A couple of possible negatives. (Everyone posts positives--I hold). A lot (most) of CNW comes from their Cirrus Networks Office in Canberra. I did a bo peep at Govt tenders for the last 17 months. In the 5 months to date we've won 25 tenders for $8.75m at an av of $350k/ tender. PCP (6months) they won 47 tenders for $15m+ at an average$ 342k/tender. And in the last June-Dec Half they won 43 tenders for $25.5m. Av = $592k/ tender.
Furthermore most tenders are less than 12 months in duration, but some of a couple of million or more drag out for 2 to 4 years. Is there an Inflation clause drawn into these. With high inflation in the last year some of those earlier ones may be done at a loss. And perhaps that's causing higher prices to be asked resulting in less wins.
Of course, this is only one aspect of their services, but a little worrying nevertheless. Really can't think of any other reason why CNW is so cheap. Anyone able to provide further details?
CNW Price at posting:
3.3¢ Sentiment: Buy Disclosure: Held
