Hello again Bug...as you know i have been in & out of myx & yet again out on a volume spike...& a few things about VOC raised its head again so i had to buy @ $2.39 today which is about where i bought before the take over talk started... and i think it is going to happen again.
Why ? Because when a company is worth less than its assets and yet generates an income stream like it is...you just have to buy...
NZ assets will sell there is no doubt about that...take away a large % of debt pile and what do you have *?*
Feed back would be appreciate...so in my tradable sense..of course is questionable at times...what caught my eye:
So a reported first-half FY18 revenues of $967.3 m, up 4% on the same period last year.
However, underlying net profit of $68.6 million was down 25%, but above our $65.8m forecast.
No dividend was declared which is the "ONLY" reason i can see why its being sold down...instos must SHOW INCOME from an ASSETT !!!!!!!!!!
Management reiterated FY18 revenue guidance of $1.9–2.0 billion, but lowered underlying operating earnings by about 2% at lets say midpoint, due to increased marketing and energy hedging expenses, and underlying net profit guidance by about 10%.
At these falling sell outs of sp that indicates to me an infrastructure asset at a bargain basement price, there is no material affect to the operation or value of the assets....or ANYBODY correct me if I'm wrong....
(KPI) and the Enterprise & Wholesale segment were reclassified again and yet top-line growth remains strong and the company continues to take broadband share in Australia and New Zealand in the midst of the NBN and ultra-fast broadband (UFB) migration.
What i really like in the aspect of the print was the strength in the Enterprise & Wholesale segment, which is not only the most valuable part of the company....but try & replace it...nightmare stuff...
NBN broadband average margin per use (AMPU) was restated lower for the current and previous periods, but actually increased sequentially from 2H17, an encouraging sign that consumer broadband margins may have stabilised.
In this forum we have talked about this before...!!!!! This stands in stark contrast to Vocus’s competitors, which are currently seeing a steep drop-off in margins.
Depreciation and amortisation, The 10% reduction in net profit guidance (at the midpoint) is mostly as a result of a step-up in D&A, which detracts from what little confidence investors have remaining around management forecasts.
Ultimately, however, it is a non-cash expense and should actually lower cash taxes.
So with this sell off...what am i missing here ??????
Would love your thoughts people...Thankyou
RDD
VOC Price at posting:
$2.37 Sentiment: Buy Disclosure: Held
