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Summary; very well run company, sound prospects, market conditions could be tough in the medium future, however this could help acquisition strategy. This is a company poised to make its own luck.
Fully priced at the moment?

General Business/Economic Conditions
Concern that overseas customers were seeing a weak recovery even perhaps a further dip as economic stimulus wore off ie. contracting spending on billing systems.
Rising Australian dollar adversely affect revenue.


Rate of Change?
Trends appear constant.
[my comment] HSN IP doesn't appear to be getting aged
But you'd have to say new challenges must arise ie. variable meters haven't worked for customers, what does this mean?

Different Directions.
Does HSN offer more than billing, ie. SAP offers whole of company solution.

Potential Aquisitions.
Helped by rising AUD
Full time M&A Bloke
One company love to buy but just too expensive.
Say ten companies firmly in sight, just waiting for the right opportunity in countries (with rule of law to protect contracts?[my comment])

Potential sale/privatisation of company
No talk. M&A only one way, bit strange. Probably reflects outward looking company?

Family/ Share/ capital Structure
Ken Hansen last stint as director. Will sell down eventually, bring in more institutions? (increase liquidity) or as part of an aquisition stratedgy to allow selling pricipal a gain equity in larger firm, some caution on this as to fit.
Share buyback doing job supporting share price.
(Talk of $30? trade that knocked $10mil of HSN market cap.)
Issuing of shares for takeover purposes also a possibility.
Basically company/family will take sensible steps to enhanse shareholder value as circumstance and opportunity dictate.
Could use shares now as feeling they are ??? realistically priced.
Mayne pushing capital raising for acquisitions(is this his thing?) not followed by all shareholders.
Some dissent about fixation on share price, 11% yield far more important.

Peace
Great cultural/product fit.
Still moving US customers to HSN model.(Basically no freebies I think).
Decisive/effective merger policy enacted by HSN
Why so cheap? Right place right time with cash, Peace broken business for First Data. Potential to reflect badly on FD other businesses often with same customers, FD wanted to move Peace off its books smoothly? Process from start to decision to buy around 7mths.

Telstra
Yes potential opportunity
Moving HSN billing system in no problems. Significant cost advantage to Telstra.
Integrating Telstra's legacy systems a monumental undertaking.
[my interpretation] overcoming Telstra's cultural malaise probably impossible.
If Telstra and HSN were in another country Telstra would give HSN the respect it's due but not here.


Profile
Biggest HSN AGM I have attended
Steven Mayne there for the first time.
HSN too tightly held so it is never going to get much coverage but do sense a change.

The Board Body Language.
Curiously subdued. Maybe they were just frightened by the crowd.

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I have a vested interest in promoting HSN