# QFX - Quickflix Limited



## J.Baker (9 August 2009)

Anyone had much to do with these guys? I own 139,xxx odd shares and am unsure as to where they might be headed / what to look out for? Im still green to the market so any tips would be muchly appreciated!

Cheers..


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## Rainmaker2000 (10 August 2009)

I've followed QFX for a while, and have been a trial customer.........

To me, they are the perfect illustration of how to/how not to invest in an emerging industry.......

For all the blue sky and possibilities....and all the big names investors on the register.......it is been a no brainer not to own for a long time.....

The reason is that management has shown no intention whatsoever to make a profit..........they have even told the market, "we could make a profit if we want to, but that would decelerate revenue growth".........I wonder how much stock Mr Hodge owns, especially compared to what his 'short term incentive' package must be

Well, quite simply, a company with this attitude will always be taking on new 'sophisticated investors' by issuing stock at lower, lowever prices

EXCEPT for the magic moment they fund growth from operating cashflows.......when will that be?........you want to be an owner when that happens, which will mean buying just before the market attempts to price that.........

As these guys are yet to turn paper profit, growth from cashflows is still a while off...

For the record: I'm a Bigpond movies customer as I find it a much superior product than Quickflicks........but I do at least believe in this little niche


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## poppa (13 July 2011)

Anyone having different thoughts about this one after recent news? Still too little liquidity to go in with any confidence.


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## skc (13 July 2011)

poppa said:


> Anyone having different thoughts about this one after recent news? Still too little liquidity to go in with any confidence.




Too little liquidity? How big is your position? 

The news last week with BigPond was definitely a potential company maker. Today's news with Sony doesn't actually mean much earnings wise - how many IP enabled Sony TVs in the market? 5000? Although it is a good step away from the physical delivery of DVDs towards streaming.

But the market reaction today is definitely over-enthusiastic imo. Let's see if these guys can make some profit first...


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## VSntchr (13 July 2011)

Im with you on this one SKC. Added to my watchlist but won't be doing anything until I see some runs on the board...might do a bit of research in the meantime and figure out how much potential is in the economics/model of this business..


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## since15 (29 February 2012)

Looks like this thread has been dormant for a little while now.  Have started looking at QFX over the last few months. There has been a significant gap in the market in Australia for a while now - Netflix has done very well in the USA in this space.  Their growth in subscribers and more importantly, paying subscribers is pretty impressive.

Stock up from 8cents to 14 cents in the last month following an investment from Time Warner and continued increases their to offerings.

Does anyone have a view?


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## james85 (6 March 2012)

QFX seems to be attracting a fair bit of interest from U.S. production companies, with MGM recently coming on board. I've been following QFX over the last few months. I recently purchased some shares.

Pretty impressive list to date: Sony Pictures, Warner Bros, NBCUniversal, HBO and MGM.

http://blogs.wsj.com/dealjournalaus...-on-quickflix-bandwagon/?mod=google_news_blog

Does anyone have any thoughts?


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## VSntchr (6 March 2012)

Just had a quick look through the investor presentation.

My thoughts are that there is quite a huge potential for this business....however as we all know - you need to spend money to make money....it would appear that QFX is in the spending stage....whether or not they can convert this into profit is yet to be seen. Jumping on board now is speculative...but with potentially large reward.
All in all the presentation didn't appeal to be overly exciting and did not really indicate that management is bursting with confidence...although thats only my first impression.


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## Aido (29 March 2012)

My two cents for what it's worth. I've been reading up on QFX and this business space is of interest to me. Having considered going into business in this area a few years ago, I've always seen a good dollar to made, but have been skeptical of the middle-age delivery methods that were prevalent in Australia. 

I can see massive demand and market share for the first company to associate their brand name with this medium (as Video Ezy franchises were 15-20yrs ago).

As Rainmaker noted before:



Rainmaker2000 said:


> I've followed QFX for a while, and have been a trial customer.........
> 
> To me, they are the perfect illustration of how to/how not to invest in an emerging industry.......
> 
> ...




My eye brows are raised. If we have are big networks / producers such as HBO, Sony etc getting involved.. what's their end game? The way I see it is, they could not care less if QFX ever turn a profit. QFX market reach grows significantly and thus revenue, then the producers are getting their fair share of the loot through commissions / royalties and the like..which I'm better would be a bigger piece of the pie and any profit received from dividends of growth in QFX itself.

