Its an interesting one to watch. Tony Wales has provided much...

Its an interesting one to watch. Tony Wales has provided much support to get the business to where it is today. Without his funding the business would not have grown as aggressively via acquisition.

Tony has a financial background and was one of the founders of computer share with Chris Morris, so he knows and understand cashflow.

I have been watching for two years as the business has developed. The thing that has stopped me taking a position is that the growth has not been organic and from growth of free cashflow, but via acquisition.

The market is littered with bodies of companies that went down this track before they were strong enough to carry such a debt burden. Look at isoft, nms, uxc and far too many to name. They borrowed and bought, thereby increasing revenue growth via acquisition.

With the potential debt markets coming to a complete stop as they did in the gfc, why would you want to hold a stock that relies on such hefty debt levels to keep funding its existance, you dont, and hence where the selling is and will continue to come from.

Kiril