This is particularly likely given that the vast majority of activity both on revenue and (likely) costs sides are from either (a) the almost totally unrelated business of Logo or (b) the related-but-hardly-new Scheduling+/DBP businesses. It's hard to imagine how these activities create some sort of insurmountable technical "moat".
If GSW had sunk huge amounts of engineering expense into their core product and had realized exactly the same revenue story as we're seeing now (think an alternate world where they spent $40M on engineering and marketing their actual product, not splashing out $10M for Logo d.o.o just before Logo started bleeding $5-10M/quarter) the "spend money to get ahead" would be believable.
I'm wondering whether they'll wind up being about to get their $45M financing facility. It seems like a unwise investment at this stage.
All up they seem to be justifying my earlier claim that it's immaterial whether or not they move from the ASX. Their problems are way more fundamental.
This certainly will make the CA kind of moot. They'll have to move fast for there to be anything left. At this rate the CA people are going to be fighting for the office supplies.
GSW Price at posting:
34.5¢ Sentiment: Sell Disclosure: Not Held
