CNU - Chorus

[Jaa]

Yeah. Can't resist the price they're buying so I sold a bundle at the highest I can get today. My remaining CNU shares are now what I would call book-value negative. Others fondly call them free shares

I know its popular but I always struggle with this approach. Do you have better places to put the capital or is it a risk mitigation thing?

[winner69]

Yeah. Can't resist the price they're buying so I sold a bundle at the highest I can get today. My remaining CNU shares are now what I would call book-value negative. Others fondly call them free shares

'book value negative' sounds rather cool .....more descriptive than .free.

[RGR367]

I know its popular but I always struggle with this approach. Do you have better places to put the capital or is it a risk mitigation thing?

If you can't find stocks where to put your money then you've not diversified enough. And logic dictates that it's always a winning move if you can make your stocks become book-value negative first so you can really sleep well.

[couta1]

A very puzzling stock on a ludicrous PE ratio which cant be explained.

[RRR]

PE ratio is not the right way to value Chorus - capex is still high, but will end in the next 1-2 years, depreciation (non-cash) is high and increasing, and this diminishes the E. Free cash flow will increase substantially once the capex ends

Discl - recently invested

[couta1]

PE ratio is not the right way to value Chorus - capex is still high, but will end in the next 1-2 years, depreciation (non-cash) is high and increasing, and this diminishes the E. Free cash flow will increase substantially once the capex ends

Discl - recently invested

Each to their own, I dont invest in stocks where I dont see value nowdays, $9 odd with a low dividend yield doesnt look at all appealing, future divvy potential is just that.

[nztx]

A very puzzling stock on a ludicrous PE ratio which cant be explained.

Similar comment could apply to NPH, but then CNU will probably reward Shareholders far more generously
as they have repeatedly hinted at..

[bull....]

PE ratio is not the right way to value Chorus - capex is still high, but will end in the next 1-2 years, depreciation (non-cash) is high and increasing, and this diminishes the E. Free cash flow will increase substantially once the capex ends

Discl - recently invested

yep correct. thats why people paying the premium now for those future cash flows

[iceman]

PE ratio is not the right way to value Chorus - capex is still high, but will end in the next 1-2 years, depreciation (non-cash) is high and increasing, and this diminishes the E. Free cash flow will increase substantially once the capex ends

Discl - recently invested

That's the way I see it too. Large CAPEX on the UFB roll out coming to an end in the next 1-2 years and a resulting huge increase in free cash flow from less CAPEX and high depreciation charges. Most forecasts showing dividends doubling from current 24c to 50-60c by 20023-2024.

Of course there are downside risks from wireless broadband and potentially 5G. Also potentially a big overhang from Crown Infrastructure Partners should they want to exit their stake post UFB completion.

Discl:
A small holding for current and future dividends

[dobby41]

What I don't get with Chorus is that they play up the increasing data use on the fibre network as a good thing.
They don't get paid on data throughput - in fact increased data means that they have to upgrade parts of their network to avoid congestion = more cost.
They get paid on connections and Spark, at least, is trying to reduce the number of those they use.