Telstra has revealed the addition of almost one million new mobile services in the six months to December 2011, but Sensis revenues plummeted 24 percent in 12 months.
Micro cap specialist research firm, MicroEQUITIES, has selected iiNet as a "risky but potentially lucrative" share for inclusion to its micro|report recommended portfolio, following iiNet's drop in market value of more than 70 percent during the last eighteen months.
According to MicroEQUITIES' analysts, "iiNet has the largest deployed ADSL2 network in Australia with over 210 exchanges built. MicroEQUITIES believes that whilst iiNet stock has an inherently high risk profile, the potential reward should iiNet turn around its financial and operational underperformance is also quite considerable.
MicroEQUITIES says it values the strategic deal between iiNet and Powertel as a positive development, because it will permit increased monetisation of iiNet's expensive but rapid ADSL 2 network and allow iiNet to leverage its infrastructure, albeit by opening its network to competitors.
Furthermore, MicroEQUITIES believes that the upcoming ULL pricing decision is, on the balance of probabilities, likely to have a more favourable outcome for Telstra's competitors than for the incumbent operator.
According to the firm's micro|report micro cap-focussed investment newsletter "there is a significant chance that iiNet's stock may at some stage become involved in merger & acquisition activity as Amcom and PowerTel's holdings represent investments with different agendas and either of these entities could access the necessary financial resources needed to put a deal together."
iiNet will hold a five percent weighting in MicroEQUITIES' micro|report recommended portfolio. Other companies currently covered by MicroEQUITIES are Hostworks, Integrated Research, KLM Group, M2 TELECOMMUNICATIONS and Becker Entertainment.
David Bass
| For the fourth year in a row, IDC has placed content security provider Websense (NASDAQ: WBSN) at the top of the IDC Worldwide Web Security 2011 –…
How to Make Business Discovery Work for Your Business
Business Discovery takes its cues from consumer apps. Like Google, it encourages us- ers to hunt for and explore data without worrying about or even noticing the underly- ing technology. Their entire experience is working within an intuitive interface to get real-time, self-service results with only minimal training. ...more
Try an easy-to-use set of web-enabled
tools for business-class productivity services. Office 365 provides
anywhere-access to email, important documents, contacts, and calendars
on almost any device.
Latest Headlines from IT INDUSTRY
