Just off the top of my head....
I think, but im not sure, that TLS has around 100 000 ADSL accounts?
SWT as of FEb has 12 500 broadband making them around about the 6th largest broadband company in australia and adding 100 a week.
DFT has 10 000 broadband accounts and 90 000 dial up and say they are expecting it to be 50% broadbandwithin 3 years.
Also interesting to note this comment " broadband takeup has accelerated again with the new pricing regime". Now DFT announced previously that they were not dropping their advertised price to TLS as consumers would quickly see it as the scam that it was with the 200mb limit and very expensive excess usage charges that could have easilly run into $1000's of dollars for the unwary or unknowledgable. Instead DFT planned to compete with more realsitic plans and service ( see previous announcement).
So it is good to see that DFT still had an accelerated customer takeup while maintainign its margin.
I have a smaller stake in DFT when I believe it was oversold recently. I still think it has upside to 3 cents on current sentiment. If sentiment turns positive toward telcos, then DFT hit 5 cents back in decemeber ( ie150% above todays price) and DFT is in a better position now ie :
1. 4 quarters of positive cashflow and in a solid financial position where it no longer has to report quarterly.
2. 10 000 ADSL customers, 100 000 accounts. acceleration of ADSL customers despite DFT not dropping price. In fact their margin may have increased as wholesale price from TLS dropped.
3. Director converting options to shares recently. Another director buying in feb.
One could argue they need to do a share consolidation, say 1 for 10. But trading at 2 cents is just like trading at 20 cents, 21 cents is 2.1 cents so I dont really see what the big difference is other than appearance.
I think its a fairly solid buy at current price but others im sure disagree.
DFT
datafast telecommunications limited
