Ann: Sale of ITS business, page-151

Finally have some time this quiet morning to really think this through.   I'm not fond of theories so the simple facts at present, imo, are:
* Vocus considered L7 non-core and sale price probably based on falling revenue/ profit.   (For the theorists you could add good connections/favours owed, etc.   Who you know does carry a lot of weight in business)
* CNW can boost profit from L7 within a quarter simply by trimming costs and retaining existing business
* Management have the history, contacts/relationships, expertise to rapidly re-build L7 to the level it was before they sold it to Amcom
* Besides L7, we are likely to see existing business grow with more contracts in the aged care sector
* WA government contracts yet to come
* Based on revenue post acquisition, expected profit next quarter and continued growth CNW appears undervalued at current market cap, imo.
* Hopefully with improving fundamentals this company will now start to attract medium term investors who won't sell into every rise in price.

Technically, weekly chart is bullish with increasing volumes and rising indicators.   Chart below shows some possible areas of resistance (in red) and I've added a Fib expansion.   Good support around the 4.3c level.   Would be preferable to see sideways movement for a few days I think.