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MAQ - Macquarie Telecom

prawn_86

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Cant believe there isn't a thread/

Nothing to do with Macquarie bank. They are a business to business telecom provider and looking at moving into the hosting space in a big way.

Have gone from $1 to $8 in the last 3 years and $5 to $8 this year alone.

Currently paying a div of 2.3% and sitting at a PE of 10. Failry tight registry with circa 30% being held by the Tudehopes (founders)

Anyone got any views?
 

prawn_86

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How is this so with no volume please tell us more..... must meet the minimium
Cant say i understand your question. Care to elaborate?

They have low volumes trading because a high % is held by the top 20 holders; if that's what you meant
 
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Cant say i understand your question. Care to elaborate?

They have low volumes trading because a high % is held by the top 20 holders; if that's what you meant
Sorry must meet the minium meant the minium post, with regards to the stock a great rise but very little volume traded, i have not seen a chart like this before
 

prawn_86

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Up another 5% today. Only 10k shares on offer from 3 sellers.

Extremely thin volume but still powers upwards :confused:
 

prawn_86

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MAQ issued an earnings upgrade today. I actually hold a parcel as my fiance works for them. Extremely thin volumes and my valuation placed their IV at $9.50 before this upgrade, so i will have to redo it tonight :)

Strong interest in their data centres also so much so they are spending millions building a new one

Macquarie Telecom maintains a strong balance sheet with cash and cash equivalents of $45.4 million and no debt as at 31 December 2010. This cash balance is after payment of a full year dividend of $8.3 million in October 2010 and the $10.8 million purchase of a 215,000 square feet site in North Ryde to accommodate Macquarie Telecom’s new data centre facility, Intellicentre 2.
 

nulla nulla

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Share holders:

Claiward Pty Ltd 60.36%
Cogent Nominees Pty Limited 8.89%
National Nominees Limited 6.51%
Hunter Hall Investment Management 8.70%

Total 84.46%

Bit of an overhang. Only 15% of shares for retail investors.

Directors:

Mr Robert A Kaye Non-Executive Chairman 19/06/2001
Mr Stephen Butler Non-Executive Director (other) 26/07/2004
Mr David Tudehope Chief Executive Officer 01/01/1992
Mr Aidan Tudehope Managing Director 01/01/1992
Mr John Palfreyman Non-Executive Director (other) 26/07/2004

Is there a link to MacQuarie Bank? Management fees?

(Not sure how accurate/current the above info is, copied from Comsec)
 

prawn_86

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Bought more of these today. My IV analysis places their IV @ $17 based on RR of 10%. Even still at $13 at RR of 12%.

Data centre being built also so when that is complete it will add more to the bottom line. My fiance says they are retaining all their major clients and adding new ones. The differentiation point (for mobiles) is that customers can access 3 different networks, and then only need to deal with MAQ staff instead of long hold/frustrations with Optus/Voda etc

Is there a link to MacQuarie Bank? Management fees?
No link at all to Mac Bank, just an unfortunate name i guess.
 

prawn_86

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Rusults out, in line with expectations released a couple weeks ago.

NPAT near 10m, EPS of 46cps. Interim div of 10cps. All roughly double pcp.

They pretty much said it all in their guidance a couple weeks ago, but no nasty shocks. Currently on a PE of 26, which is a bit high i think but my valuation still puts them between 13 - 17 dollars per share (currently trading at $12)
 

zac

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Not sure if forecasts have changed as my IV has the company around the $12 mark with 10%RR.

One thing im interested to learn is the company has made a loss except for the last 2 years, whys that?
As in why of recent is it making good headway.
Anything to do with the government myschool contract?
 
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Hi All,

I'm looking at making an entry into MAQ as a value investment. The last couple years have seen earnings and the share price both grow substantially, particularly due to the hosting side of the business. Some money has been further invested into the hosting area and I'm curious as to what other may value MAQ at and if they think its a good buy at the moment, where its heading etc etc.

I believe the expansion could grow earnings quite a bit further as almost every business moves towards having a web presence and also hosting their software etc offsite through Cloud.

I'm not at home at the moment so can't post my valuation (from memory it was around $13) and would be appreciative of any input. My one concern is the tight share registry and hence lack of liquidity which could prove an annoyance if it came time to sell in the future. However this could also mean any earnings upgrade/growth could really put a rocket under the share price.

All views appreciated.
 

prawn_86

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Hi Kermit,

As per my last post on this thread my valuation has them at around $14.

They do have good management, healthy balance sheet and good long term goals. Illiquidity is ok in my books if you are willing to hold for the longer term.
 
