• Australian (ASX) Stock Market Forum

BFG - Bell Financial Group

Discussion in 'Stocks 0-H' started by So_Cynical, Sep 5, 2010.

  1. So_Cynical

    So_Cynical The Contrarian Averager

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    Bell Financial Group is the mob behind the discount online broker Belldirect, BFG have a 36% interest in Third Party Platform P/L who actually own and operate https://www.belldirect.com.au/

    Bell Financial Group has a full-service private client stockbroking arm called Bell Potter security's, they also provide the full range of financial advise and services like estate planning, foreign currency exchange and hedging, super and derivatives, commodity trading for corporation's and individuals. http://www.bellpotter.com.au/

    They even have a wholesale broking firm Southern Cross Equities and operate a in-house margin lending service...They have a staff of over 600 and run 14 offices Australia wide. http://www.bellfg.com.au/

    • 125000 active clients
    • Funds under advise 13 Billion
    • Total annual revenue over 150 million
    • Market cap 193 million
    • Cash and equivalents 108 Million
    • Gross dividend yield over 10% (cant last can it :dunno:)

    BFG Floated in 2007 at $2 a share, on Thursday they traded as low as 79 cents per share...a 12 month low :mad: funny how someone else's misfortune can coincide with someone else's good fortune/luck..the other side of the coin.

    Anyway spending 20 minutes looking at the BFG business should tell anyone that 'this is a good business' with strong revenues and good profits, FF dividends and from this point in its price cycle...good potential for SP growth...hard to believe there's no thread here for BFG :dunno: in my opinion they would have to be considered one of the best truly diversified financial stocks listed on the ASX.
    ~
     

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  2. Slipperz

    Slipperz Well-Known Member

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    Geez the chart is looking a bit sick.

    The buy depth is nonexistant as well. Might have further to go southwards.

    Can't see why the sentiment is so negative though, might have to look at this a bit closer.

    Got it on my watchlist now might jump in at some point soonish :sly:
     
  3. So_Cynical

    So_Cynical The Contrarian Averager

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    Pretty much all the financial advice stocks, brokers and fund managers have been hammered over the last 4 or 5 months....im guessing it has to do with uncertainty over the Cooper super review and the new laws around paying for advice and commissions etc, and the very light volumes of stocks being traded should equal less revenue and thus less profits for the brokers.

    I've been watch the whole sector falling since Jan and will buy a non fund manager soon....bottom for these guys must be close now. :2twocents
     
  4. JTLP

    JTLP Formerly known as JTC

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    Hit the 12 month low today :p: by a big 1 cent from the previous low. The buy/sell depth is pretty spread and you'd either need to step it up to get some or sit tight (I might do the latter if my finger gets itchy).

    Directors are buying but after reading the half yearly the CEO doesn't seem too flashy. Business as usual it would seem.

    You in Cynical?
     
  5. So_Cynical

    So_Cynical The Contrarian Averager

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    LOL i found another stock by accident today that caught my eye...:rolleyes: no not in yet as still trying for a low ball re-entry into CPU

    Besides im thinking BFG could get to 0.75 and i would really be wanting to buy on one of those biggish down days...anyway i sold out of MDL today so have enough funds for 2 stocks and only room for 1 new one in the portfolio.

    Ill make up my mind over the next couple of days, BFG really is a great business with very safe revenues, when the upswing starts in earnest and the punters return to the market i can really see the SP taking off.
     
  6. Huskar

    Huskar Formerly known as 'hesking1'

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    BFG down 10% today on no news to 63c. Directors buying at 72c. Anyone hazard a guess as to why?

    Did you get in on this in the end So_Cynical?
     
  7. So_Cynical

    So_Cynical The Contrarian Averager

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    No i missed the last run when it bottomed soon after i created this thread and then had a marvellous run up to around a 1.40 over the next 6 months only to now be back where it was almost 2 years ago.

    Honestly if i had enough money for a new stock BFG would be on my very short list of 3 or 4 stocks....with luck ill be able to exit a trade early in the NFY and get me some BFG.
     
  8. tonza

    tonza Active Member

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    I have long suspected that ECM activity contributes a big chunk to BFG's bottom line. I spent the last 15 minutes looking for some indication of how much ECM revenue flows through to the bottom line. Couldn't find what I was looking for. Can anyone help?
     
  9. So_Cynical

    So_Cynical The Contrarian Averager

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    Three and a half years after starting this thread i have finally got around to adding BFG to my portfolio, in today at 0.60c

    Things to like about BFG at the moment.

