CNU - Chorus

[couta1]

Any thoughts on where this company is heading this year or is it pure crystal ball gazing to assume anything at this stage,I'm thinking it may end up back at $2 but then will the reality sink in when they officially announce no dividend payments and keep it at current levels or send it south again?

[couta1]

Thanks Sparky for your reply I was keen to hear your thoughts on CNU as I know how bullish you were on them earlier in the year completely agree re your sentiments on the political side of things I think the Govts response was insipid after promising a strong intervention and by the time they tried to get cross party support the horse had well and truly bolted I actually sent an email to John Key re this and the fact that they had ramped the share price up by indicating an intervention, I guess its human nature to want to make back your losses and I was thinking if the price got back to around $2 I would make half them back but as you say there are better buying opportunities elsewhere.

[craic]

I will keep it simple - the success of CNU depends on the uptake of fibre by new customers - the level of uptake is well below the level needed to be profitable. The assumption that every Tom, Dick and Harry will rush in to buy this system is flawed. I know people who have computers that they seldom switch on because they can text all their communications - I know one still on dial-up and a vast number who are outside the range where the price might be reasonable. So why climb on the back of a donkey when there are saddled horses nearby.

[horus1]

This is a lemon. Np business case was done and with technological change 4G will lessen the need for fibre to homes . It will be needed for business but the govt should have kept out of it .

[couta1]

I will keep it simple - the success of CNU depends on the uptake of fibre by new customers - the level of uptake is well below the level needed to be profitable. The assumption that every Tom, Dick and Harry will rush in to buy this system is flawed. I know people who have computers that they seldom switch on because they can text all their communications - I know one still on dial-up and a vast number who are outside the range where the price might be reasonable. So why climb on the back of a donkey when there are saddled horses nearby.

How true,we have Vodafone coaxial which supply's all the speed and data capacity that we will ever need in our 2 person household

[couta1]

This is a lemon. Np business case was done and with technological change 4G will lessen the need for fibre to homes . It will be needed for business but the govt should have kept out of it .

True also,the young ones love 4G, instant no hassle connection,medium to large business will need fibre but a lot of small business and sole traders wont

[clip]

A lot of small businesses are actually interested and taking it up, as it's noy a lot more expensive than a dsl connection and isps are offering discounts/cheap rates/months free for signing up. Uptake was slow to get started but it's getting there and once people try it they will be unlikely to ever go back I feel. This is my POV from working in one of the larger I.T services companies/ provider in small-med business space in Auckland

[nextbigthing]

I will keep it simple - the success of CNU depends on the uptake of fibre by new customers - the level of uptake is well below the level needed to be profitable. The assumption that every Tom, Dick and Harry will rush in to buy this system is flawed. I know people who have computers that they seldom switch on because they can text all their communications - I know one still on dial-up and a vast number who are outside the range where the price might be reasonable. So why climb on the back of a donkey when there are saddled horses nearby.

So let me get this straight. You feel that fibre is a donkey and dialup is a saddled horse? Hmm I'm not sure dialup is the way forward Craic.

After trying to upload some summer snaps to online storage the other day even I saw the need for faster internet. As more and more people get on board, programs, systems, file sizes etc will be developed around true high speed internet and therefore people will either have to stop keeping up with technology (eg stay on dialup!) or get on board with fibre. Especially if CNU go down the route of slowing copper speeds! Therefore the signup rate for fibre will be exponential once it gets going as people wish to keep up.

[craic]

[QUOTE=nextbigthing;452561]So let me get this straight. You feel that fibre is a donkey and dialup is a saddled horse? Hmm I'm not sure dialup is the way forward Craic.

This forum is about the relative value of companies, one to another, and the best and the worst of investments. If you took the trouble to read my post properly you would not have to be told that cnu is the donkey, in my view, maybe not the only one, but there are plenty of saddled horses among the other investments, by comparison.

[nextbigthing]

Fair enough. But your argument still seems to be that CNU is a donkey of an investment because people aren't going to switch to fibre and your mate's still on dialup. Just like people aren't going to need electric candles and there's no need for households to start embracing personal computers right?

I agree CNU might not be the best investment right now of all the listed companies, however hopefully you get my point as to why fiber uptake WILL occur and if you're writing CNU off on this alone then you could be missing out on a share of a seriously undervalued asset..