Fundies gobbling up all the employee option selling???

AFR, Bell Potter and The Australian pumps always a good short sugar hit for the share price. Seen this on other stocks.

Sold too soon but I'm comfortable with it. Think there are better value tech plays around that I am researching.

Or maybe I misunderstood the story and someone needs to clarify

@thunderhead i thank you and @Vandelay as well, i completely missed that article (as usual)

Valuation grounds it’s not cheap but it’s growing rapidly and therefore possibly the valuation could look reasonable in years to come if they can continue in near this trajectory. The key is that most don’t have backup services which is white noise I think 2% back up their business so the possibilities are huge as more and more move to the cloud.

the other addition is whether they can do some high quality M+A with the money raised which could lead to further growth albeit this could also be a negative if they purchase a bad business. They are taking their time and being diligent which I can appreciate.

They have also been promoting a new product Govcloud. Which is designed for the public sector and other regulated industries that require enhanced data security and compliance features. A couple of contracts in this area and that would help meet the valuation.

The Govcloud looks interesting. I assume they will be ISO27001 compliant which I hope they have the required resources and experience to implement and service also from an audit perspective. We are going thru the same thing and it's a pain.

So could result in lower margins

@edgescape could you explain why you would think this could result in lower margins?

Data#3 would be a good guide. Lots of revenue from govt contracts at expense of margins. Maybe Archtis as well.

I am stating GovCloud would have lower margins and not the other stuff.

Obviously no one here been thru the pain of an IT system audit with one of the big4 :)

It's a good question to ask to DSE for the next SM meeting.

fair shout. I guess lower margins may occur as you need to most likely tender against other similar businesses fighting for the contract which would drive down the margin. The positive is that they are usually sticky and long in duration. So if you win one it is yours unless you royally screw it up.

Hopefully we get to have another chat to Cheriff following the next trading update.