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AMM - Amcom Telecommunications

Discussion in 'Stocks 0-H' started by etingsoon, Aug 31, 2009.

  1. etingsoon

    etingsoon KFT

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    Hi

    I am wondering if anyone have any idea on AMM Share?

    Before recession, the AMM share sitting at $0.17 and now it has gone up to $0.20. During the recession, the AMM share did get down to $0.10 but recovering very quickly.

    Does anyone bought this share?

    Cheers

    Andrew
     
  2. graeme155

    graeme155

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    This seems like a well run company and is a growth field of the internet and optical fiber. The market is predicted to double every 2 to 3 years.

    Mostly deal with business in metro area and advise most of their contracts are for two years and the pack back time to lay the cable is one year. They say their best income growth is when they get new customers in buildings that has their optical connected to already.

    Intersted to know others views.

    Gra
     
  3. So_Cynical

    So_Cynical The Contrarian Averager

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    Amcom was added to my portfolio today @ 0.32 :) my first Telco/ISP/Data service provider...i think there is some potential for "cloud computing" to be, if not the next big thing then certainly one of the next big things and AMM have the track record, fibre experience and vision to deliver the next step in networked computing.

    Things to like about Amcom
    • The largest fibre network in Metro Perth (1496 Km), Darwin, Adelaide (282 Km) and Alice.
    • Ten years of experience in the fibre internet business.
    • Amnet revenue diversity, Corporates 48% Govts 28% Wholesale 24%
    • Is a good fit and will almost certainly be partnering/working closely with NBN Co.
    • First mover advantage to emerging Cloud based products.
    • Owns 23% of iiNet (IIN) Aust's 2nd largest DSL Broadband internet service provider.

    http://www.amcom.com.au/Home.aspx

    Recent AGM presentation below

    http://clients.weblink.com.au/clients/amcom2/article.asp?asx=AMM&view=6515899

    Not to hard to imagine the SP rallying into the ex date :dunno: Anyway some nice numbers and chart below.
    ~
     

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  4. skc

    skc Goldmember

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    Interesting company. Haven't heard of these guys before but they look lke a good performer in the past few years.

    While I agree cloud computing will one of the next big things, I've always thought the money is in the IT companies (e.g. providing software-as-a-service) rather than network owners and ISPs. Could be wrong though as my knowledge of cloud computing is pretty poor.

    Also, how will they work with the NBN? Is the NBN buying their fibre network? Or just their customers at the wholesale level?
     
  5. So_Cynical

    So_Cynical The Contrarian Averager

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    Just guessing (punting) on my part that NBN Co wont want to lay fibre where there is already fibre...Amcom have a extensive network in Perth and backbones in Adelaide, Darwin and the Alice...the consensus of the Tech heads is that NBN Co will use fibre that's already in place when they can.

    For example Telstra has a fibre cable between Melb and Perth so NBN Co will use that rather than spend 400 mill+ on laying a new one on top of it...i reckon NBN Co will lease or come up with some sort of deal with Amcom to use there fibre networks, there's even some chance that NBN Co would contract Amcom to run there Perth , Adelaide and Darwin networks as Amcom would already have extensive switching equipment etc in place.
     
  6. So_Cynical

    So_Cynical The Contrarian Averager

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    The AMM share price has been bouncing along support at 31.5 for about 3 weeks now so looks like my entry was about right...half year results should be out late next week, last weeks BlueFire announcement was a small positive.

    "Amcom expands Cloud offering with BlueFire Partnership"

    "Leading telecom company Amcom Telecommunications Limited (“Amcom’’) (ASX: AMM) has partnered with BlueFire Corporation, reinforcing the strategic direction of the business in the emerging Cloud market. Amcom entered the Hosted Voice market in May last year, following the strategic acquisition of IP Systems. Amcom CEO Clive Stein said the partnership with BlueFire fast tracks Amcom’s entry into the growing Cloud market."

    Read the whole thing.

    http://clients.weblink.com.au/clients/amcom2/article.asp?asx=AMM&view=6529402

    http://www.bluefire.com.au/
     
  7. moreld

    moreld

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  8. So_Cynical

    So_Cynical The Contrarian Averager

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    Re: FY11 1H Results out

    Still the headline numbers and percentages are impressive.

    • Revenue $41m – up 43%
    • EBITDA $13.8m – up 33%
    • EBIT $9.6m – up 37%
    • Operating cash flow $13.1m – up 42%
    • Interim fully franked dividend of 0.6 cents – up 50%
    • Earnings guidance for 100% owned operations (excluding iiNet) is for at least a 25% increase in net profit for FY11.

    :) once the market moves on from its current jitters...these results have to be good for a SP re-rate of at-least a couple of cents...IMO.

    http://clients.weblink.com.au/clients/amcom2/article.asp?asx=AMM&view=6530226
     
  9. So_Cynical

    So_Cynical The Contrarian Averager

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    I got a few more today (0.28) at half a cent off today's close and low..extremely difficult for me to envisage in any way shape or form how the Japanese situation can impact Amcom financially.

