Month: August 2017

Jumbo has been on my radar for a long time, but I’d been leery about their business.  Since the FY16 numbers were released, the share price has zoomed from $1.60 to $2.90, and I’m ashamed to say my decision to buy around the $2.80 level was driven by the FY16 numbers, so I was slow…

Spirit Telecom went into trading halt this week, prior to announcing the acquisition of World Without Wires (WWW), a consumer WiMax service provider operating across South East Queensland.  The purchase was funded by a mix of cash and new shares, for a total consideration of $4.6m. This acquisition will increase revenue by 23% and GP…

AV Jennings released numbers on Friday, and as anticipated by the market, reported a drop in both revenues and profits: Revenue down 4.8% from 422M to 402M NPAT down 12.7% from $40.9M to 35.7M EPS down 13.1% from 10.7c to 9.3c NTA up 4.3% from 95c to 99c   The drop in profits was mainly…

Kogan released their FY17 numbers on Friday, and the market was delighted with the result – share price shot up nearly 9% to close at $2.61.  I wasn’t actually that surprised at the numbers, seeing as the revenue beat was in line with the HY17 result – information that was freely available to everyone back…

The telco business model is one I like because it’s easy to understand.  Your network costs are semi-fixed – the only incremental costs are the connection cost and sometimes a small network extension to connect to the customer site (which is usually paid for as part of the connection fee)   The incremental profitability of…