By Yvette Lane | September 20, 2010 10:40 PM EST International Buisness Times Service Stream likely NBN contractor Latest News in Companies
Service Stream likely NBN contractor
Customer care and special field services provider Service Stream Limited (ASX: SSM) is seen as a very likely participant in the National Broadband Network project.
Within a fortnight, share prices in Service Stream jumped 31 percent to 38 cents. Citi analyst Christopher Vagg is confident the stock is worth up to 50 cents due to �greater than expected opportunities in metering and broadband.� Austock analyst Heath Andrews also considered the company as �an attractive takeover target, and as large NBN contracts are awarded, it stands to be rerated.�
However, Service Stream chief Graeme Sumner said, �We don't need acquisitions to grow... There's plenty of demand (for our services) for us to grow organically and it's cheaper than buying another business.�
The former Transfield's New Zealand chief has been handling the top post at Service Stream for about nine months. His first set of full-year results showed a loss of $2.6 million but Sumner vowed to win back investor confidence after the group was forced to take writedowns of $20 million.
According to Sumner's plan, the company will be concentrating on a three-pronged growth strategy that will target environmental services, mobile infrastructure, and fixed-line broadband services.
The company is into smart meter installation, and solar panel and solar hot water installation programs as a rising number of households equip themselves with environmentally friendly energy sources.......
SSM Price at posting:
35.8¢ Sentiment: Hold Disclosure: Held
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