Service Stream (SSM) was one of the companies featured at the @intelligentinvestor presentation last night. The Company has three operating divisions that provide infrastructure services in the telecommunications space. The stock has fallen out of favour with investors after contracts related to the NBN roll out were mispriced. According to Steve Johnson this has created an opportunity for savvy investors to take another look. The Company is one of only two business in Australia capable of maintaining the copper networks which are still in play with the Coalition's NBN plans. The other operator is Leighton...... so Service Stream are back on board with new contracts which they will have priced more carefully. The upside? According to Steve Johnson there could be over $.50 per share of value, double current levels. Interesting to note SSM closed up 8% on high volume.
I had an interesting conversation with a woman after the presentation - she works for SSM competitor UGL and reckons NBN round two will be lucky to be more profitable than round one. We'll see, but some interesting insider's thoughts.
With the current budget pressures (e.g. Gonski) that are dominating political discussions you can imagine all expenditure/contracts would be under close scrutiny as well.
Steve's full run down is at 37 minutes on the following link http://www.brrmedia.com/event/116430?unique_ts=1385531186