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re: uec - record 2 year high - grant? This morning some serious selling took place yet the bulls fought back, very impressive.

I think Grant you may have underestimated the strategic value of this company. No new networks are likely to be built so UEC network has become very important.

Your valuation is based on going out 1 year in profit. I think this is too conservative, especially for a growth company.

Also you are treating the debt too harshly in your calculations, much of it is being used to make present connections, once this happens the money returns. The problem UEC has is that sales are extrapolating meaning additional debt is required.

The other point I disagree with you on is that telecommunication assets have dropped in value. Though generally true, is it true in this particular case? This company is very focused and as I said earlier, no one is likely to install another fibre network. it will only cost more to build in the future anyway as pavements in the major city centres are already far too full with conduits and labour rates have increased.

I noticed in AFR on Friday that there is to be a government subsidy to new biotech companies to provide high speed data networks. UEC already has some deep involvement in government contracts and this can only be another positive.

It has taken a while but it has become standard business practice to have a high speed link. UEC being so focused will benefit more in earnings per share than other less focused companies like Singtel.

I agree that sentiment and the traders can drive a price too hard and can equally turn it around short term so I have sold part of my holding but if the new owner is wise, I think the price obtained for UEC should be satisfactorily high.