Ann: Updated FY2019 Earnings Guidance, page-7

I bought Superloop after its share price has dropped 8% to $1.77 after an update on the takeover proposal it received from QIC Private Capital (indicative proposal to acquire the company for $1.95 per share). No further details were provided and it is unclear whether this is the end of talks completely. Including today's drop of 12% the stock is down by 19% after I bough it. The reason why I decided to keep it is the long-term value. It's true that the revenue for 2019FYE is less but the fact remains they have unique assets. It is not easy to find another company who has underwater fibre-optic cables connecting continents.

Morgans have not adjusted their $2.11 price target. According to their research, the broker expects Q3-Q4 to be the end of its increased capital expenditure phase. Another positive is that Morgans believes the company will soon start generating cash flow from its INDIGO submarine cable. Overall, Morgans believes this has positioned the company well to capture bandwidth growth throughout Australia, Singapore, and Hong Kong and deliver strong sales growth over the next few years.

I noticed a comment about protests in Hong Kong. Interestingly, major riots and protests in HK historically lead to higher stockmarket prices.