being revalued..., page-7

for grant 62- for pin striped suits only.. Grant

i think this thread is quickly going to bore those not interested in figures, just whether the sahre price "is going up" but...

You say "As for ARPU values (pure, or blended), why is it that these are not appropriate for consideration?"..the answer I think is so obvious you know the it already.

A dial up line rental is obviously much less than a DSL line. Yet you are throwing a blanket over the whole 100 000 customers whether dial up or ADSL and saying they only make $30 per unit or whatever it was. If I am a car dealer and I sell Mercedes and Hyundis, you cant I am a poor car dealer because I only draw in $15 000 per unit. Maybe I sell almost all Hyundis. It is only a worthwhile comparison if you know the number of dial up customers and ADSL customers. If they are almost all dial up's then $30 per customer per month is pretty good. If all ADSL, its not.

You also said : "DFT is improving, however, why is it that their cost /OPEX profile is deteriorating (not improving) and their margins are falling (not increasing)?" -

For a start, you have reversed an earlier argument where you said that DFT doesnt get the economies of scale of larger telcos..it has got bigger and presumably its economies of scale are better. You cant talk about margins at the moment based on EBITA because this year saw DFT pay cash in takeing over other ISP's as you yourself pointed out earlier. So this is going to affect the bottom line, also costs involved with integrating them into the DFT system. It is over simplifying to talk about margins on each customer just using customers and EBITA when they have also done a lot of takovers/mergers.

I think the point is that if you start with a certain opinion, you can construct an argument based on the figures to support that opinion. When I go through the figures of TLS as far as a growth stock goes, I recoil in horror, yet you obviously love it and have figures to support. Similarly, you have a negative bent toward small telcos, and come up with an argument against them, even though in the last 12 months they have perfomred a lot better than TLS in terms of share price. Just chart SWT, DFT, AMM, IIN, etc etc etc.

I personally believe DFT will be at least back to where it was about 2 months ago ( over 4 cents) sometime within the next 6 months,