Appreciate your research and opinion on your last post Homey. From it I conclude there is substantial further upside from nbn.
On nbn driving the sp I agree with yourself and Pecker but would like to expand on that as I see it.
The prospect of a return to dividends estimated to be greater than 8% over a two year period combined with eps growth forecasts of 356% then 147% in the same period is enticing to those after growth and income.
Improving liquidity is making it an easier investment.
The trend and announcements are attracting traders and investors.
As we move beyond the $100mill cap increasing coverage by analysts and the increased ability of instos to invest will assist momentum.
They will note the successful foundation management has created to capture m2m market share, the quality of the coattails we're hanging on, and the fact those global co's allow us to is a further sign of confidence in management and products.
They will note the massive potential; and contracts in the pipeline each of which could add say 10 cents to the sp as a bonus.
They will note no debt of concern.
Shares are tightly held and there are not a lot of them, relatively.
Dips will be bought and accumulated adding support to the sp.
The annual report is likely to be a good kicker.
I see massive sales increases in Japan and North America in addition to future contracts.
I note sp rise during the tech correction.
Given all the above I'm comfortable with the current sp of 30times forward eps and believe it will be sustained atleast into the medium term.
So in 12 months we should be around $2; (20times= 1.40). In 18-19, the time I'm more interested in, maybe $3 plus divs collected on the way.
Exciting times indeed.
Cautionary footnote: my crystal ball is dysfunctional.
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Appreciate your research and opinion on your last post Homey....
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