They used to be (and I think they still are) a well run mobile radio service provider but realised that this might not be enough to secure their future. I think their strategic move to add internet connectivity and cell phone coverage (for those remote rural areas) was a good one. Obviously - they paid too much for Farmside (given the significant goodwill write down), and they are still struggling to turn a profit out of it.
However - it does take time to grow different business structures and cultures together, and we can't really blame them for the markets hype after the merger. Looking forward it is important to assess whether the people running TTK have the capability to turn the merger into a success.
So - if you want to spend your Sunday doing some further research, here are some questions I'd look into:
* does the TTK board have sufficient experience and skills with mergers / turning companies around?
* if National wins: how well is TTK positioned to benefit from the additional broadband money promised by National?
* what's TTK's unique selling proposition in the Internet market - and how difficult would it be for the big boys to step in?
* how are the latest "connect remote" projects (Haast and Chatham Islands) going?
* any indications how the various TTK business units are growing together?
* how is staff morale at TTK (is the unique company culture the right thing for the people working there) and are there differences in different units?
Note: no loaded questions (I don't know the answers either) and would be interested to learn how you are going .... Enjoy your Sunday|
Discl: still holding (despite TTK being one of the worst performing stocks in my portfolio) and given the current dividend yield too cheap to sell ...