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iFAST
11-12-2016, 11:27 PM,
Post: #21
RE: iFAST
(10-12-2016, 09:25 PM)Contrarian Wrote: Can their business sustain?  POEMS, dollardex... all others now attack their platform fee grounding.  On what basis will u continue with ifast if u need to pay platform fee regularly...

I was a customer who moved to POEMS several quarters after iFast implemented the platform fee. Best part was it was charged even on my significant holdings in the Cash Fund. Since this was unacceptable to me, I took my business elsewhere. I understand they have since waived platform fees to their Cash Fund since Sep 2015...

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12-12-2016, 09:26 AM,
Post: #22
RE: iFAST
(11-12-2016, 10:09 PM)money Wrote: After 2 years from IPO, earning seems to have dropped. Its p/e ratio is still above 25, still not attractive even with its depressed share price. iFast is trying very hard to support its share price with its frequent share buyback

BINGO! 

IPO = it's probably overpriced 

In terms of business model, there is no difference between iFast and the rest of the brokerage companies. One can buy/sell stocks and UT through all platforms. 

In terms of reliability, iFast will have it worse because they are relying on third parties to carry out all the stock trades.
There are no good stocks. Stocks are only good when they go up after you bought them.

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12-12-2016, 11:19 AM, (This post was last modified: 12-12-2016, 11:20 AM by ghchua.)
Post: #23
RE: iFAST
Just to clarify some points here on iFAST. Firstly, platform fees are only charged on cash/SRS holdings on Fundsupermart. If you invest with them via CPF funds, there is no platform fee.

Now that they have cut the sales charge to 0% for all funds permanently since 8 December 2016, it becomes even more cost effective if you are using CPF funds to invest, i.e. no sales charge and platform fee and CPF-IA administrator status means that you only incur a quarterly charge of $2 on your CPF agent bank regardless of how many funds you hold.

We cannot only use PE ratio to measure whether iFAST is overvalued or not. Earnings are volatile due to the one-off sales charge nature of the revenue model. We have to also look at their AUA (i.e. Asset Under Administration) and see whether it is growing year after year because that is where the bulk of their revenue came from, via recurring income from taking a cut off the AUA. It is different from brokerage companies whereby the emphasis is mostly on generating sales revenue from one-off buy/sell trades and interest from margin accounts.

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12-12-2016, 11:46 AM,
Post: #24
RE: iFAST
If do not use PE, how about yield?

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12-12-2016, 01:05 PM,
Post: #25
RE: iFAST
(12-12-2016, 11:46 AM)edragon Wrote: If do not use PE, how about yield?

I am not saying cannot use PE. I was saying that cannot only use PE alone to value iFAST. Since the cut of AUA forms most of the revenue model, a dividend discount model might also be used to value iFAST, since we can roughly gauge their revenue and cash flow from AUA, supported by relatively high dividend payout.

Even if you only use PE, you should compare with similar companies with an asset light model like iFAST, and see whether a PE of 25x is high by industry standards.

Hope that the above clarifies.

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