Totally agree with what Scott has said. Only thing I will add is that the value proposition of the company for me is the fact that they are expanding into new sectors. The revenue from resource sector is what " keeps the lights on" for me.Don't forgot the biggest USP is that they have moved to a recurring revenue model and 90% of the revenue is ongoing so we already have $12 mil in revenue in the bag for FY17.
Swift is had a large market share in the resource sector but their relationships with the big companies have lasted for years and I wouldn't be surprised if they expand their offering to the resource sector outside Australia. They have 90% retention and success rate which is great and regardless of lack of patents etc. if they big players wanted to move into this space then they would have during the boom.
Also, in the aged care and lifestyle sector- swift is the only authorised wholesaler for Foxtel. Pretty sure Foxtel wouldn't have signed the deal if they were planning to expand themselves and cannabalise their own revenue.
SW1 Price at posting:
22.0¢ Sentiment: Hold Disclosure: Held
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