where we are at., page-4

Microcap competitors on ASX with cloud solutions include SEN and STE. Neither are making a profit. Both have started the rerate over the last month.

SEN especially during the intangible dot com boom was the market favorite and was as high as $1.00.

Cloud is the next hot IT sector following mobiles, driven by outsourcing trends over the years. Cloud has been around for a while but adoption is growing very fast due to maturity, acceptance and sentiment. Enterprises and businesses are all considering or have on their strategic plan outsourcing security, applications, datacenters, ecommerce...etc to focus on their core business.

SPAs announcement looks very nice. 12 to 20 consolidation provides liquidity and at 31.5c values SPA at only 18.9c undiluted. Which is below the cap consolidation raising price.(I tend to not use fully diluted for low liquid shares as exercise of options will provide additional working capital - a good thing).

A low raising of $1.6 million @ 20c currently attributes no premium to the hot sector, the post cash of $3million, the growth of 40% over 5 years, SPA revenue looks like has global exposure not just Australia as well, BF service levels, customer service and standards which is gold (ie IInet has marvelous growth to be 2nd largest ISP over time all because of their customer service).

Taylors Collison is a very good broker as well as their client mix includes institutionals and high net worth individuals who have a longer term view as compared to someone like Pattos.

Performance shares are great 2014 and 2015 with strict financial and growth hurdles so I like Targets to achieve before escrow released lowering number of shares to be brought on market. Targets holds management accountable to deliver and achieve success.

Most importantly the financials, revenue and EBITDA is priceless in this volatile market and SPA has this plenty compared to cloud peers and even sector peers. PE though my guestimate without full figures is very low.

Alot to like about SPA so far from what I have unearthed.

Missed this announcement as was on conferences for a few days but I'll be watching for a healthy retrace to enter sooner rather than later as there is not going to be many shares available to buy pre or post, and forget about applying for the prospectus because consider yourself lucky to get any.

This might be a worthwhile mid and longer term hold.

Now where are the derampers when you need them... lol