Ann: Small Shareholding Sale Facility Established, page-4

Well the announcement was very interesting. Basically the directors have ultimate discretion on how they sell the shares, and will be at a simple average share price (rather than vwap). My guess (based on Michaels buying recently) is that he is happy to buy the 800K shares at this price. Based on my experience acquiring this over the last 3-6 months, you would not be able to buy this kind of volume without significantly increasing the price. My hunch is that Michael is very bullish on the company and is happy to take up these shares and cut some costs at the same time- it is what I would do in his position.

It would be somewhat illogical for the company to take this on without a buyer in place (unless the registry savings are really large- but I doubt it)- I haven’t really seen this type of arrangement before in a decade on the markets. All of the above is absolute conjecture but I have no better explanation. Not sure how things would apply with blackout periods etc etc as well...

As an outsider the only thing holding this back is the balance sheet- the theoretical cost of unwinding of datetix revenue. My recollection is this unwinds this coming FY. I think the positive cashflow trends therefore show that this unwinding is occurring without an actual cash cost (or the growth is enough to offset these costs- which would be even better). If so- this company is massively undervalued. I think the strong insider buying increases the probability that my assumptions are correct in which case this is a very high probability multi-bagger. I also think the downside risk is extremely low. I have now got enough that if, as I expect, there is a 5-10x return over the next 2 years that it makes a meaningful contribution to my total portfolio return, and I don’t lose too much in the less likely event it doesn’t pan out as I expect.

Am very interested to see how this goes...