    • At a significant low point in the share price cycle.
    • No debt, lots of cash and equivalent.
    • YOY Group Revenue up 17%
    • YOY Profit up
    • YOY Dividend up 50%
    • YOY FUA up 16%
    • YOY Equities execution revenue up 18%
    • 51% ownership of Bell direct platform
    • Bell direct operating at near break even with 50000 accounts.
    http://www.asx.com.au/asxpdf/20140225/pdf/42mz9gy802z3db.pdf
     
  10. So_Cynical

    So_Cynical The Contrarian Averager

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    Bell trading under 50c today, a little strange considering that the company is profitable and paying dividends etc, 3 year chart indicates that there has been some support at the 49/50c level over the last 2 and a half years, no bad news...triple/double bottom in as well.
    `
     

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  11. oldblue

    oldblue Well-Known Member

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    Probably reflects market unease and foreboding concerning the outlook for equities and investment generally. A time to "buy in gloom" perhaps?
     
  12. JTLP

    JTLP Formerly known as JTC

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    They also dropped their interim dividend completely from the look of their half yearly accounts. What's the compelling reason to buy when they also got hammered on profit?
     
  13. So_Cynical

    So_Cynical The Contrarian Averager

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    I really should of gone through the half year report before i posted, certainly contains no compelling reasons to buy...still at its core its a good business, Bell direct is slowly building a third party clientèle, HSBC and now Macquarie prime.

    The SP can probably go lower...a compelling reason to buy is a very necessary thing, thanks for reminding me.
     
  14. So_Cynical

    So_Cynical The Contrarian Averager

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    Seems to be a lot of support at the 0.49 level so i took a chunky average down @ 0.495 ~ while there was no overwhelming compelling reason for my entry i feel that there is no un-compelling reason either...the current price and the slight upturn in their business was enough to sway me.
     
  15. notting

    notting Well-Known Member

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    And right we were!

    I know the owner and he was the only person buying it during the financial crises. People were laughing behind his back like it was a bit of a joke.
    Their not laughing any more.
    Colin Bell 120,528,028 with a fully franked div or 7.5 and more where the buying was done!

    10-MONTH 2015 PROFIT BEFORE TAX 100% AHEAD
    OF 2014 FULL YEAR PROFIT

    Institutional Broking and Equity Capital Markets division
    revenue up 39% to $30m
    PBT $6.6m
    Futures and Foreign Exchange division
    revenue up 37% to $11.2m
    PBT $1.8m

    Now that's how to make money!
     
  16. VSntchr

    VSntchr Well-Known Member

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    Without having looked beyond a couple of recent announcements and accounts, my only thoughts here are: what the hell am I missing?
    Seems very cheap...it's basically saying they have more than doubled their earnings..yet SP is lower.

    The long term chart is indicative of persistent big holder selling...
     
  17. So_Cynical

    So_Cynical The Contrarian Averager

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    Maybe there are still people selling that held in 2010/11, swapping expensive shares for cheap ones. :dunno:

    With the jump in profit and revenue announced today, all business segments operating profitably (first time in many years) then i think its safe to assume a higher dividend payout in 2016, yield of maybe 7 or 8% on yesterday's close.
    ~
     

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  18. McLovin

    McLovin Well-Known Member

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    They're pretty levered to the health of M&A and equity market. $6.6m PBT on $30m revenue from ECM division. That could evaporate very quickly (as it did before). It's a pretty volatile earnings stream they've got. We've had reasonable period for ECM over the last few years, M&A, cap raisings etc. The SP seems to reflect the lack of conviction by the market in the sustainability of those earnings. Retail equities seems to be a labour of love. :D
     
  19. notting

    notting Well-Known Member

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    Yesterday -
    Or a shrewd way of letting everyone know you exist and a profitable way of helping them get to know you: 9% today:dance:
    Perhaps the market changed it's mind.:D
     
  20. So_Cynical

    So_Cynical The Contrarian Averager

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    AGM announcements out today, interesting that the MD commented on the continuing SP weakness in spite of excellent results, point out that all 4 divisions are operating profitably and have growing revenues, Third party platform now has 90000 active accounts with $7.8b in client sponsored holdings, $74m in client cash accounts

    http://www.bellfg.com.au/pdf/2016-04-21 AGM Presentation Materials.pdf

    On target for close to 5c in total dividends this year maybe more, over due for a major rerating IMO.
     
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