RE: ALGW24 May 2018 12:27
How can Stockopedia come to a view on a new comany that is in the process of negotiating deals to commence operations. As for no info, have you read the offering prospectus? I thought that had quite a lot of info. With some background checking I can see that there is already a market in the USA for senior secured life products, bought from holders, and held until they die, at which point the asset crystalizes. They are sold in bundles. There are plenty of actuarial modellers who can predict expeced future cash flows from these products. They are paid out by insurance companies, not over-indebted individuals. People will continue to live and then die for the foreseeable future, completely unrelated to the vagaries of the stock market. It does look like a stable secure income stream product. It is
Not really marketed in the UK, Europe or Asia. Financial comanies want a certain amount of product in assets which provide reliable and reasonably predictable returns. Indeed, they are required to have them.
So I would imagine that ALGW will be able to sell these products, as well as portfolio management advice, and make decent fees for doing so. The current mkt cap reflects the fact that this is a start up, which is not trading yet. Provded they can, and companies in the States already do, then we should rerate according to the deals they can secure, and the fees they can generate.