Reflection of what happened, page-4

deltahedge you are truly a pessimist regarding vocus and your bias is obviously to find the negatives

whatever your agenda or position, that is clear.

thst doesnt, however, make you wrong or mean we shouldnt consider your opinion objectively.

you make some good points about tpg's relative competitive edge and the premium vocus paid for nextgen, but these are are well known facts.

the submarine cable will still be earnings accretive long term despite the existence of a competitor cable as they will be first to market with a bigger cable and the long term capacity need for two cables will exist. the margins will be lower though than if the competitor cable wasnt being built. i assume vocus would have accounted for a competitor cable in their viability assessment.

the earnings surprises have been flat as you pointed out but remember the earnings growth projections still place the company at a discount to fair value. the problem is more than future eps estimates may be downgraded given the combination of margin pressurr and board disruptions affecting the ability to achieve promised synergies.

i sold my vocus at 3.50 today despite an average buy of 4.00 because it looks like it will go lower given the sharp decline and the heavy volume. i will re-assess once a new base has formed and the next results are out. i havnt changed my view that vocus is trading at a discount to fair value but sometimes the market sends a strong sell signal that is hard to ignore. the question is whether it will all reverse in a month or two or whether there are earnings downgrades to come.