Hi Fib, I have been into CNW since just after LBY announced they...

Hi Fib,

I have been into CNW since just after LBY announced they were making the acquisition many months ago (once CNW started posting fantastic revenue increases). I had been watching to see what was brewing after ALA took a stake in LBY about 12 months ago. Anyway, I note that your peer analysis says they're into Data Security however this is only part of what they offer. Essentially they are a standard IT integrator. There is nothing particularly special in what they do. The reason I point this out is that some people might think that 'Data Security' implies they have some proprietary black-magic which a whole bunch of companies are going to want to buy because only CNW can sell it to them. This is not the case.

However, what they do have is a fantastic management team who knows how to build a company. Check out previously announced info about Richmond, Milner and Sullivan for some of their previous successes. And you can see from the revenue growth that they know how to get deals signed.

Just making it clear that this post is not meant to be negative at all - rather just trying to bring a little clarity around what the company does (as per my understanding anyway). Importantly they have a focus on managed services which means recurring income. Take a look at ASZ's recovery from 30c to 90c over the last 2 years if you want to know how important this is...

I believe there is heaps more to come with CNW and am looking forward to the forthcoming full year results due any day now. The push into the Eastern States should increase the growth at an even faster rate. I seriously believe CNW could have revenue of $200mil in a few years time so long as they keep going on this path...