I'll be watching this one, the risk of jumping in now could definitely be rewarded handsomely, but at the moment this company is worth $0...and it'll be pure speculation..


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## McLovin (29 March 2012)

I had a look at this a while ago. My theory was/is that kiosks are done once the NBN is built. Secondly, how does a company like QFX build a sustainable moat if they move into streaming. This isn't like a video shop where I may only have once choice nearby. If they start charging more I Google "cheap streaming movies" and go to a competitor. They will competing against the lowest cost provider and it's hard to see how a small company in Australia will compete in a global market. Netflix recently got burnt when it tried to up the price on its customers and they baulked.


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## silence (29 March 2012)

Yes, and they also have to keep the price low enough that the benefits of piracy don't outweigh the consumer's good conscience, even if there is minimal (legal) competition.


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## Aido (29 March 2012)

McLovin said:


> I had a look at this a while ago. My theory was/is that kiosks are done once the NBN is built. Secondly, how does a company like QFX build a sustainable moat if they move into streaming. This isn't like a video shop where I may only have once choice nearby. If they start charging more I Google "cheap streaming movies" and go to a competitor. They will competing against the lowest cost provider and it's hard to see how a small company in Australia will compete in a global market. Netflix recently got burnt when it tried to up the price on its customers and they baulked.




Gonna start sounding like a fanboy soon..

At the moment of a lot of streaming content is region locked. For example, South Park can be legally streamed online (from the official south park website) if you are in Canada/USA. You can't legally stream stream South Park from AU. Assuming the average IT user can't easily work around this (via a proxy or such), and this technology will be/is employed then this provides a regional based competitive moat. In conjunction, there is brand recognition...who says 'search engine for quikflix', you say 'google quikflix'. It is possible they can create very strong association between online streaming entertainment and their brand, if they can provide a good quality (fast streaming, high quality, immense quantity of titles which are always up to date, with a very user-friendly interface) service which is marketed very well. At the moment I have seen little marketing from their behalf which is worrying... They really need to work on that.

There is huge potential in the digital delivery..

Most of AUs infrastructure is adequate for streaming (ADSL 2+ / cable), but mobile phone wireless speed leaves some room for improvement.


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## McLovin (30 March 2012)

Aido said:


> Gonna start sounding like a fanboy soon..
> 
> At the moment of a lot of streaming content is region locked. For example, South Park can be legally streamed online (from the official south park website) if you are in Canada/USA. You can't legally stream stream South Park from AU. Assuming the average IT user can't easily work around this (via a proxy or such), and this technology will be/is employed then this provides a regional based competitive moat.




I didn't know there was region based streaming. I'm not big into movies, which, if you saw the CV's of my family you'd find quite ironic.

Ultimately, with the growth in pirated content, how realistic, in your opinion, is it that in 5 or so years streaming will still be region based? I remember not that long ago when you would have to wait 6-9 months for new blockbuster movies to make it to the cinemas over here. At a recent conference, the head of Foxtel was pretty much saying they need to get stuff off the satellite and broadcast otherwise everyone who wants to see it has downloaded it. I can't think of the show off the top of my head but it was a sci-fi thing on 13th Street. Actually I think it was the reason they started that channel.

If things moved to being released simultaneously, then what's the point of region streaming?



Aido said:


> In conjunction, there is brand recognition...who says 'search engine for quikflix', you say 'google quikflix'. It is possible they can create very strong association between online streaming entertainment and their brand, if they can provide a good quality (fast streaming, high quality, immense quantity of titles which are always up to date, with a very user-friendly interface) service which is marketed very well. At the moment I have seen little marketing from their behalf which is worrying... They really need to work on that.




While these are all excellent qualities for a company to have, they do not automatically create a moat. All of them can be replicated. Small industries, with high fixed costs and few players have the most natural moat. The region blocking may provide some competitive advantage but utlimately it doesn't stop NetFlix or anyone else from setting up a couple of servers in Australia to compete.

While it's great when a brand name becomes the verb or common noun, the likelihood of that happening is pretty remote. I haven't yet anyone say I Wotiffed it, or I Seeked it. 

That's not to say they may not be profitable in the short run but over the long run I don't see how they can build a moat to give them a competitive advantage.



Aido said:


> Most of AUs infrastructure is adequate for streaming (ADSL 2+ / cable), but mobile phone wireless speed leaves some room for improvement.




In HD?


