Never heard of these guys before so when I read the front page of the SMH (over the internet of course and while it's still Sunday in Switzerland) their name is plastered on the front page.Went to their site, downloaded the prospectus, ran the numbers and I expect tomorrow the share price will go up some.Overall numbers don't look so bad but the purchase of Ozemail base does change things. Stays within the strategic scope of their business nicely, should push efficiencies out of the existing business (which is good because no profit as yet) and could push the payback on the working capital majorly (which is not long anyway).Bit unsure about this one as the company is new and I don't know a lot about it. Prospectus's always look "shiny" to me so a bit dubious.Need some help, anyone else had a looksee yet ? Any idea's or thoughts.Staffo
A word of caution on the valuation if you are including the purchase of Ozemail, the ACCC which is Australia's competition watchdog and is notorious for preventing purchases even when it makes sense (eg the Wills and Rothmans merger was approved all over the world by regulators, however the ACCC refused to allow them to merge in Australia) has stated that the purchase may be anticompetitive (an initial statement only) and they may not approve it.
No, the ACCC will allow it because before Telstra tried to buy it and the ACCC blocked it. Eisa before this purchase was about the 5th largest ISP, now they are No1. Lance
Can't see Fels stepping in the way of this at all. As for Eisa my knowledge of them (based entirely on a few friends who have fleetingly used their services, none of whom continue to) is that it their service leaves an awful lot to be desired. They're paying about $700 a customer - at that rate you need them to hang around for at least 2 years before you even cover that in revenue. (OK I'm still not used to 'internet valuations') I reckon there'll be a hell of a churn rate.Having said that they will certainly go for a ride when they relist. The real question is when they'll come back to earth. (Just went to check what the bids are - $5.01 with $1.06 offer, so I guess that answers the original question...)Cheers,Illy
I hope you're right about the ACCC allowing it, but a merger between the two will mean that 2 of the 5 largest ISPs will becom the largest, in the past that has been enough for Prof Fels to say no, despite it making sense.
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |