I agree with most that you say mate only thing that i've found during my research is that saying 100GW in June is CFP is a little misleading as there is a lot of revenue lag. As soon as we convert them to UM, they aren't instantly producing revenue. We bill monthly so its at least a month before the occupied units can be billed, depending on billing cycle perhaps 2 months if we missed the first full cycle. I think payment terms were 14 days? I'd have to double check so worst case scenario for occupied units is 2 and a half months if our new clients pay on time. We then have to take into account new buildings which aren't fully occupied. One other thing which i've never asked Ben but it has troubled me a bit is in a few of those news articles talking about chinese investors flooding our east coast apartment markets to move money out of china and then leaving the units vacant, this would effect us. Materially i don't know, i think it would be impossible to calculate or probably even to guess. So looking at the quarterly and ignoring the new embedded network costs, we are very roughly close to neutral at the moment, and id say that is solely due to this revenue lag. If we keep growing at our current rate, id say we can expect around a 30-50GW lag as we initially convert from UC to UM. This will become less of a problem as our base becomes bigger. Otherwise keep up the good work mate i enjoy your positive attitude. I think the sentiment is going to change very soon when either the next or march 4C shows us definitively CFP.
cheers guys.
LPE Price at posting:
2.0¢ Sentiment: Buy Disclosure: Held
(20min delay)
