How does this effect Chorus?
http://www.stuff.co.nz/technology/di...e-planned.html
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How does this effect Chorus?
http://www.stuff.co.nz/technology/di...e-planned.html
It doesn't, or if it does, it probably helps.
The current Southern Cross cable is owned by Telecom so a new international cable is no competition to Chorus local network.
Having said that, increased international capacity may speed the introduction of new services to NZ like Netflix. If that happens, fiber uptake, and uptake of the more expensive plans may increase, shich would be positive for Chorus.
Of more interest is who is the 'Major New Zealand company' who is providing the equity. Chorus seems a logic choice but they couldn't afford it as they are currently crying poor. THe other telecoms have formed a consortium to build a different cable that only goes to Australia so it isn't them. KimDotCom has had a bad week and he doesn't actually have any money, no is he a major NZ company so count him out. Rod Drury diversifying XRO operation - unlikely. IFT but the economics are good enough for them. Todds are my pick as they like to have their hand in everything. Or how about SKT - they could get the local license of Netflix given they have the content rights already.
Webcast on now;
http://www.chorus.co.nz/webcast
Link to presentation;
http://www.chorus.co.nz/file/46873/I...INALslides.pdf
Not sure if anyone else listened to/watched the webcast (I caught about 1 and a bit hours of it).
But from what I saw I was happy, the institutional investors should be too, and given it rose 2.3% with 1m through, looks like they may be.
Many different elements on target, good stuff.
Its hard to know what to say :-S
Bloody ComCom, just do your job properly and stick to your dates.
At least by the end of the year National will likely be in again and with that as some certainty it might help move things along post election.
ADDITION: Take a look at the prices that went through off market this morning, someone sure thinks its going higher.
Others may not agree with this at all but, in my opinion there will be fewer and fewer 'shock headlines' like this that push the SP down.
It is in the long term a good investment that's sitting well undervalued with a current PE of 3.99, it is slowly drifting upwards as I am of the opinion that a lot of the issues have been priced in. Yesterdays webcast gave good reassurance of several things; that the work is on track, the more complex work (CBD's) is behind them, and the internet market is changing quite dramatically (there were some stats about the increase in online video, both year on year, and as a proportion of total internet use that were quite astounding, but not unexpected).
I will keep topping up as these opportunities present themselves, as I move more of my portfolio from short term positions to long term, for the (eventual) coming correction, as I'm sure many others are. I think this is a good long term play if you are aware of the risks and are following the developments, and I believe many of the issues have already been priced in.