance based wealth management solutions.
6/. Some 160 million shares have been sold in order to acquire the Insurance Company’s Parent. 95% of the Net profit, ALGW’s share, is expected to be £335,000. This is an earning per share of £0.0021, which, at 29x P/E, would give a share valuation, for the Insurance Company, of just over 6p, 3 times the investment.
7/. ALGW and it’s subsidiaries now have at least £220 million in AUM which may very well allow the current investors in BOAGF to increase their investment as well as a good probability of cross pollination from the Insurance Company’s clients to BOAGF.
8/. The life insurance license provides opportunities on a global level to attract investors into Alpha’s funds, increase AUM in longevity assets, source clients for longevity risk coverage and relationships in the reinsurance market. All of these strategies generate sticky and predictable income which, when combined with a lean operating structure, will generate substantial profits.

My valuation of ALGW after the acquisition:
If the new 160 million shares that are attributable to the Insurance Company are valued at 6p each (see 6/. above) and if you add the previous 240 million and new 27.5 million ALGW shares at no more than the 2p paid for the new shares then the total value of ALGW should be (160 million x 6p + 267.5 million x 2p) £14.95 million giving an share price of 3.5p.
IMO this is the MINIMUM current valuation of ALGW as the potential, which is what a share price reflects, for the Company is fabulous.
Sadly my family was unable to participate in the fund raise as we had just committed the balance of our cash to the purchase of a £4 million property in Oxford.

[garykc] 11/2/2021 07:24

mmmmmm, not sure. Placing was done at 2p so may expect a pull back to that level initially. Did I miss any mention of the RCF?

[slicethepie] 11/2/2021 07:21

I would like to thank all our shareholders for their continued support as we build Alpha Growth into a significant financial services organisation."Oh and by the way you can't participate in this...mates only!

[terminator101] 11/2/2021 07:15

Lol, there's the massive placing at a massive discount with massive dilution. More waffle about "building blocks" and "EBITDA positive" (= still making a loss) with more mouths to feed and more confetti issued in warrants and fee shares.Cue all the calls for how amazing it is and also how this share will rerate.

[mick sturbs] 11/2/2021 07:12

Wasn’t expecting that. I’d expect a proper re-rate now

[neilyb675] 11/2/2021 07:12

The 187,500,000 Placing Shares being issued represent approximately 77.8% per cent of the existing issued ordinary share capital of the Company immediately prior to the Placing.

[city chappy] 10/2/2021 07:58

hTTps://www.thesun.co.uk/news/14000732/covid-vaccine-protection-just-one-jab/

[garykc] 10/2/2021 07:40

Another day of drip drip then. Maybe RNS tomorrow.

[pretax2] 09/2/2021 12:29

. Giles better answer

[gilesfitzh] 09/2/2021 12:27

There are many who buy Life Policies as investments for their clients but AFAIK no one has the same tax advantages that ALGW can offer to US Citizens. Doubt many can show 10% returns either.