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$1.10 netcomm wireless limited

Well said mate. Its a mugs game trying to short-term trade...

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Pecker

130 Posts.

30/09/14

21:42

Post #: 14053053
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Originally posted by homeytheclown ↑

Ozbecool

It is always interesting to see you pop in here to vent when the opportunity arises. Missing out on a 500-700% return must really suck and whilst I do not wish to deepen your pain I do want to remind other readers that your missed opportunity may have impaired your ability to objectively appraise NTC.

The share price rise over the past couple of years is not particular to NTC. Many M2M stocks have experienced similar increases, e.g. Sierra Wireless, Telit, u-Blox and even Novatel Wireless has had its moments. What you may not understand is that investors are comfortable affording stocks like NTC with a high PE ratio. If you want to see a dog of a share, look at Novatel Wireless, their results of the past years have been terrible yet their market cap just doubled over the past 6 weeks. Why did Novatel Wireless’ market cap double? It is purely about confidence and an expectation that NVTL will increase their revenue and start to make profits. This sector is currently all about expectations and investors can easily be disappointed when their expectations are not met within their given timeframes and result in sell-offs. I watch the M2M sector very closely and I do my best to compare each company against each other and NTC is not as bad as you claim. I will admit that the NTC share price could be considered high (even at $0.55) but the same could be said about other companies in this space. As for the recent sell-off, well, as I have said in previous posts, NTC now need to sign some contracts to justify their share price as I doubt the market confidence will last forever. This sector is very volatile so we should anticipate NTC’s share price experiencing some of that volatility.

So, is NTC’s share price drop a buying opportunity or is it a price collapse as you describe it? I am intending to repurchase the shares I sold if the share price reaches my target price. Why would I buy again/more? There is a very good chance that the Ericsson/Ausnet contract will be extended and there is a fair chance that the NBN fixed wireless footprint will be increased. I suspect these 2 events will occur in the next 2-6 weeks and a positive announcement will have an obvious uplifting effect on the share price. There is always the chance that another opportunity in the pipeline materializes and this is exactly why NTC is a high risk/high reward stock. Of course, if the announcements are negative or do not materialize then the share price will probably drift further south and I will need lower my valuation for NTC.

By all reports the M2M sector will grow significantly over the next 5 years and I am very confident of this, hence an investment in this sector is a must for any diversified portfolio. Instead of coming on here with your blah blah blah posts, why don’t you find us another stock in this sector that is a better buying opportunity than NTC? If you are not aware of any other stock in this sector you shouldn’t have invested in NTC. If you are not interested in this sector you shouldn’t have invested in NTC.

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Well said mate. Its a mugs game trying to short-term trade stocks like this...I invested in the stock on a 3+ year time horizon. Im 1.5years in and have topped up a few times in the past few months. Yeah I would love the stock to go up in a straight line but it never happens....not many people get rich playing the s/t game....Telit and Seirra wireless have had very good runs based on hype around vehicle telemetry imo...the industry has been an early adopter other industries are slowing waking up to it.

Agree with your view on Ausnet and NBN...would also add the potential for a few more carrier signings...not money straight away but will nonetheless strengthen the thesis.

NTC Price at posting: 55.0¢ Sentiment: Buy Disclosure: Held
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