Ann: Global Update, page-49

@sabine

Hi Sabine - I haven't bumped into you since the heady days around your dissertation on Thermos flasks which went over my head to some degree. I have a better idea of Software Defined Networking which is the best description I've seen to cover off the processes offered by MP1.

Like @noonster I also owned this stock previously, purchasing it at about $11 and selling it at about $18. It went higher than that subsequently so I'm a long way from being an expert. But the price is heading down to where I previously thought it became interesting.

When companies like this are in the development stage of their business life and before any meaningful profits are made it's difficult to define a buy in price that makes sense but my estimate is that we're pretty close to a sensible number at about $13.

Sometimes it helps to compare companies in a similar position.




I don't offer a view on the other companies in this table but have included them as they are about the same distance up the success runway as MP1.
Their offerings in fact couldn't be more different.
On the basis of the table MP1 is a little more expensive but their annual revenue increase may justify that.

They offer a relatively inexpensive, flexible and secure way for smaller companies (and larger ones for that matter) to hop up onto the cloud by configuring their requirements inside their software offering.
They didn't exactly invent this method but they're a leader in the field. I think competition is growing although I suspect they have a strong first mover advantage. They have already partnered up with some of the worlds largest data centre operators. Digital Reality for example allows MP1 to operate throughout its 200 data centres, (I think via some sort of interface).

The competition may come from competitor software or some data centre operators who provide customers with their own interconnectivity services.

MP1 introduced their "Megaport Cloud Router" in January 2018 which simplifies the cloud connectivity process for the client even more.

Everything I've read suggests these guys are good at what they do but there's no Patents and Trade Marks etc in the game so the concern is about their ability to stay ahead of the game. They must remain agile and aware of the competition

Not sure if any of this helps but I tried.