ASI INITIATES INVESTMENT IN SEQUOIA FINANCIAL GROUP LIMITED ASX: SEQ
Announcement posted by ASI 24 May 2019
MORNINGSTAR QUANTITATIVE ANALYSIS SUGGESTS - SEQ TRADES AT A 38% DISCOUNT?
ASI MEDIA - FOR IMMEDIATE RELEASE
ASI INITIATES INVESTMENT IN SEQUOIA FINANCIAL GROUP LIMITED ASX: SEQ
Sequoia Financial Group Ltd (SEQ, formerly MDS Financial Group Limited) is a integrated financial services company providing products and services to self-directed retail and wholesale clients and those of third party professional service firms.
SEQ's share price performance has slumped to private company market levels.
Shareholder Return (inc div) 1yr: -23.86% 3yr: 4.53% pa 5yr: -14.50% pa
SEQ exhibits poor share price performance as it struggles to rearrange its business portfolio.
Morningstar Quantitative Ratings
Valuation Rating: Undervalued
Fair Value Estimate: $0.372
Fair Value Percentage (Undervaluation) Difference: (38.21%)
Liquidity: Medium
On 28 February, Sequoia Financial Group provided its chairman's letter stating that the financial news network continued to generate greater market penetration whilst the Company's other online business developments are rising ahead of internal targets. The Company has also reduced debt by more than $5m throughout this period and increased net asset by over $3m, despite impairing several assets. The Company has also seen heightened enquiry levels from third party Australian Financial Services Licensees looking to access broker services through Morrison's Securities following the recruitment of key personnel who have increased the Company's 'bench strength' within this business.
That positive announcement by the Chairman has not yet translated into a consistent improving share price and the Company has not provided an update on expected financial performance for fy 2019. We suspect shareholders would find an update at this time, useful.
SEQ also announced on 1 March 2019 - "Garry Crole will remain as Acting CEO whilst the Company undertakes an extensive search for the CEO role over the coming Quarter". By now shareholders should have received some indication, having regards to the appointment of a permanent CEO to drive the Company forward.
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Michael de Tocqueville
CEO - Investment Director
AFSL 224560 Responsible Manager
Advocate Strategic Investments
trading as ASI
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About ASI
ASI is an independent alternative style investment management firm which holds an Australian Financial Services Licence numbered 224560 (AFSL 224560).
ASI provides wholesale clients, sophisticated investors, superannuation funds and institutions with customised proprietary model portfolios for medium to long-term investing.
ASI also provides, an execution only, share broking service through Commonwealth Bank of Australia’s CommSec and Interactive Brokers Australia.
Disclaimer
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This release is intended solely for use by Wholesale and Institutional clients within the meaning of section 761G of the Act, sophisticated investors pursuant to section 708(8) of the Act, professional investors pursuant to section 708(11) of the Act, and/or otherwise persons to whom a disclosure document is not otherwise required to be given under Chapter 6D of the Act.
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