RBAnyone out there worried about RB, like really worried? Where's the follow up from the 10 to 15 companies lined up to be first movers B S?!!
FWIW, I'm not concerned at all and while it would have been great to have gotten a new client NR by now, this NR silence on new clients is in line with my expectations. I discount what Jeff says, I'm like "Show me the Transactions, Jeff".
I said to my buddy the other day, if I owned a title insurance firm I wouldn't want to sign on for a year until it was proven live and the inevitable early kinks were resolved. Due to there being no serious competition, I would have to consider signing on 6 months to get into an install queue, but my natural conservative instincts says I'll be happy if I'm commencing my install on Jan 1 2020.
Heck when you are looking at bring in a new system you'd want to have seen it installed successfully for 5 years, with references, lol. Of course I'm commenting from afar, but we are talking about big changes and insurance co. arent exactly known to be progressive IT shops. Lol. Sooo I will happily stay on my Show Me perch.
Iif they can be running 60,000 transactions by any time 2020 that would be mind blowing great in my books. That's $14m USD in margins, you think that's priced in today in a C$18 m cap co.? Wolf analogy.
- Montalva looks like the closest to a deal with all that ongoing negotiations work and the NR mentioned. It will be fantastic to get this done and shares into shareholders' hands.
- Final permitting for our 50% of Sage, is obviously a critical step but wouldn't get any heart rates going because permits are fully expected. It should be a formality, really. Now, a big sales / leasing deal OR approved financing agreement (either would be equally great) for most of the 1k total units would be way better. No financing w/out complete confidence of success by the lender because the finding will be at the project level, and non recourse, too.
- RB - it will take 24 firms the size of Tommy's to equate to 60,000 transactions, or ten first movers (or provers as I prefer) plus partial implementation of a big firm. Lots of different combinations available. This is not easy work and RB is bringing in something that's very disruptive.
Not to take anything away from Montalva, but it's TOO EARLY to know, but if they are successful, a RB spinout would be way bigger than Montalva or Sage.