Likewise, tech is my area and its much easier to invest or trade in what you know than what you don't!
I am very familiar with the space, especially managed services into multi-tenanted sites and the types of offering ST1 are doing.
If you take BigAir as the comparison and say their AccessPlus acquisition, they paid $5m for approx $4m of contracted annual revenue. at the time of the deal. This is a higher valuation for a higher revenue, but also more opportunities for growth with a traditional ISP offering along side the managed services and whole of building offering.
The site managed buildings are extremely lucrative as long as you can get the deals. The upfront capex is often not to extreme, the infrastructure you have installed is new and you know its type/quality/schematic etc.
Depending on the site, the customer demographic is potentially have much lower support costs if you assume that it will typical be more technologically adept an less inclined to called support for 2 hours trying to setup their wifi. This is somewhat anecodatal and assumed, but just my opinion based on who might be moving into new apartments and developments.
Their other offerings are much more run of the mill and they have to compete with everyone else with the only real differentiation being the level of customer services and support. If they can keep doing what they are doing, things could be interesting.
ST1 Price at posting:
2.3¢ Sentiment: None Disclosure: Held
