forecast pe at 6, page-34

good comments 4tk and g3, this business is all about R & D. One should not overlook the fact that they still have most of the customers that bought their software 20 years ago. In the software game customers rarely change products ,as long as the software is bulletproof and doesn't crash they stay with it. They even stay with it if it is crap .

Which is the problem for new entrants with a better product, how to win that business.

According to a recent GLH announcement it seems many hospitals/small private operators , are looking at upgrades and change now so GLH acute sector sales are growing nicely. This was a surprise because it was their nonacute sector sales which seemed to show the most sales growth potential.

The non acute sector sales have very significant sales growth potential. Tony Abbott has always had a big interest in youth mental health, he doorstops Headspace centres, which use GLH software, and there was an allocation of $5million in the his election promises towards an ""an easily accessible fully intergrated e -mental health system"

a product which sound a bit like what GLH have already developed:

http://www.global-health.com/getattachment/48408882-3678-4d1c-9cce-793d77573e4a/Product-Brochure.aspx

So there is a lot of blue sky here . Its good to take profits, but also a good idea to keep some in the bottom drawer for the 2 to 3 year view.

I was an IPO investor in this stock during the tech boom, I didn't hold it for a long time except periodic trades, but started accumulating a couple of years ago. It was a big risk at the time because the company only survived due to loans and capital injections from the boss. But I knew the boss would rather death to failure.

And he didn't let it fail, or die in the process of succeeding, and he is finally reaping the rewards of the hard slog over the years. He is a determined fellow, he has some excellent directors on the board to ease my concerns over having one guy own half the company and run the show, and GLH may become what is known in the trade as a "disruptive innovator", like XRO is to MYOB and Reckon.

So the future looks bright but tech/ IT stocks are always very tricky due to the rapid pace of change. There are also large shareholders who have been trapped in this stock for years, and they would be selling the strength right now. I think we need see another 5 to 10% of the company change hands in this price range before any big moves out of the 40's. The volume is solid though, so another few months will see the old crowd out.