In investing it is often the case that a tempting company remains out of reach for some time before a one-off event, an economic shock or a change in management direction suddenly makes it affordable again. This is a very difficult situation for investors to judge, as there is a risk that subsequent unforeseen events will depress the share price further. The key is knowing how to distinguish the value trap from the opportunity. Financial platform provider Integrafin (IHP) falls firmly into the second camp. Integrafin is broadly similar to groups such as Hargreaves Lansdown (HL.) and AJ Bell (AJB), with the variation that its Transact platform is aimed purely at financial advisers.
- Prospect of lower interest rates
- No regulatory run-ins
- Financially resilient
- Occupies lucrative niche of the market
- Geared to macroeconomic developments
- Concentrated business model
Rising interest rates and the resultant knock to fund flows have caused the market to back away from the company, formerly a star performer in the world of investment platforms. However, where there is fear there is also opportunity, and a closer look at Integrafin reveals a company with far firmer foundations than many suppose and an improving operational performance thrown into the deal as well.