Another year (almost) over, and assets have again been on a tear. All ASX sectors have performed well this year, with most generating double digit returns, consistent with global experience. The other global norm is the notable sectoral exception to this great performance; Telecommunications has been the laggard, underperforming by... Show More
Recently we wrote an article looking at the Telecommunications industry in Australia. Our main premise was the introduction of TPG Telecom into the mobile space would cause problems for the existing players and lead to lower margins across the industry. We received a lot of feedback on that article and... Show More
“It’s in their [The Telco’s] interest to just flick people to the low speed plans as the lower access charge makes a higher margin for them” Nicholas Demos, CEO, MyRepublic. Below are quotes from the week which in our view detail some of the most important and prominent industry trends... Show More
The telecommunications sector is made up of a handful of companies but the most substantial is Telstra with a market cap of more than $60 billion. Telstra presently makes up more than 4% of the ASX300 so it has the opportunity to be a meaningful positive or negative contributor to... Show More
TPG Telecom (TPM) got whacked after releasing results that were in line with market expectations – however, they disappointed in terms of future guidance. The market sold them off by 21.56% on Tuesday, which also took Vocus (VOC) down by 3.64%. It’s just another example of the market getting too... Show More
Developer of broadband products for global telecommunication networks, NetComm Wireless (ASX:NTC), recovered nicely during July after being beaten up in June due to uncertainty regarding the federal election outcome. NTC is well placed to win material hardware supply contracts for the federal government’s NBN roll-out but the election was a... Show More
Scott Shuttleworth from Montgomery Investment Management says they’ve sold their position in Vocus. Before the M2 merger, the Amcom/Vocus merger allowed it to offer “a Telstra-like service at a fraction of the price,” with incremental margins were up to 90%. “We only required a moderate increase in revenue and a... Show More
Vocus is expected to acquire M2 under a reverse takeover arrangement subject to a shareholder vote in 2016. Vocus has proposed to pay 1.625 Vocus shares for each M2 share and the combined entity will be managed by personnel from each firm. Show More
The growth in smartphones over the coming five years is set to be enormous. The installed base of smartphones is set to more than double from 2.6 billion in 2014 to over 6 billion in 2020. What this means is that, by 2020, 70 per cent of the world’s population... Show More
Randal Jenneke, head of Australian equities for global investment manager, T. Rowe Price says it’s a risky time to own high yielding, “bond-proxy” stocks. The SMH reports that Jenneke has completely sold all his holdings in Australian telcos, infrastructure and utilities companies – except for Mirvac. “Telecommunications companies such as... Show More
Last April, we said Telstra was a stalwart of local share portfolios but investors should take a fresh look at it as an income stock. The shares have since rallied 24% from $5.08 to $6.29, and income investors may now be asking whether Telstra is too expensive. Telstra is highly... Show More
Vocus Communications will today come out of a trading with speculation they will acquire FX Networks out of New Zealand. VOC is a telecommunications infrastructure owner with world-class assets. The quality and nature of assets create significant barriers to entry creating a wide moat around its operations. Vocus provides underwater... Show More
For some the recent Fairfax result was a turning point for the business, but was it enough for long term investors to clime aboard? Elio D'Amato, CEO of Lincoln Indicators, says the financial health of a company is not the only consideration but in his view it is the most... Show More
BUY HOLD SELL: Telecommunications special. This week, Chris Stott, CIO of Wilson Asset Management and Tim Carleton, Portfolio Manager of Auscap Asset Management join us to discuss Australian listed Telco stocks. We cover M2 Telecommunications, IINet, TPG, Amcom and Vocus. Watch the video here: Show More
Richard Hemming says beware the telco sector, warning that stock prices (are) liable to halve if negative sentiment emerges. This sector is where some of the greatest uncertainty exists, leveraged as its earnings are to the will of government and to the timing of the National Broadband Network. Once it... Show More
TPG Telecom (TPG) may be the darling in the small cap telecommunications sector due to its stellar returns, but another lesser known junior is close to stealing its crown. Find out which one http://www.eurekareport.com.au/article/2014/3/4/live-markets/vocus-rings-right-numbers-0 Show More
If expectations are for a rise in M&A activity then M2 Group is a prime candidate to be out there hunting for targets. Over the past 5 years M2 has made of $500 million in acquisitions including rival telcos Dodo and Eftel less than 12 months ago. The Company has... Show More