I think you sum up the issues well. Its hard to read ASZ though i am still holding.
There is evidence of delays in major IT projects (comments in DTL's update attest to this fact).
ASZ revenue is somewhat underpinned by managed service contracts that have been won in previous years however i tend to feel on balance this half will be softer.
Agree the intangibles are high and represent over payment for past acquisition more than anything else.
Out of the recent acquisitions only Capiotech has lived up to expectations, the data centre and cloud strategy could provide some additional revenue.
All in all i just feel the business is hard to read, and currently in a softer market. The balance sheet is not strong enough imo, i am curious to see how they have settled the earnouts whether by borrowed cash, script or a combination.
ASZ Price at posting:
80.8¢ Sentiment: Hold Disclosure: Held
