Technology & Telecommunications
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Show me the money
Tim Kelley
August 28, 2014
Michael Lewis’ 2003 book, Moneyball: The Art of Winning an Unfair Game, describes the approach taken by the Oakland Athletics baseball team in the early 2000s. Essentially, the approach involved determining which performance measures contributed the most to the outcome of a baseball game, and recruiting players that rated highly against those measures. continue…
by Tim Kelley Posted in Insightful Insights, Technology & Telecommunications, Value.able.
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An update on: AGI
Roger Montgomery
August 27, 2014
A number of investors have posted requests for us to look at Ainsworth Game Technology Ltd (ASX: AGI) following the sell-off in the market price yesterday. continue…
by Roger Montgomery Posted in Companies, Insightful Insights, Technology & Telecommunications.
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The internet of (almost) everything
Scott Shuttleworth
August 4, 2014
Last week, I came across an interesting article on Yahoo! Finance that presents examples of where Warren Buffett has done well – and not so well – in the retail sector. It attributes Buffett’s Achilles’ heel to the way that “the Internet is rapidly reshaping shopping habits and affecting Berkshire-owned retailers in ways they didn’t expect”. continue…
by Scott Shuttleworth Posted in Consumer discretionary, Technology & Telecommunications.
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Real estate chess: Buckle up!
Roger Montgomery
July 29, 2014
This is intriguing on so many levels. Game theory is being played out live over at REA Group’s realestate.com.au, and we are glued to our screens. Can a business with possession of several competitive advantages, including monopoly power, network effect and the most valuable competitive advantage – the ability to raise prices without a detrimental impact on unit sales volumes – lose its competitive advantage? continue…
by Roger Montgomery Posted in Property, Technology & Telecommunications.
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Amcom: Wins Contract with The University of Melbourne
Ben MacNevin
July 28, 2014
Amcom Telecommunications (ASX: AMM) has secured a contract with The University of Melbourne to provide its Unified Communication solutions to around 13,000 users. While the number of users is impressive, we believe that the deal will contribute modestly to earnings.
Unified Communications has the potential to be a key growth driver for Amcom as it provides a number of revenue streams such as handset sales, licensing fees and rental of data networks.
However, we understand that the University of Melbourne already has the devices that are compatible with Amcom’s unified solutions platform. What’s more, the University of Melbourne does not require a data network, as it is a member of AARNet – a high-speed fibre network that connects 38 Australian universities and the Australian CSIRO.
This means that Amcom is only receiving a fraction of the revenue it would otherwise receive from a new client.
The contract is certainly a step in the right direction for Amcom, as the more that Amcom can change professional behaviour towards unified communication, the more demand will ultimately flow to vendors over time. Amcom’s addressable market with AARNet is 200,000 users, so securing the first contract with The University of Melbourne will go some way in encouraging the other members to follow suit.
But if management is seeking to extract maximum value from its Unified Communications division, then it will need to acquire infrastructure in the eastern states. They certainly have the means to do so after raising $40 million of equity in June.
by Ben MacNevin Posted in Technology & Telecommunications.
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Aristocrat buys Video Gaming Technologies
Russell Muldoon
July 16, 2014
As already announced to the market, Aristocrat Leisure Limited (ASX: ALL) is preparing to undertake the biggest acquisition in its history, with an AU$1.494 billion all-cash takeover of US-based Video Game Technologies (VGT). continue…
by Russell Muldoon Posted in Companies, Technology & Telecommunications, Value.able.
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Is Vocus worth $6.10?
Russell Muldoon
July 10, 2014
Vocus worth $6.10?
On Tuesday, we reported on the exciting future for Vocus Communications (ASX: VOC) after their AU$107.7m acquisition of New Zealand’s largest ducted inter-city fibre optic network operator, FX Networks. continue…
by Russell Muldoon Posted in Companies, Insightful Insights, Takeovers, Technology & Telecommunications, Value.able.
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Vocus Communications announces sixth acquisition in four years
David Buckland
July 8, 2014
Vocus Communications (ASX: VOC) plans to acquire FX Networks Limited, New Zealand’s only ducted inter-city fibre optic network, for an enterprise value of NZ$116m (A$108m), or around 8 times EBITDA. This will be Vocus Communications’ sixth acquisition, and easily their largest, in the past four years. continue…
by David Buckland Posted in Insightful Insights, Takeovers, Technology & Telecommunications.
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What’s Next?
Ben MacNevin
June 5, 2014
NextDC (ASX: NXT), the developer and operator of data centres, is at an interesting cross roads. Having secured a national footprint, will the company continue to focus on expansion, or will it turn to demonstrating profitability? continue…
by Ben MacNevin Posted in Companies, Technology & Telecommunications.
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The case of Telstra
Scott Shuttleworth
May 26, 2014
While the market does its best at trying to distract and dissuade, we ignore its bipolar short-term nature and treat near-run market fluctuations as random. Instead, we think about (and focus on) uncovering companies that can substantially grow their worth – which moves much more slowly – over the long term. continue…
by Scott Shuttleworth Posted in Technology & Telecommunications.