why the sell off?, page-2

Bar any unexpected insider information that means a hefty profit downgrade is coming out, I think the explanation lies in the Optus and Telstra results.
Both Telstra and Optus are no longer losing fixed line broadband customers - which was the main source of TPG's customer acquisition growth. The analysts see this as a zero sum game amongst the big 4 as its a mature market - ie if Telstra and Optus lose customers, TPG and iiNet gain. If Telstra and Optus retain customers, iiNet and TPG stay flat. iiNet is buying customers so its not as badly affected as it will grow by acquisition. TPG has so far refused to pay for growth by acquisition (as seen by refusing to pay a high multiple for AAPT). So its share price has tanked.

However, there are a few things that the analysts have missed. One is Pipe's growth and profits. The second is that TPGs major competitors have been eliminated (AAPT) or suppressed (iPrimus) leaving it with a niche market to itself (that of low price leader).

It would be helpful if TPG could clarify its position prior to next months results release.