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Re: fishhunter post# 41866

Thursday, 08/17/2017 3:05:26 PM

Thursday, August 17, 2017 3:05:26 PM

Post# of 53667
Agreed, they don't need to acquire but it definitely speeds up growth when done properly. I have bought 3 small competitors over the years and would do it again 100 times over (for similar deals) as the ROI was better than what we were currently generating trying to grow organically. If you have most of the infrastructure all ready in place, they value add can be huge...

In the simulator market the customer acquisition cost is extremely high so it seems like it would make sense if they could sell the same customers additional products. They already have most of the infrastructure in place so the cost to ramp up probably wouldn't be to bad. Additionally, diversification can be a good thing. Many of the largest companies in the world generate more money off of later add-ons than they did from their initial services (GE, Apple, Amazon, etc).

Either way, I guess we all will see how it shakes out. Hopefully at some point they will provide better clarification on a future direction/plan.

On another note, anyone who makes investment decisions by what they read on a chat board deserves to lose their money. These boards are mainly for entertainment and anyone who really had in-depth knowledge of a company would not be posting it on a chat board...



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