Add more or take profilts, page-4

After having my attention drawn to this company in another thread, by one of the few investors I really take notice of on HC, I have been running my ruler over it.

Normally not the sort of company I buy into, the required assumptions for ongoing growth require significant manipulation of my usual formulas for a DFCF model of IV and it tends to take me out of my conservative comfort zone!

I have come to the conclusion that there are some companies that simply never look cheap and if I want to be a part owner I need to accept the price of entry is higher than my comfort zone of calculated value.

I suspect these sort of companies will continue to frustrate if I wait for a dip to buy into - the dip will always be on the back of consistent growth in the SP over time so I will always end up paying more than now if I wait!

I run an IT business and I see the momentum moving towards cloud based solutions - especially where the software is developed as part of the cloud strategy. I am just in the process of moving a client from server based, sql databases that integrate specific software for various tasks from business management, booking, invoicing, accounting, and other business specific programs - all across to a hosted cloud solution that is end to end for the client and although subscription based, works out much cheaper than upgrading servers and maintaining the systems on site.

I suspect that the move for businesses, corporates and governement departments to cloud solutions is only just starting to develop and transition will be slow with resistence to change and fear of the unknown, but the groundswell will grow and gain momentum and it seems TNE is positioning itself well to take advantage in a quite targeted and specific market.

So waffle aside, I have taken a position in TNE and will look to accumulate over time.