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Hi All,

I'm looking at making an entry into MAQ as a value investment. The last couple years have seen earnings and the share price both grow substantially, particularly due to the hosting side of the business. Some money has been further invested into the hosting area and I'm curious as to what other may value MAQ at and if they think its a good buy at the moment, where its heading etc etc.

I believe the expansion could grow earnings quite a bit further as almost every business moves towards having a web presence and also hosting their software etc offsite through Cloud.

I'm not at home at the moment so can't post my valuation (from memory it was around $13) and would be appreciative of any input. My one concern is the tight share registry and hence lack of liquidity which could prove an annoyance if it came time to sell in the future. However this could also mean any earnings upgrade/growth could really put a rocket under the share price.

All views appreciated.
Kermit

I had a look at MAQ a while back. It's hard to get too excited about a company who's revenue has barely moved over the last 10 years has OK margins and is about to try and get into very capital intensive business -- cloud computing. Their last half PP&E purchases were more than the entire last year's purchases, and outstripped OCF. Granted 6 months a trend does not make, but I decided for those reasons not to look too much further into the business. If you want to get an idea of the capex heavy nature of the business have a look at Rackspace in the US.
 
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Kermit

I had a look at MAQ a while back. It's hard to get too excited about a company who's revenue has barely moved over the last 10 years has OK margins and is about to try and get into very capital intensive business -- cloud computing. Their last half PP&E purchases were more than the entire last year's purchases, and outstripped OCF. Granted 6 months a trend does not make, but I decided for those reasons not to look too much further into the business. If you want to get an idea of the capex heavy nature of the business have a look at Rackspace in the US.
Thanks McLovin, I do think MAQ is undervalued but the liquidity situation has pushed me down another path with so many opportunities in the market at the moment. I haven't made any entries yet while the market is in free fall but looking at HSN and MCE for starters.
 

prawn_86

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Not a lot happening here. Overing around the $9 mark for a month or so now.

Where will the next push come for growth in the business?? I know they are focusing on data centres, but can they be competitive in that arena?
 

prawn_86

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I'll keep talking to myself a couple times a year in this thread :)

HY out today, they are definitely being squeezed on their voice and mobile divisions, and a lot of capex getting their data centres up and running.

Maintaining 12cent dividend.

Looks as though their big hopes are government contracts and NBN, but it isnt as rosy for them as it was a couple years ago imo.

Volumes traded are always extremely low due to Tudehop family owning majority of the stock
 

explod

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http://bigcharts.marketwatch.com/ad...rsToggle=false&chartStyleToggle=false&state=9

On the 3 year monthly posted above we see a two year pennant yet to give us a clear indication of where from this consolidation. If we rule it off on the main bodies of the candles it is breaking to the downside and on volume a few changed hands last month with no real rise in price.

The problem I see with NBN rollout is the speed at which new technology is coming onto the market. Even us older duds are increasingly looking to our mobile phones for up to date temperature, weather and news headlines. Hope wayneL does not mind, but he is currently chatting ASF on his phone (ipad same thing now in my view), just a little trouble he says with spelling but it will be mastered.

So for me, if I held, I would be scratching me head a bit on this. :2twocents
 

So_Cynical

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Had my first detailed look at MAQ today, i think i must of seen it before but probably dismissed it immediately because the price was in a substantial up-trend..an instant turn off for me.

Leaving aside the flat revenues and falling margins...i like data and cloud and telcos in general, still lots of growth to come for the sector, i like how MAQ is very conservatively run and tightly held, and i like the fact that they don't issue shares willy nilly and raise capital.

I looked back to 2006 and couldn't find any Capital Raisings, share issues or acquisitions, no debt but they do have plans to spend money and have a 50m credit facility...one issue coming will be the 20M+ NBN access fee? (im sure there's an annual fee for NBN wholesalers) hard to see them being able to pay for this so might have to get access via (pay more) a wholesaler.

Interesting to see what happens.
 
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all that excitement (well, a couple of posters banging on) as MAQ rose from its post-GFC sleep 2009 to 2011 from a couple of bucks to $10, then a gradual decline to $5 in 2015. Which was a bad year, earnings declined a couple of years in a row, RoE went sub-zero, cashflow dropped but was still solid.

And what did they do; reduce debt, clean up balance sheet. Five years of (modest) revenue and EBITDA growth. As a company that is "engaged in the provision of telecommunication and hosting services to corporate and government customers within Australia. MAQ currently operates in two primary business divisions; Hosting (business and government) and Telco mobiles."

The big shift has been into higher margin hosting services, and into data centres, the cloud and cyber security. Now $27. Insto's on-board. Little Customer churn.
 
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