Alpha Growth Share Discussion Threads

[king suarez] 11/2/2021 16:44

Giles - is that $487k profit insider info you were given, otherwise where have you sourced that information?

Thanks

[gilesfitzh] 11/2/2021 15:42

@1airbag: Let's not get carried away. We have no idea of the fee structure of the Insurance Company's AUM. They are supposedly a lean company management wise and net profit on their $270 million of AUM is some $487,000 so expect their fee structure to be much less than BOAGF.

[runnerpete22] 11/2/2021 14:42

With thanks to Bamb on the other side....

[1airbag] 11/2/2021 14:12

has anyone done the maths on $310m of AUM?
I assume 10% per annum growth

1.5% fee is circa $4.5m
plus 20% over 7% is a further $1.9m

This firm can't cost $6.4m to run so already this means we are in profit once the deal goes forward? Any thoughts on share price value appreciated

[brucie5] 11/2/2021 13:44

Excellent work, Sharetalk.
I might even see my average entry price back @3.2p!

[tell sid] 11/2/2021 13:27

Reading today's announcement it looks like ALGW's Black Oak Alpha Growth Fund has moved up from being in the Top 10 performing funds in its asset class according to Barclay Hedge last March, to now being in the Top 5 performers. This will help in marketing of the fund and other products to be launched.

[garykc] 11/2/2021 12:47

Wonder if we will get more action when the USA markets open??

[runnerpete22] 11/2/2021 10:40

Re the RCF.....According to the RNS, it is almost done and dusted, with beneficial extras as well. Win win.

[city chappy] 11/2/2021 10:31

Agreed they should also be exploring RCF from alternative sources, of which there must be plenty in the USA.

[sharetalk] 11/2/2021 10:09

Thanks Giles. The "interim business" you mentioned with the RCF provider sounds interesting. Today's press release did mention direct investment by the provider was newly added to the arrangement.

[tewkesbury] 11/2/2021 10:03

Tell him to seek money for an RCF instead from a local California based provider. There is no shortage of money there. I sold a five bed house two years ago in BH for $8.4m. Average price in the neighbourhood is now over $11m. $100m is nothing in the US.

[gilesfitzh] 11/2/2021 09:54

Sharetalk, My post of earlier today was drafted a week ago and tweaked this morning when I had the exact figures. It is based on the info. that I had as 'an insider' which was mostly published in today's RNS. In the course of my telephone conversation with GS I informed him of the disbelief by most PIs that the RCF couldn't be signed off using Zoom or similar. He told me that the internal policy of the lender does not allow them to conclude the deal without face to face meetings between the interested parties and their lawyers. I strongly suggested that he make this clear in today's RNS but he has chosen not to. I have to agree with the opinion of most PIs that ALGW's PR / Comms is lamentable. He did tell me that he has made a proposal to the RCF lender for 'interim' business but I am not at liberty to divulge details.

[tell sid] 11/2/2021 09:53

"This is a transformative deal for Alpha Growth and represents a significant building block in the company's continued evolution, the deal adds substantial assets under management to the group and is earnings accretive. Following the completion of the acquisition, it is expected that Alpha Growth will be EBITDA positive."

[king suarez] 11/2/2021 09:46

Hi Giles/anyone,

Where/how have you derived annual profits of the acquisition? I do not see any figures around fee rates etc - just the AUM being acquired in the RNS?

Thanks!

[sharetalk] 11/2/2021 09:42

Good to know you were contacted for the placing. Presumably you were given all the information contained in the press release today or was there anything else?

[gilesfitzh] 11/2/2021 09:31

Sharetalk, I was 'brought inside' on 2nd feb as I was offered the opportunity to take part :) I increased my holding end September '20 to 12 million.

[sharetalk] 11/2/2021 09:24

Giles you should have been adding earlier this week.

[mick sturbs] 11/2/2021 09:24

Superb news this morning. Was not expecting that! This should re-rate very quickly now.

[wiganer] 11/2/2021 09:09

P.s my buy is showing as a sell, it was the trade at 08:49:23

[wiganer] 11/2/2021 09:05

Bought a few at 2.6955 this morning. The news could be transformational, and although I think some of the projections being bandied about in posts above seem fanciful, there seems to be a good balance of upside risk and downside protection.

[tell sid] 11/2/2021 08:59

The acquisition means $312 AUM and growing. Sometime this year we can probably expect several $50m G+I accounts, now been publicised. Could end 2021 with $600m to $1 billion AUM, plus the $750m insurance policies.30p H1 2021 target.

[city chappy] 11/2/2021 08:52

Also they can sell ALGW services and products to the clients of the acquired entities and there is still the RCF to come, now also with a direct investment component apparently also simplifying the due diligence.

[city chappy] 11/2/2021 08:48

It's ultimately cheaper and quicker to do a placing and it's value accreative overall so win win.

[slicethepie] 11/2/2021 08:39

That's a nice spin but reality is mates got shares at 2p with a warrant to buy at 3p, which is worth 0.25p in its own right so 1.75p .....that's what I would have liked!