SlotherThis company has an annual MIS sales cycle which occurs...

Slother

This company has an annual MIS sales cycle which occurs in June each year. This MIS "revenue" is only 25% reported in the year it which it occurs and the rest over the next financial year. So sales of MIS of $65m in 2009 have $48m reported over 2010 year (first and second half).

The future of the company depends on this annual sales cycle. The market is looking forward because it does not believe the $65m reported in June 2009 can be achieved in June 2010. You are looking back at what has been reported and on that basis you are correct but the market is always a forward discounting mechanism as what is in the past is just that, in the past.

You also cannot state woodlot sales seem to be proceeding okay as they have only just started selling June 2010 woodlots and have made no comment on these sales as of the moment.

Does that help?

Lord