When the big money comes out to play .. all we wanted was a boring safe investment
Things can change quickly when the big money gets excited.
All it took was the regulator to scale back their severe (and ill-informed) copper lines revenue-cap punishment ... to a moderate revenue punishment (cripes!). CNU has tested many investors patience this past year or so, or more accurately, government regulatory intervention blindsided investors, testing not only their patience, but even undermining the viability of core NZ telecommunications services and their development. Govt really should stay well away from price setting and picking winners.
Despite one's views on whether it is really the done thing for Govt to bring a business to market (govt privatises bringing TEL to market - conditions market to safe reliable earnings - then splits TEL into CNU & TEL (TEL rebrands to SPK)) then lets their regulator get a whiff and crucifies arguably the most conservative end of the share market investors - those who prefer safe stable earners, let alone putting at risk the rollout of UFB to citizens and businesses!? Despicable behaviour, ComCom should be ashamed of themselves.
This company has been a govt regulators 'whipping boy' and throughout the ordeal shown great resolve, outstanding professionalism, excellent leadership and unquestionable dedication to financial viability. Mr Ratcliffe, my hat is off to you, your management team, and all your staff. A more credible performance under intense and severe firepower is ... well, unprecedented, IMO, congratulations.
This chart is for you CNU, staff and management. I'm sure a few investors like it too.
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