Mr Montgomery's Holdoing 2%, page-21

"Ofcourse its not prescrpitve but you indicative % is equally as baseless. Putting a % on it suggest some kind of factual basis which there is not"

Yes, that's exactly the way I explained it in my response.

I think what will cause a rerate is
Both revenue improvement, cost reduction to improve EBIT and sentiment to elevate multiple

Of your three re-rate bullets:

1. Revenue improvement, as I tried to argue - rather than being organically-derived - will have to be far more acquisition-driven (which is poor-quality revenue growth);

2. Cost reduction... possibly, but ISD being a child spawned from the womb of Private Equity, my experience is that PE don't make a habit of selling businesses off to the market with too much fat left it them. The opposite, actually

3. Sentiment: making a call on what sentiment may, or may not do, in the future is like calling heads or tails on a coin flip, so I avoid doing it.


Good luck.

As I said, I think the downside risk is limited from here, because the valuation looks to me to be reasonable.