Ann: Investor Update, page-71

I currently have open bids on TNT. Disclosure: I have previously worked with several of the staff, including the CEO. Everything in this post is my opinion only.

Why am I buying? I think TNT is significantly undervalued compared to their potential revenue, adjusted for risk.

The business is underperforming but many fundamentals are in place. Market demand exists and TNT has the technical capability to address it. The company's cash position provides adequate time to build revenue. Expenses are unlikely to rise substantially.

What could they do better? The business has offerings that are low margin, don't scale or both, i.e. consulting and connectivity. This is not a good use of capital. The business should double down on its core managed security offering and make it stickier. Tie it to hardware. Secure key patents.

The move of businesses to the cloud presents a great opportunity for TNT to take a leadership position. Success will require discipline and focus.

The company's weakest point may be their board. I'd like to see their remuneration changed to a purely performance based system, especially in times when cash is tight.