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14-05-2019, 11:10 AM
#2131
Member
If they make me the money... I don't mind about the fees etc. 3.4 Bil isn't a small number and I trust the management must have seen something in the deal.
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14-05-2019, 11:28 AM
#2132
Originally Posted by longy
If they make me the money... I don't mind about the fees etc. 3.4 Bil isn't a small number and I trust the management must have seen something in the deal.
The question is are the fees reasonable and should Infratil be looking at the reasonableness of them.
It doesn't look like the market is impressed with this voda-fail transaction, down 5.4% so far today.
Last edited by Beagle; 14-05-2019 at 12:06 PM.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
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14-05-2019, 11:37 AM
#2133
Originally Posted by couta1
Still way too pricey,take a look at the PE ratio.
I agree.... don't hold.
IFT a low risk 'index tracker', but IMHO Morrison & Co take all the cream.
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14-05-2019, 11:54 AM
#2134
Originally Posted by couta1
Still way too pricey,take a look at the PE ratio.
bit like a2 pe a , but never mind its coming down every yr
one step ahead of the herd
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14-05-2019, 12:27 PM
#2135
Originally Posted by bull....
bit like a2 pe a , but never mind its coming down every yr
You cant compare them A2 is a mega growth company not a slow snail like IFT a PE of around 20 would be more realistic.
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14-05-2019, 02:12 PM
#2136
Originally Posted by couta1
You cant compare them A2 is a mega growth company not a slow snail like IFT a PE of around 20 would be more realistic.
I've been happy to told this 8 bagger (IFT) since it floated - so no complaints about management fees from me!
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14-05-2019, 09:35 PM
#2137
Originally Posted by bull....
wonder if its a done deal for vodaphone nz
this from trustpower
Later this year, Trustpower will introduce both mobile phone and wireless broadband services, further building on itsposition as a leading provider of bundled services
http://nzx-prod-s7fsd7f98s.s3-websit...397/299720.pdf
I didn't know this
http://www.sharechat.co.nz/article/b...ay+14+May+2019
"The company, which will this year start offering mobile and fixed-wireless broadband services through a partnership with Spark New Zealand, said its retail gross margin climbed to $156 million from $148 million the year before."
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14-05-2019, 09:56 PM
#2138
I'm a bit perplexed at this one, I think the telco's are really at the end of the line and at the 'sunset' as an industry. Not saying they will be obsolete, but the products they sell are becoming more and more homogeneous and its easier for someone to come in tomorrow and just eat your lunch. High CAPEX spend, very low growth opportunities in a already small market.
Unless, they are seeing an opportunity to flip this over in a few years due to it being an under performing business which they are indicating from the presentation, its very risky because another competitor comes in tomorrow and that throws off all your fancy discounted cash flow calcs and enterprise values.
Charlie Munger once said that EBITDA is like saying, earnings before all the important stuff. I'm interested to see whether there is enough there in terms of cash generating to suffice. I'm skeptical but then again, I'm not sure many picked them to turn around Z Energy.
Last edited by value_investor; 14-05-2019 at 10:09 PM.
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14-05-2019, 10:08 PM
#2139
Hmm
" its easier for someone to come in tomorrow and just eat your lunch."
I'm not sure about this.
Someone would need deep pockets & knowledge on building another telco brand
https://www.stuff.co.nz/business/ind...rategy-working
What has it cost 2 degrees so far to set up + the value of lost return
Goodwill is often worth every penny
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14-05-2019, 10:23 PM
#2140
Originally Posted by kiora
Hmm
" its easier for someone to come in tomorrow and just eat your lunch."
I'm not sure about this.
Someone would need deep pockets & knowledge on building another telco brand
https://www.stuff.co.nz/business/ind...rategy-working
What has it cost 2 degrees so far to set up + the value of lost return
Goodwill is often worth every penny
Although I agree on the high capital costs. I'm concerned that there isn't any chance to grow in the industry, its a race to the bottom really. Offering more data, minutes and continually lower prices is the way to go to attract new customers, and in such a small market population wise you're not going to magically grow your customer base by thousands. Revenue grew about 1% between FY16 and FY19 according to one of the slides.
As for goodwill, its rough for Vodafone https://www.nzherald.co.nz/business/...ectid=12161252
https://www.newshub.co.nz/home/money...customers.html
I'm a holder of IFT, so I'm attempting to be optimistic. I'm assuming all the upside is in stripping down costs, and sharpening up the product leaving it in better shape than you entered before ultimately exiting for a profit.
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