Ann: Appendix 4C - quarterly, page-62

Well for better or worse I've dipped my toes in today. I'll continue to monitor the price action and accumulate in the low 30s. Thank you to the posters who helped me out with my research. It was refreshing to be a non-holder of a stock and be treated like a normal human being. There's a couple of things I really like here.

1. Cash receipts are becoming increasingly diversified in type and quantity, but overheads have remained under control. The company has the rather rare combination of economies of scope and economies of scale. This offers multi-dimensional leverage, and a spread of risk.

2. Equity support from big pockets. They have generous cash on hand, which helps with their short term liquidity and allows them to invest in themselves, rather than wait for the cashflow to trickle in. I've held stocks that have generated good cash before, but they did not have quite enough underlying equity to grow really quickly, so these other plays with poorer cash liquidity were nothing like those 50%+ Q-on-Q growth numbers that BIG and APT have been able to achieve.

3. Almost goes without saying. The Q-on-Q growth in cash receipts is very good. I crunched a few numbers and the ongoing gross operating cash margin is ~25% which is sound. Importantly its consistent. At this rate, and assuming overheads remain under control, the entity should be moving into solid cash profit territory this year.



Looks good. The hard work isn't done yet by any means. But at a fully diluted market cap of ~$65M with a potential cash balance in the order of $15M to work with (assuming issue and exercise of tranche B), they have a solid platform.