Shane Fitzgerald, Principal at Monash Investors, says that Emerchants’ has stable banking relationships with it’s UK & European banks that should be unaffected by the political uncertainty in the UK. Instead, he sees their expansion into the UK markets as an underappreciated opportunity. Based purely on the Australian operations, Emerchants would look fully priced. However, when you begin to consider the size of the opportunity in the UK and the US, the value becomes apparent. “Emerchants is worth many times where we see it today,” he told Livewire. While the opportunity in the gaming market is generally well-understood, the “sleeper business” in the Emerchants story is Store Financial. Store Financial provides gift cards for shopping centres. While this might seem like a mature market, throughout much of Europe old-fashioned paper-based methods still prevail, and Emerchants is “a leader in card-based gift schemes”. Find out more in the video below:
Monash was established in 2012 by Simon Shields and Shane Fitzgerald. The Monash strategy is benchmark unaware, style and stock size agnostic, and is both long and short.