Great post;
I think the biggest issue about ABB is that as a "premium" RSP, they get a higher revenue, but also, there customers are fickle, it looks like there are a lot of residential customers leaving because of the price increase and reduction for 100/40 to 100/20.
I dont think they will hit their growth numbers now, and if they do they will have a high 'cost to acquire' because they will have to push harder on advertising, they can deal with churn in a cost effective way due to automation, but it still hurts their brand, and that is the main strength of their business.
There is also a limit to the appetite for premium service, its probably only 20% of the market as a guess (what did iiNet get to?), if they get most of that they could get to 15%, but if there is little or no margin on residential so the growth isnt winning them much unless they can leverage the extra capacity for business, which is still years away by the looks.
The positive from the IPO is that they have more money than they expected, so the have some flexibility now in how they manage things.
(sentiment is sell because of price, i think $1 was probably close to fair value)
Expand
(20min delay)