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## McLovin (3 December 2012)

Down 60% today, ouch!

Looks like they're struggling with customer acquisition costs, not surprising given the industry (lowest cost wins). the annual report was a pretty sobering read.

SP has gone from 14c in March to 2.3c today.


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## skc (3 December 2012)

McLovin said:


> Down 60% today, ouch!
> 
> Looks like they're struggling with customer acquisition costs, not surprising given the industry (lowest cost wins). the annual report was a pretty sobering read.
> 
> SP has gone from 14c in March to 2.3c today.




The bleeding edge...

It's one of those businesses that you'd say "yes definitely a growth industry" but then you quickly question "why can't anyone make money from it?". The groupon industry is another one such example.


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## So_Cynical (3 December 2012)

I actually saw someone using one of these kiosks the other week..i was dumbfounded as to why anyone would.


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## skc (4 December 2012)

So_Cynical said:


> I actually saw someone using one of these kiosks the other week..i was dumbfounded as to why anyone would.




I did! I watch may be 5 DVDs a year. I don't want to pay Quickflix $25 a month for that. 

The kiosk is located right outside the Woolies where I shop. There was no line. There's another kiosk where my kid swims and I can return it there the next day. 

It's quick and convenient.

Plus I still run an ancient AV system so if I stream something I need to put on a USB and hook the laptop to my TV to watch it... I know it's very early 00's. Or I have to watch on a PC / laptop rather than the TV.


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## PinguPingu (4 December 2012)

skc said:


> It's one of those businesses that you'd say "yes definitely a growth industry"





Hard to get growth when each year more and more people simply pirate. Now if we were to get something more  like the American original *Netflix* here in Australia where you could rent a(a *much *bigger range of) movies, tv shows, etc. online via your TV or to your PC and to many other devices vs quickflixs limitations, on instant demand for just a few dollars you would have a good chance. 

But already now people are just using a VPN to get around netflix's geo-blocking and renting from them.


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## McLovin (4 December 2012)

skc said:


> The bleeding edge...
> 
> It's one of those businesses that you'd say "yes definitely a growth industry" but then you quickly question "why can't anyone make money from it?". The groupon industry is another one such example.




It's one of those things the internet doesn't do well. If you don't have scale (eBay/Amazon/Facebook) then it's really hard to make money. These guys are selling content that about 10 other sites all are. 

The piracy thing is right too. Unless I'm a massive film buff, in which case I'd probably be buying Blu-Ray rather than renting DVD's then I'm pretty happy to watch something at youtube quality. Maybe that's just me!


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## kermit345 (4 December 2012)

McLovin - You can actually download pirated blu-ray's now (if you have a big enough download limit - each movie is about 50gb from memory). Obviously not endorsing pirating but there is simply no way around it. I play computer games occasionally and almost every gamer has a range of shows they love and download within an hour of it being aired in america. Some local stations tried to combat this with something like the following:

"See NCIS straight from America this season, etc etc etc" and in reality it was still about a week behind the US (instead of maybe a month or more previously).

As McLovin said unless you have scale like ebay/facebook/amazon you've really got no chance. And you don't just get scale overnight unless you go about things in a way that is efficient and something nobody else does. You look at facebook, twitter, instagram, ebay - they are all about speed and efficiency.

I haven't looked at this company at all but I use my PC a lot - if you can pick the next facebook then all power too you but there are that many people out there trying to replicate it or come up with the next big thing that its nearly impossible to get onboard a winner early.


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## McLovin (4 December 2012)

kermit345 said:


> McLovin - You can actually download pirated blu-ray's now (if you have a big enough download limit - each movie is about 50gb from memory). Obviously not endorsing pirating but there is simply no way around it. I play computer games occasionally and almost every gamer has a range of shows they love and download within an hour of it being aired in america. Some local stations tried to combat this with something like the following:
> 
> "See NCIS straight from America this season, etc etc etc" and in reality it was still about a week behind the US (instead of maybe a month or more previously).




Thanks. 50gb! It'll be on TV before the download is finished on my connection.



kermit345 said:


> As McLovin said unless you have scale like ebay/facebook/amazon you've really got no chance. And you don't just get scale overnight unless you go about things in a way that is efficient and something nobody else does. You look at facebook, twitter, instagram, ebay - they are all about speed and efficiency.




