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My initial reaction is negative, but of course you can try to convince me!

Their earnings seem very lumpy for what I would have thought would be quite a stable business. Certainly their top line looks quite good with slow, steady growth. What's going on with the bottom line?

They have a lot of debt and if the 6% you mentioned above is the interest rate, it sounds as if they don't have a great credit rating. It seems as if they paid a lot for FSG, although they may well have special insight. Do they have a track record of getting the most out of acquisitions?

The cost of options sounds quite high, although that isn't such a worry here since the share price hasn't gone anywhere for the last decade.

I certainly agree that a p/e of 30 is too high. Personally, I wouldn't be interested (at least on an initial perusal) unless the p/e dropped close to 10.

Hamish Rose
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