In saying what I have just sold on the basis upside seems...

In saying what I have just sold on the basis upside seems limited until we get clarification on the numbers, I think there are better opportunities out there with lower risk. Someone is supporting at $1.50 mind you and could still run later today back to $1.60-$1.70 if instos support. Some of them are on the hook for $1.60 investment base so that sometimes helps them to top up below that price. I'd rather be in something that could double in 12 months and this does not seem likely here. I do wish all holders best of luck and don't see this as a dog but happy to lower risk and pay down some of my home loan if nothing else!

Here is what has scared me off for now with some just speculation but all things that may be unknowns:
- Revenues were $500 million for the half but page 13 of the investor report suggests should have been $650 based on revenue when combined at the time of acquisition. I expected $600 at least. Run rate dropping as mentioned by others to $80 million a month and it changed quickly, not to mention was continuous disclosure breached in anyway with the change in profit results?
- With the advent of cloud computing and downsizing of hard drives and devices in general we may see less items shipped? Given massive size decreases as well will lower margins be expected given lower handling requirements? Certainly makes life easier for competitors to enter market.
- Look at WOW, getting crunched by competition now and they were an absolute market darling.
- Competition may be heating up and the barriers to entry of the industry are not that strong.
- I expected debt to be closer to $100 million. Cap raising required at some stage so any slip up going forward could be absolutely disastrous, I am tipping management are quietly sweating bullets!
- Integration costs have not stabalised and the harsh reality is they appear to have overpaid for ED. Why pay $65 million for something that was hardly profitable? If they couldn't win the distie agreements before acquiring ED what makes us think they will retain all the clients? Feels like they paid for a handful of agreements and a stack of inefficient staff, seeing as no infrastructure was retained.
- The other director who left and was head HP liaison is concerning and the fact they are losing part of the HP client and admit it hit revenues is a concern, a fair chance the lot will go in time. This is how these things tend to work, it phases out.
- Can has been kicked down the road with the change in timing.
- Cloud comments just a hype thing to perhaps excite the market?
- Agree no dividend talk interesting and they do the DRP but debt has not reduced at all thus far.

On the positive side the staff reduction will assist in profitability and guidance was reaffirmed and is solid. Plus is not on demanding ratios if it does hit numbers as guided. Margins were maintained so far so some of the competition and others points above may be unfounded. Sorry if comments annoy some and won't harp on it and happy for rebuttals.