STTCOMP ST1 FA LONGGiven the UWL tip...

STTCOMP ST1 FA LONG

Given the UWL tip (https://hotcopper.com.au/threads/short-term-trading-week-starting-17-june.4812214/page-8?post_id=39084917) made it over the line thought I'd double down on ST1 now.

Telecommunication players as mentioned in previous tips have been acting incredibly strong. I'd say only sector to do better is Gold. Here is a snapshot of the sector performance of the 4 key growth players - UWL, ST1, 5GN, DUB (not nanocaps and not majors yet) and also included VOC and TLS.



There has been lots of M&A occurring, VOC recieved T.O offers. UWL made bid for ST1 which was turned down. 5GN opened a $7.2M credit facility for potential acquisitions. ST1 hired an M&A specialist last week and just completed acquisition of BuildConnect and LinkOne.

As to why I like ST1?
- Its the cheapest of the lot, made the most quarterly profit with the best margins.
- UWL has a large premium placed on it due to Vaughan Bowen (founder of M2) taking the lead to find a company making acquisition. Vaughan clearly saw something in ST1 which is why he wanted to takeover all their shares but ST1 turned it down.
- They made $800k profit last quarter (excluding their recent acquisition) which is more than 5GN or UWL or DUB.
- They made new appointments.
- Sub-holder was cleaning up anything at 0.20.

In summary; this is a comparison between all these players



This is from their March Quarter. Their current main business line continues to grow.



Chart: Strong trending chart. Interesting volume coming in lately. Perhaps a soft backtest and push?


Lets see how we go.

Cheers