Good trade for the DFT holders andI would never have guessed it...

Good trade for the DFT holders andI would never have guessed it coming.

I still cannot see why buying dial up customers by paying cash and shares for existing busineses is good sense. Surely dial-up is a declining business that most companies would be happy to exit at a profit, before the clients shopped around for ADSL. If if the logic is that these customers wont search elsewhere for the best ADSL deal then i think thisis flawed.

Secondly, for its latest takeover, DFT is going to pay cash and shares. They already have 832 million! shares on issue, and as of their annual report in june they had very little cash, and were burning it, and had not given any profit forecast. So where is the cash going to come from? Is there a new placement or more borrowing somewhere else.

As it happens, DFT and SWT are now valued around the same amount, $20 odd million. SWT HAS issued profit guidance, which they seem to be beating. SWT have mostly ADSL customers and is growing fantastically fast WITHOUT having to purchase other companies customers..this is much more cost effective. SWT have expanded their infrastructire to most capital cities and been signing up 50% growth per month! lately.

Congrats to the DFT holders today and I would have loved to be amoung them, but the run defies logic. I cant see why DFT has the valuation it has at the moment. And i cannot see why it leapt today after announcing they were paying more money and shares to aquire some new dial up customers.