    Buying at these prices is simply taking advantage of other peoples fear and confusion...i kinda feel a little bit like a cheat, taking advantage of someone else's gullibility/weakness etc.
     
  10. So_Cynical

    So_Cynical The Contrarian Averager

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    Amcom's SP seemed to convincingly break through 33 cents toady touching 34 intra day...i have a partial sell order in at 355 :dunno: the post tsunami SP rise has been spectacular...perhaps the coming top will be equally spectacular?
    ~
     

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  11. So_Cynical

    So_Cynical The Contrarian Averager

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    The AMM share price had a bit of a gap up today :) going straight past my 0.355 sell order with the stock opening at 0.37 :dunno: i have to assume that some very big buy orders just took out all the sellers up to that level with over 6 million AMM shares changing hands today.

    And my tax bill just keeps on growing :p::( as per the plan ive left the profit in and will look for a re-entry at the next substantial dip...AMM is a keeper and im in for the long haul and dividend yield.

    -----------------

    Today's price action makes the people selling 3 weeks ago at under 30 cents look pretty darn stupid.
     
  12. maximusnz

    maximusnz

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    Well you lucky you had the help of Kris's punters with those high volume through put.
     
  13. So_Cynical

    So_Cynical The Contrarian Averager

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    Did a tipping sheet like AMM :dunno: who and or what are Kris's punters? and why didn't they just pay me the 355 i was after :dunno: not that im complaining about the extra 1.5 cents per share i received. :)
     
  14. BigLeon

    BigLeon

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    Hi Guys

    I've been holding AMM since 2009 and loving every minute.

    As a telco industry member I'm happy to share a few notes about the fundamental business which are worth knowing and make AMM (IMHO) a great buy. If you have any questions about AMM's relative strengths in the business telco market I'm happy to field those as well.

    Core product is high barrier to entry
    Amcom's core product, fibre-based data services for Enterprise and Government, have a high barrier to entry for new players, and adding new services costs virtually nothing (except for fibre build cost - $100+ per metre so not viable for a new player to build a network from scratch)

    New high-value services bolt onto legacy fibre business
    Amcom's new voice and cloud services leverage this fibre asset further as a channel for delivery of new services, with Amcom controlling end-to-end quality of service because they are using their own network. Moving up the value chain positions Amcom beyond basic plumbing services and more sticky, higher value business.

    Cross-selling opportunities for new services
    The existing base of clients mean Amcom's sales force can very effectively cross-sell VOIP and Cloud solutions to their existing clients. Lower acquisition cost for new business.

    Strong margin of safety for a growth business
    Selling for 13x earnings, AMM is still a bargain for a business which is still growing rapidly, especially with new services coming on stream. Debt/Equity is 13%, and AMM have cash on hand of $14m which should satisfy immediate capex needs.

    Strong NT presence
    Telstra was the only carrier with extensive infrastructure in NT, until Amcom came along and won 5Mpa of new business from the Government - this justified a big fibre rollout which they can now leverage for organic growth and private sector business too. The cloud and IP Telephony services they now offer are a huge opportunity for big wins in NT. When Nextgen finishes their blackspots program (slated for September this year), backhaul costs go down and profitability goes up.

    I have written about AMM here and their most recent half-year results here on my blog.
     
  15. So_Cynical

    So_Cynical The Contrarian Averager

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    Interesting blog, i added a couple to my watchlists...good luck with your small cap value investing.
     
  16. mrthong

    mrthong

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    August 17th, when they distribute there iiNet shares to their shareholders.
     
  17. So_Cynical

    So_Cynical The Contrarian Averager

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    Yes and we can expect the SP to drop accordingly, thus giving us longer term outlook holders a chance to get in at what should be a moment of SP weakness when combined with the current general market negative sentiment.

    I added Iinet to my portfolio today in anticipation of the distribution. :)
     
  18. skc

    skc Goldmember

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    If the SP drop accordingly that's not a weakness. It has to drop more than warranted for it to be a buying opportunity. Don't forget there's a 3-for-1 consolidation after the IIN distribution as well.

    Personally I think IIN is cheap but I wouldn't buy them now. The distribution will create additional supply. Not new shares, but new shareholders, some of whom may not want to hold IIN directly. In fact I suspect IIN is being shorted by those AMM holders who wanted to secure the price 3 weeks ago since the announcement. Although I haven't checked the ASIC short sells report to verify that. If IIN falls by a lot from this overhang then it might be a good time for a trade.
     
  19. So_Cynical

    So_Cynical The Contrarian Averager

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    Time will tell...i have seen consolidations go both ways, i figure its a bear market so there's some potential for an over reaction, as there is potential for an IIN sell off as all those shares hit the market...i have enough dry power to either take another bite at the AMM cherry or take an average down on my IIN position (acquired today) but not both. :)
     
  20. mrthong

    mrthong

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    SP did drop accordingly. purchased them at .34 the other day. now they're .26 each. :( i purchased before the ex date that means ill be receiving some iiNET shares right? im still new to trading. :D
     
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