Ann: Acquires iQ3, page-96

@brentman
1. Hi mate, I can say this with total conviction that TNT is not a mature business. Not even close mate. Rivium might be, north probably are etc etc. But when you bring it all together, no one has done that before. And you need to try and understand it's not about having all these companies on the shelf ready to use when a customer needs it. To make cyber security work, you NEED to bring it together and chain the effects together, because that's exactly how the threat operates. Up until now, the industry has been (and still is) heavily fragmented. Customers have been going to multiple suppliers to apply their cyber defences and offenses. They will continue to do this UNLESS TNT can do it for them. That means linking the services. When a service concludes, who will understand what the next service is? How will they recommend to the customer what they do next? And who in the business understands all these services? And how will all the selling be handled? Do sales reps get paid comms or should the people on the ground get paid. TNT has to solve all these problems to succeed. If they do that, they (and we) will be all minted.

2. On the comment about not being a tech stock. That's strongly debatable. I would say they absolutely are. Cyber is broken up into 3 pillars: People, Process and Technology. So on that basis alone, they are a tech stock. Rivium does managed security, which requires heavy IT integration, software like Splunk etc They re-sell technology, which i think makes up half their revenue. They do not make their own tech like AR9, WHK etc, but that doesn't mean they are not tech. They absolutely are tech + they are risk management + education provider + a heap of other things. Again, bringing it all together (refer to point 1).

3. As for how this all does or should affect the shareprice, that I can't say. On the topic of multiples, when you are working in an entrepreneurial space like TNT is, conventional business valuations tend not to apply. TNT have had to apply conventional valuations to each of their aqcuisitions otherwise the market would have grilled them and that would've screwed the SP. I can't predict the future and what TNT will sell for, but if they can bring this together, they will be doing something no one else in Australia (and definitely on the ASX) has done before, and that in my business mind tells me someone will pay much more than the usual 5x multiplier. If a foreign company did offer a large multiplier, how would that affect the SP? And how would that affect our holdings? You would probably know the answer better than I...