ann--10000 adsl customers, page-9

re: ann--10000 adsl customers - extralite The thing that put me off DFT originally was that it tends to expand by buying out other struggling ISP's for bargain prices. In my mind I thought that if the sellers struggled, DFT would find it difficult to turn it profitable. I was also put off by DFT's large market cap when its shares were 4 cents, it has alot on issue.

However, over time it has become apparent that DFT is able to use its scale to make a profit from these new customers. It has had 4 quarters of positive cashflow and judged by the ASX to be secure enough to not have to report quarterly, which most specs do.

Also, the price has droped to 1.8 - 2 cents so its market cap, given that it is one of the larger ISP"s in australia now with 100 000 customers, is quite cheap. Especially if you run it in a comparision with IIN. Either IIN are vastly over valued, or DFT vastly undervalued. I know IIN makes more money now, buyt DFT is a newer player and is capitalized at a smaller percentage than the relative difference should be. DFT also expanding more quickly.

So yeah - i think DFT is good value at this price. Tech just needs some positive sentiment, which may be returning. A few specs did well on friday.