I believe Rob Langford, TNT chairman, is aware of this issue and is working on it.
I believe Tesserent is too good of a business to remain under the radar of the investment community in the long term. 6 million revenue, no debt, blue chip clients and in a growing market.
12 month price target = 25c.
5 year price target = 50c per share (conservative).
I also believe that for Tesserent to get to the next level, it must make acquisitions (as was Keith Glennan's first move after Tesserent listed on the ASX). Organic growth such as cyberbiz will not take Tesserent to a market cap of 100 million. Organic growth takes too long to acquire new customers and grow revenue.
Warren Buffett always says buy a business that even an idiot could run.
Not disrespecting TNT management, but I believe Tesserent is inherently a quality business, with quality products and a blue chip client base.
I have faith in the TNT management, but am backing the quality of the underlying Tesserent business to eventually come through. It has good products, at good prices in a growing market (and possibly a point of difference in cyberbiz if it ever takes off).
Even a few management missteps cannot destroy the underlying quality of the Tesserent business - unless they do something REALLY dumb like what happened with Slater and Gordon which was destroyed by idiot management - loaded the company up with a huge amount of debt to make a dumb acquisition.
I am backing Glennan and Langford to NOT do anything that dumb with the Tesserent business. They are the two biggest shareholders and have no interest in destroying shareholder value like that.
“I knew nothing about the management of Moody’s. The — I’ve also said many times in reports and elsewhere that when a management with reputation for brilliance gets hooked up with a business with a reputation for bad economics, it’s the reputation of the business that remains intact.
If you’ve got a good enough business, if you have a monopoly newspaper, if you have a network television station — I’m talking of the past —you know, your idiot nephew could run it. And if you’ve got a really good business, it doesn’t make any difference.”
I have over 450,000 pieces of TNT and am intending to buy as much as I can. I have been loading up with the share price hovering around 6-7 cents.
As Buffett also says........................be greedy when others are fearful.
TNT Price at posting:
6.6¢ Sentiment: Buy Disclosure: Held