This is proving to an outstanding defensive stock over a very turbulent period for the market in general. The chart is rock solid - check it out. Not only are the defensive qualities, total shareholder return over the past few years has been outstanding. I started investing in this stock at sub $2 prices and averaged up a few times. Topped-up again today.
The AGM presso is a worthwhile read, but several things stand-out.
- brilliant Net Promoter Scores
- low customer churn rate
- product innovation
- brand strength
- shift to organic growth phase
-diversified product offering (aim to hit 3 products per customer)
- benefits of increased scale through acquisitions
- positive impact of NBN and new wholesale pricing
At 15% market share this could also be tipping point. There is plenty of research out there to suggest that this is the point where early adoption of a brand suddenly shifts to mass appeal and market share takes-off. Google "16% rule" to learn more on this theory.
Perhaps most exciting is that telcos are no longer just telcos. The new brand positioning of "broadband, mobile & entertainment" is a really strong pointer. So the likes of iiNet are now providers of content and entertainment owning the gateway to your home (and mobile). So really they have entered the media business as well (content and entertainment delivery). So whilst traditional media companies flounder, the likes of iiNet will flourish!
So IMO , great growth opportunities and no matter what is happening in Europe, US etc, it's an insulated recession proof business model. households will continue to fork out for their monthly bill for broadband and in-home entertainment.
Keen to hear other contributions on this stock and any snippets from recent broker reports.
My opinions only. DYOR.
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