The papers from the AGM today were interesting. Revenues are going steadily up, costs are going steadily down and they are cutting over the Macquarie Corporate Telecoms network which means they will continue to add revenues monthly without even marketing.
The CEO said May has been their best ever month, but what was intriguing was the comment by the new Chairman that they are looking at consolidation opportunities. With $11m cash on hand they would need partners to acquire any targets. On the other hand Powertel with fibre in 800 buildings in Melbourne, Sydney and Melbourne and fibre between those cities is the best takeover target around in telecommunications at such a low price. They are trading in the low 8s when their breakup asset value is more than 20cps.
PWT Price at posting:
0.0¢ Sentiment: None Disclosure: Held
