"Strange reaction by market - yes invest more but look at the...

"Strange reaction by market - yes invest more but look at the comments in the letter from the MD.

Print migration to digital in nz is so much lower than it is in Aus. This is like being able to buy REA / Carsales when the trading post and real estate classifieds in Australia were still minting money for Fairfax and newscorp.

Added to that, NZ is small enough that even Australian businesses (let along global giants) don't invest there because even 'winning' the whole market won't move their earnings needle that much (context , Aus is 2% of global stock market cap, and profit share for large pharma / tech multinationals NZ is much much lower)

Secular tailwind, dominant market position, positive net promoter score, straight talking management - ticks a lot of my investment boxes"

@JamesRS,

Quite often, the market can behave like an ass.

In this case, the fall in the stock price in recent weeks has left the stock valued at some 18x P/E and EV/EBITDA of 12x.

For a somewhat unique business with considerable earnings diversity and meaningful competitive advantage, which means that earnings will continue to grow by ~10%pa for many years to come (with absolutely no recourse to shareholders), those valuation multiples are no longer as excessive as I've found them to be for several years.