I reckon they might try for a 7:1 consolidation (indicating a...

I reckon they might try for a 7:1 consolidation (indicating a price of around 32c, currently at 4.8c), with a 25m raising at 25c (an incentive price) for $5m in additional funding, leaving about 165m shares when re-listing (about half of which will be escrowed for a year). This means they may be appealing as a current buy under 3.5c, and that is where I may pick up more if they breach that.

The 2 acquisitions look good, and I would not be surprised if a third is being looked for prior to the capital raising. Combined revenue last year approximately $30m, EBIT over $3m. Their focus is on the Cloud and the Azure platform. Technology stocks may do well in the coming year, or at least, better than some other sectors. This is highly speculative of course, but Stein is an experienced mentor, and bringing these 2 companies in under the Group umbrella might work well, though I expect it will take some time to bed down. It's a buy and hold for a year or more, keeping a close eye on any unfavourable developments. At the moment it looks prospective.

Gw