"What I'd like to do for myself is study some of their...

"What I'd like to do for myself is study some of their competitors in a bit more detail to understand who they are up against. And how likely they are to win new contracts. The thing we're not talking about is how much of a moat they have. Perhaps this is a crowded market with low barriers to entry."

I think that paragraph goes a long way to informing the limitations of a business such as this one.

The "Who are your competitors?"question has been asked on numerous investment calls and presentations with management and each time the reply has come back as, "We don't really have any".

Now I think that is true and at the same time not true: there may not be anyone else that looks exactly like SkyFi in terms of its quite comprehensive suite of products and services, but there are a great many companies out there doing at least some of what SkiFi does, and at the same time doing other things that SkyFi doesn't.

The fact is that this space is quite new... it was merely nascent before Covid and Covid has given it added impetus. But SkiFi are by no means alone doing this kind of thing; ironically, with Covid having induced a step-function change in demand for SkyFi's services, I strongly suspect it has further induced other participants in the space.

So I don't think for one minute that there is any great commercial moat that SkiFi enjoys which will make it forever bullet-proof; with technology being ubiquitous and cheap these days, the barriers to entry are not high.

Which explains why the company is able to acquire businesses with existing Revenue streams at the low multiples it boasts... that wouldn't be the case if it the companies being acquired were rare and unique beasts that happened to have got to their feet while many others had failed. When an industry structure is attractive, players in that industry don't come cheap.

So what's happening here, in my opinion, is that there is a bit of a global land grab underway; which is why I believe SkyFi is chasing top line growth so hard, without worrying too much about demonstrating short-term profitability. Hooking in customers before anyone else does is the name of the game right now.

So I don't believe for a minute that it is a benign competitive landscape; the only reason that SkiFi has made it appear so easy to increase sales is because the pie itself has been growing very fast.

One of SkiFi's main attractions is that it has been a bit of a first mover, of sorts, so it has been somewhat at the forefront of new products and services. But don't expect that advantage to endure.

I think the end game for this company is that The Hunter will at some point become The Hunted, when a far bigger player with a large corporate chequebook, who has been late to the party but wants to get in, comes riding over the horizon and lobs in a bid to buy whatever SkiFi's revenues might be at that point in time.

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