Hi again BBB. Just read your last post on this thread and it...

Hi again BBB. Just read your last post on this thread and it appears IMHO that you're got your knickers in a knot about the term "surplus" to the point of distraction.

I think NST is talking about surplus cash..... that is cash and cash equivalents at the end of the reporting FY. You appear to be mixing cash flow elements with balance sheet elements. Anyhow......

As I understand, NST were aiming to have cash/cash equivalents of between $50m to $70m at the end of FY 13/14. That means if they come in at low end they have invested all they FCF plus spent some money from the bank and if they come in at high end then some of the FCF is banked on top of the surplus cash previously banked.

Their forecast was obviously qualified by not taking into account any acquisitions during the FY. They advised that they were actively looking at acquisitions depending on opportunity. We are now informed that the opportunity arose and they are snapping it up. Further more, they are purchasing this acquisition from surplus cash. Therefore, their budget forecast for surplus cash will need revising.

Maybe blind freddy can't see the smart investment NST is making, but I would be shocked if Mr Market can't see it. NST has an ROE and ROA about 25% so I would much prefer the surplus cash invested in an asset rather than sitting in the bank at about 4% return. What about you?

Your comment about NST and HC bubbles gave me a belly laugh. Do you really believe that crappola? Really?