trading halt until tuesday, page-24

if rumour true, then great news fro swiftel. Big fat lady - are you in SWT? If so - why the negative posts regularly on here?


Anyway - People telecom, I do not know for sure that a merger is the reason for the halt, but if it is, its going to be good. This is why..

People telecommunications has operations in Sydney, Melbourne, Brisbane and Perth that targets corporate customers. It has annual revenues heading to $100 million and is the largest privately owned telecoms service provider in Australia.

To give perspective, Hutchinson had an annual revenue of $330 million - so maybe People telecom about 1/3 size of Hutchinson. Hutchinson have the "3" network and Orange.

So People Telecom is a decent size company, should be very good for SWT. So People Telecom is a medium size, fast growing telecommunications provider, SWT a rapidly growing nationwide ADSL network get together.

While on Hutchinson Telecommunications, they were up 17 % today and is capitalized on the share market at $230 million AND DOES NOT YET MAKE A PROFIT, IT LOST $409 MILLION!!


Now I mention that as people said on here what a shocker the SWT half yearly was, when it CLEARLY wasnt. SWT did not quite make a profit last 6 months, despite expanding into 3 capital cities and building infrastructure for that. But it did amazingly well in growing revenue base ( $260 % rise) and customer numbers. Its an investment to get market share and build up the net worth of the company. Just having the customers and the network for ADSL is valuable. Normal company growth cycle - expansion, cash cow, decline. SWT are in the expansion phase.

If you thought SWT did poorly by expanding that much (260%) and still almost breaking even, what do you call Hutchinsons loss of $409 million while it started its brand "3" and tried to grow its other brand "Orange".


If you think SWT half yearly was bad, then you must think Hutchinson is the short of the century when its not. HTA is well supported by instituonal buyers as its a growth stock. SWT is also a growth stock.

So I maintain the half yearly was very solid, excellent growth, solid financial position and poised to reap the rewards of getting that customer base. With people telecom as a partner, SWT really becomes a prettysignificant player in Broadband and telecommunications, and share price should do well out of it.

The merged companies will be about half the size of Hutchinson in terms of revenue but accross broadband as well as telecommunications, yet not be the loss maker that Hutchinson is. Hutchinson is valued at the moment at $230 million, but SWT and People Telecom much less. So as a combined entity, they are due for a major re-rating. Wth a telecommunications company like PEople Tel;ecom combining with SWT, we have a very good company here.