CPU is far from a sinking ship, although the result was a little weaker than I expected.
One thing to keep in mind is that for FY 2014 the average AUD:USD exchange rate was 0.9185, the average in the current financial year to date (1/7/14 - 11/2/15) is 0.8730, but with the spot rate at 0.77, there will be a nice FX tailwind in AUD terms.
If you view interest rates at a cyclical low, then over the medium term this should also be a tailwind as rates normalise. Any pick up in M&A activity would be an additional benefit.
This is good business with pricing power and a lot of recurring revenue. It's profits are somewhat driven by external factors (interest rates, M&A activity etc.) but if you look through the cycle on these items then I don't think it is overly expensive at the moment.
CPU Price at posting:
$11.53 Sentiment: Buy Disclosure: Held
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