re: Ann: PPC-1 Update - Landing of Cable in S...
Sales in place before the cable was announced were apparently enough to leave the Pipe International vehicle debt free within a year of completion. That was under the assumption that bridging finance was to be used.
Obviously, since the finance fell through, they brought forward customer receipts to pay for it instead. Any additional sales, as far as I'm concerned, are icing on the cake.
I don't think a price war will break out. Pipe wouldn't want to alienate its founding customers by offering bandwidth to new customers for significantly lower prices. Also, the other competing cables are mostly owned by monopolists (Telstra, Singtel, and TCNZ) and they're probably not going to start a price war either.
Where did they say that they weren't going to pay a dividend for a while? I must have missed that.
PWK Price at posting:
$3.85 Sentiment: Buy Disclosure: Held
