PeckerLet's not argue??? Shall we just believe your posts which...

Pecker

Let's not argue??? Shall we just believe your posts which are based on pure opinion? Hmm, I somehow doubt that makes any sense.

Do you think that every new Vodafone M2M contract will use MachineLink? If you do believe that, you are mistaken. Kone need a M2M cellular module to make that elevator communicate over Vodafone's network. They may have elected to use MachineLink or they may just incorporate a M2M module into their elevators.

I wanted to revisit my comment about the certification comment I made in my last post. Kone may not have to certify their communication equipment on the Vodafone network if they use a M2M cellular module that is already certified on Vodafone's network.

As for your opinion that NTC is cheap you may want to consider the following:

1) NTC will probably post a net profit for FY13/14 of approximately AUD$2M. Given the current market cap of AUD$60M, an approximate PE ratio of 30 may be considered quite high and it is difficult to call NTC cheap using this metric.

2) If you wish to look towards FY14/15, NTC need to find another AUD$12.5M in revenue that was contributed by the Ericsson smart metering contract in the FY13/14. Where is this additional revenue going to come from? The NBN, another smart meter contract or a significant M2M contract?

3) The NBN Co weekly fixed wireless figures are showing some slowdown in the past 4 weeks. If this persists or if the figures do not improve NTC will not be able to rely on the NBN contract to boost its FY14/15 financial figures.

I am a believer in the NTC story but wild success is not guaranteed. I suggest you also look into M2M module manufacturers if you are a believer in the future of M2M. The type of products that NTC sell currently constitute a small proportion of the M2M connections and I don't see this percentage changing in the future.