Ht Excellent post thanks for your contribution to the thread.For...

Ht

Excellent post thanks for your contribution to the thread.

For me ASG has two paths in front of it. The first is that the acquisitions have put in place the building blocks for ASG to compete and win 100m+ manged service contracts. I am reading management as now saying that the next available opportunity is in fy13. If they land these contracts the high level of intangibles on the balance sheet will be justified ( ie they would represent aquired economic or business value).

The second path, is one when ASG fails to successfully compete and therefore we have a company who through acquisition has eroded balance sheet strength and diluted shareholder value. I believe the level of debt post earnouts is managable as long as cash flow is used to reduce debt and not engage in more aquisition.

I am as an investor becoming more agnostic to growth via acquisition as it seldom turns out well.

Did ASG make four aquistions that developed the overall service offering and enhanced their ability to compete? Or did they just deteriorate investor value? The market is slightly leaning to the latter.

Only Progress Pacific has exceeded the initial estimated purchase price on a 5 x EBIT basis.

I just spoke to the company regarding the earnouts. Rather confusingly they affirmed that they need to be paid in cash but insisted they had flexibility in how they pay. I queried the flexibility part but couldn't get a specific answer to my queries.