chairman's address agm 2013, page-19

It's hard to comment on ASG because it is early days,but it's the only IT company I hold and since update I am very comfortable holding .
Excluding any left field global shocks my short term price target eg maybe even at feb confirmation and guidance update is .60 cents plus.
That's based on 2H half 'trading' ebitda guidance being flat eg approx 9.5 to 10m and ceo's comments and suggestion feb update should be 'superior'. He did say one large contract finishing shortly but went on to be enthusiastic about signing new contracts early 2014 but suggested revenues will show in 2015.

I know the company has said they have first mover advantage in the smaller cloud sector ,and so they should with the acquisitions and I tend to believe this.Interesting to note UXC acquired a cloud co for 24m by memory and i may be wrong but that may now give them debt of approx 20m,so a lot is going to depend on the advantages the various cloud acquisitions are going to make for the established smaller IT companies eg smx,dtl,uxc etc compared to asg.

A SP of one dollar imo would obviously depend on how quick they can pay down debt because their current interest bill is substantial and obviously new contract wins,but before update i would have said $1 unlikely but if guidance achieved etc etc then now possible but imo not until most debt paid off.

ps i had real concerns about the viability of these small IT cloud providers,but then i heard a comment from a sml IT company (sorry can't remember name)that suggested the promotion by the mega players eg amazon,google of the importance of new world service to business is helping the smaller players because the larger players can't match the personnel service provided by smaller IT companies for the smaller contracts ,this made sense to me.But clearly smaller players re selling mega data centre capacity eg nextdc,tls etc is the future imo.

ps data centres are going to become utility plays and very competitive so sooner or later asg will have to sell it's data centre cheaper than book value or write it down imo just my opinions dyor and is this a long enough reply Starrr lol
glta