Big write up by TBF in their quarterly newsletter....2nd largest...

Big write up by TBF in their quarterly newsletter....2nd largest TBF position (i assume after RFL)...extract below

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We commenced building a position in EBT in early August 2013 and as at 30 June 2014 was the second biggest holding in the Fund’s portfolio. We believe that EBT exhibited a number of characteristics that made it an attractive investment at the time we first commenced buying including:

• A recurring revenue base of at least 54% of revenue which was set to improve year on year;
• Attractive industry dynamics including demand drivers less sensitive to the economic cycle;
• A heavily regulated industry providing reasonable barriers to entry;
• Attractive operating leverage and high returns on equity;
• A sound balance sheet with the likelihood of the introduction of dividend payments;
• Strong growth prospects via expansion into new markets (QLD and VIC in particular);
• Well regarded management team with extensive industry knowledge and experience (the CEO, Mr Tony Toohey, alone has 34 years experience in the gaming industry);
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The positive momentum in the EBT business appears strong and we continue to be attracted to EBT as an investment opportunity for many of the reasons outlined above. Whilst the share price has appreciated considerably since we first started accumulating a position we believe that the growth opportunities available to the company provide for considerable earnings and valuation upside.