GSW "in the process of evaluating acquisition targets", page-20

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13/02/18

17:52

Post #: 31028488
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Originally posted by Distressed Player ↑

Now let me think this one out - would NA Williams ever be incentivized to offer GSW management a bullish potential transaction figure that they could deliver GSW so as to improve their bargaining position on the transfer price/margin that they negotiate for themselves...mmm I wonder ?

On another front the retention rate is not as good a guide for a company like GSW that operates 'pay-as-you-go' "stop using/leave anytime" contracts. Yes it would be a red flag if this was lower than even 80% IMO.

The key metric that you want is like a capacity utilization figure, or in other words what is the % take-up/penetration of GSW clients using the platform versus the total deliveries that the particular clients' business does.

The veracity of this figure assumed by GSW going forward will be extensively tested by PWC and IMO will be key in forming the view of whether GSW directors had a reasonable basis for providing the 1+ Billion NA Williams or ~260m CBA figures.

I still can't fathom how GSW directors signed off on an ASX release on April 4 2017 re the CBA deal that used the explicit wording..."will deliver ~260m..." What was the reasonable basis there ?

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I can’t fathom how you left out “estimates that it” before your quote. It’s only the most important part of that sentence.

GSW Price at posting: $2.92 Sentiment: Buy Disclosure: Held
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GSW "in the process of evaluating acquisition targets", page-20

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