an interesting observation..., page-13

Hi,

Firstly you will see from my disclosure that I do not own any Salmat shares. Generally I invest in mining but due to being in an aligned industry to Salmat (and once having been one of their largest clients) and after speaking to someone on the inside (after hearing to day the price went up around 20 percent recently), I thought I would check out this thread.

My take (as I said from in the industry) is this doesn't make any sense. Australia Post for 3-4 years now had been talking about the decline (change in bell curve) in the not too distance future of hard/ physical mail. Salmats core business is print and mail. Now sure it has diversified into mail box dropping and call centres etc BUT core business relies on print and mail. But if you take Aust Post view this core is under threat.

I could go on about many other factors (industry/ customer/ future) but the short of it is that there seems to be large contradictions within its market and continual high investment in printers must surely hurt sooner or later. I think current interest IS potential a take-over bid/ control bid BUT long term will it pay? Gen Y don't want paper, the next generation is likely to hate paper more...

Anyway, mean no offence etc just was interested to see what was happening in this thread and others takes on this.

Regards
RT