Ann: eSign Acquisition and A$140 Million Capital Raising, page-32

Lots of shareholders probably enjoyed averaging down since this stock has been hammered and making a decent profit. My only concern is that this is a short term bounce on the share price- it’s future profitability and revenue growth is uncertain (21% is not as amazing as other SAAS stocks out there.)

So since I think this is a short term trade judging market volatility and price momentum, I couldn’t see myself topping up and holding a position for at least 12 months, and then any decent profit I’d make would get hit by CGT and transaction costs. Basically to make it worth anyone’s while it would’ve had to have been a pretty big investment on the average down into NTO at this stage, and with the market volatility and uncertainty over the success of the acquisition deal, I didn’t see it worth the risk. For those that have averaged down, did you see this as a short term trade or a long term position take?

I currently still hold a position, but took out my initial investment cost at about $2.60 for a tidy profit.