Not a HC favourite?, page-9

So true Maglincer. If only the speculators on HC (and it seems as though 90% of posters are in this category) would come to the realisation that a company can only create sustained value for its shareholders through it's ability to generate positive cash flows and by delivering returns back to the the shareholder through some form or other. A terrible strategy for long term wealth creation is to pick speculative mining and exploration stocks that are reliant upon turning a single/unquantified/unknown/unfunded resource into a cash generating asset.

I've been following this stock since about $2.50 at which point I thought the price was ok for a quality stock, but certainly not cheap. It now just seems expensive for me, and I'm fairly confident I'll either a) pick it up for a cheaper price or b) pick it up for a more attractive price relative to valuation. Some patience may be required, I admit.

Valuation aside, this really is a great company. They've targeted a great section of the market so they're not competing with the SME accounting software providers like MYOB, Reckon, Xero, but not targeting the biggest companies and therefore not competing directly with SAP's and Oracles full scale software (although both of those do offer scaled down versions which do compete).

They have managed to grow revenues and profits considerably over the past decade, which is even more impressive when you consider that excluding 2010 their capex was negligible. There are very few growth companies out there with the ability to translate 100% of profits into free cash flow.

This stock has been able to generate returns of greater than 20% over the last decade. Now that is some serious wealth generation and a good indicator of a high quality, investment grade stock. Who needs to take a punt on speculative resource and exploration companies, when there are gems like this out there.

Cheers
Gralynchett