Something I've been thinking about recently is just how much longer companies like CRZ/REA/SEK can remain profitable. It wouldn't surprise me at all if in ~5 years time SEK is significantly less profitable in Australia, on a margin and absolute basis. That's why they're trying to diversify their revenue base in places like China and Brazil. Maybe it's already happening, ANZ job ads has been weak for months but unemployment hasn't really moved, is it possible they're missing ads on things like Gumtree


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## skc (4 December 2012)

McLovin said:


> Something I've been thinking about recently is just how much longer companies like CRZ/REA/SEK can remain profitable. It wouldn't surprise me at all if in ~5 years time SEK is significantly less profitable in Australia, on a margin and absolute basis. That's why they're trying to diversify their revenue base in places like China and Brazil. Maybe it's already happening, ANZ job ads has been weak for months but unemployment hasn't really moved, is it possible they're missing ads on things like Gumtree




Completely off topic but I think they are going to be OK. They are all established in their respective sector and have some diversification going on. Each have a clear No.2 competitor on their tail (Carsguide / Domain / CareerOne). It would take someone a lot of money and a long time to butt in what's inherently a small Australian market. Monster jobs was here not long ago and they barely made a splash. 

However, I think while their earnings has some resilience, their valuation will be under-threat in the next 2-3 years. They can't trade on PE 18-22x for very much longer, when most of the growth at home would be exhausted.


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## So_Cynical (4 December 2012)

PinguPingu said:


> Hard to get growth when each year more and more people simply pirate.




I can Ll a movie in about the same time as it would take me to drive down to my nearest Woolies, rent a movie and drive home....so again, why would anyone do it.



kermit345 said:


> McLovin - You can actually download pirated blu-ray's now (if you have a big enough download limit - each movie is about 50gb from memory). .




More like 2 or 3 gigs, assuming that a blue ray rip is actually blue ray quality. :dunno:

for example.

FORMAT.......................: MP4
CODEC........................: X264
GENRE........................: Action
FILE SIZE....................: 2.48 GB
RESOLUTION...................: 1920*1080
FRAME RATE...................: 23.976 fps


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## McLovin (6 December 2012)

skc said:


> Completely off topic but I think they are going to be OK. They are all established in their respective sector and have some diversification going on. Each have a clear No.2 competitor on their tail (Carsguide / Domain / CareerOne). It would take someone a lot of money and a long time to butt in what's inherently a small Australian market. Monster jobs was here not long ago and they barely made a splash.
> 
> However, I think while their earnings has some resilience, their valuation will be under-threat in the next 2-3 years. They can't trade on PE 18-22x for very much longer, when most of the growth at home would be exhausted.




Fair points, especially re PE compression. But taking SEK for a moment. Per the AFR this morning...



> SEEK published its internet job ads data for November today. The number of new job ads declined 3.6% m/m following a 2.7% fall in October. SEEK job ads are now 21% lower than the peak in April last year (-16.1% over the year to November) and have fallen in each of the past ten months. The trend in the SEEK data is consistent with ANZ’s job advertisements series which has declined for the past eight months.




Now over that same period the unemployment rate has barely moved...So what's going on to explain the divergence, I wonder?


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## skc (6 December 2012)

McLovin said:


> Now over that same period the unemployment rate has barely moved...So what's going on to explain the divergence, I wonder?




Market uncertainty so no one is hiring even though no one is firing?

Employment is full, no one is looking for a job?

Linkedin? Facebook? GumTree?

The revival of the old rivers of gold for traditional media?


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## McLovin (6 December 2012)

skc said:


> Market uncertainty so no one is hiring even though no one is firing?




I did a little further digging. Year to November 2011, 91k jobs created. Year to November 2012, 120k jobs created. But they're reporting a 16% fall over the same period in job ads. 

Interesting times we live in.

This is probably better placed in the SEK thread tbh.


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## skc (6 December 2012)

McLovin said:


> This is probably better placed in the SEK thread tbh.




Nah. Those who seek seek will seek here.


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## JTLP (7 December 2012)

McLovin said:


> I did a little further digging. Year to November 2011, 91k jobs created. Year to November 2012, 120k jobs created. But they're reporting a 16% fall over the same period in job ads.
> 
> Interesting times we live in.
> 
> This is probably better placed in the SEK thread tbh.




Perhaps people are hiring without job ads? Or shuffling teams within companies to have a FTE position changing to 2 PTE positions (I know our company has been doing this).

Also, haven't total number of people seeking employment dropped dramatically? What happened to them!


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## trillionaire#1 (7 December 2012)

Lovely,bought yesterday for 1.4cents for a speccie and up 40/50%today


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## trillionaire#1 (24 December 2012)

QuickFlix Secures Funding - ASX release:

        : Investors led by billionaire media and entreprenuer  Alki David to invest $5 million dollars into QuickFlix.
          Alki David and Tim Boyd,President of FilmOn.TVAsia,Inc to join QuickFlix board.
          Positions company for growth.

Quickflix limited (ASX - QFX) "QUICKFLIX"  "the company" today announces that it has entered an agreement
with US based entertainment and media investors  Blueprint Partners "the investors"to secure $5million dollars
in funding through a convertible loan and bond agreement.the funds will be applied to the company in the
execution of its restructuring plans and pursuit of subscriber growth.

QuickFlix founder and CEO Mr Stephen Langsford said "We are delighted to secure this round of funding from
international investors who understand the high growth sector in which QuickFlix operates and the opportunity in our region."

Incoming board member,Mr Alki David said "My investment in QuickFlix and to join its board is representative of my
significant investments in digital streaming and IPTV.QuickFlix represents a key investment for me and the growth potential for the company in the Asia Pacific market and beyong is staggering."

-----------------------------------------------------------------------------------------------------



Hopefully having someone with serious financial clout pumping their monies into the company and joining the 
board gives shareholders of which i am one a little reassurance the company wont go down and may even expand and prosper,least thats my christmas wish!


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## mattycat (24 December 2012)

Hope you're right. The movies work so would be good if company did too lol. 
Aussie people are all too ok with being spoon fed tv content.


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## trillionaire#1 (24 December 2012)

Matty, spoon fed tv content is right.One more copycat reality show and im gonna hurl the remote!

Fed up with amatuers trying to cook,sing,dance,and god knows what else ,no wonder the networks are struggling.


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## andrew king (28 January 2013)

J.Baker said:


> Anyone had much to do with these guys? I own 139,xxx odd shares and am unsure as to where they might be headed / what to look out for? Im still green to the market so any tips would be muchly appreciated!
> 
> Cheers..




The net worth of these guys is still way too low to invest although the model is good. Delivery of the service in Australia is still primitive and struggling for customer base. I'd dump shares and chase Netflix. Has a huge market and much more established although not in Australia yet.


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## pixel (7 January 2014)

andrew king said:


> The net worth of these guys is still way too low to invest although the model is good. Delivery of the service in Australia is still primitive and struggling for customer base. I'd dump shares and chase Netflix. Has a huge market and much more established although not in Australia yet.




One year on, are they making another move?





Some serious volume buying a few months ago suggests that something could be in the wings.




It's speccie, but I'm risking a few $$.


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## fhlhoping (28 May 2014)

Undervalued stock with positive announcements and large volume trading


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## Joe Blow (29 May 2014)

fhlhoping said:


> Undervalued stock with positive announcements and large volume trading




Can you please explain why you believe QFX to be undervalued? Also, what positive announcements you are referring to?


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## pixel (29 August 2014)

The best I can do with penny stocks like QFX is trade the swings.
I may maintain a casual eye on announcements, but it's Technical Analysis that gets me in and out.

This chart may serve as an overview of such trading opportunities.




The news that Channel 9 has transferred its QFX exposure to StreamCo http://www.asx.com.au/asx/statistics/displ...;idsId=01548131 has created renewed interest in Quick Flix, which had been, however, foreshadowed earlier when sellers refused to lower their expectation, causing supply to dry up. The assumption seems to be that StreamCo might use QFX to distribute content.


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## db94 (16 September 2014)

Annual report has been released. massive increase in directors salaries while bigger losses were recorded. However, compared to netflix they offer the same product with the added HBO shows (http://www.smh.com.au/digital-life/...ckflix--a-matter-of-style-20140730-zw9uq.html). Also with the falling dollar and foreign fees to pay for netflix (netflix costing US$8.99 (AUD$9.90 from xe.com) whilst Quickflix is $9.99) maybe the 200,000 Australians who are using netflix will make the change? Is there still a chance it can get out of the mess?


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## System (16 February 2017)

On February 14th, 2017, Quickflix Limited (QFX) (subject to deed of company arrangement) was removed from the ASX's official list in accordance with Listing Rule 17.11 pursuant to the Company's request for removal from official quotation and the Company's announcement of 6 February 2017.


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