# MP1 - Megaport Limited



## System (4 December 2015)

Megaport was founded in 2013 with the aim of becoming a global leader in the fast growing elastic interconnection services market. Using Software Defined Networking the Company has developed a platform that provides customers with the ability to provision interconnection services between their network and other networks and cloud providers already connected to the Megaport Fabric. Services can be directly controlled by the customer via a device such as a mobile phone or tablet, their computer or their open API.

It is anticipated that MP1 will list on the ASX during December 2015.

http://www.megaport.com


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## rnr (28 April 2019)

The chart is certainly interesting.


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## rnr (30 April 2019)

Still moving up slowly.


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## greggles (12 November 2019)

rnr said:


> Still moving up slowly.




MP1 got all the way up to $10.50 before getting beaten back to $7.50 where it appears to have found support.

$9 and $9.50 looks like it may present some difficulty for bulls, but if it gets through those levels with any conviction, it may well take another crack at its previous highs.

Last couple of days have been pretty bullish.


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## So_Cynical (13 November 2019)

greggles said:


> MP1 got all the way up to $10.50 before getting beaten back to $7.50 where it appears to have found support.




I looked at this yesterday, watched a montgomery video, Megaports cash burn is 2 million a month and yet somehow this equates to a 
market cap of 1.1 billion dollars, we all like a growth story and potential but many of these tales of wonder and greatness will end in tears.


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## Dona Ferentes (18 December 2019)

So_Cynical said:


> I looked at this yesterday, watched a montgomery video, Megaports cash burn is 2 million a month and yet somehow this equates to a
> market cap of 1.1 billion dollars, we all like a growth story and potential but many of these tales of wonder and greatness will end in tears.




God old _Rearview Roger. 
_
*Another view .....* UBS has increased its price target on *Megaport* following the company's $62 million capital rising, saying it gave the company plenty of headroom to accelerate its rollout. Maintaining its 'buy' rating on the stock, UBS lifted its price target from $11.30 to $11.55, more than 20 per cent above its Tuesday close.

The broker said the company's capital raising had "well and truly"* de-risked funding requirements *until Megaport's forecast *break even point of 2021*, would allow expansion into new geography and left headroom for any further strategic investments. 
_
"Our thesis remains unchanged – Megaport will be a major beneficiary of the data generation over the next decade, with a large first mover advantage, low capital intensity and material operating leverage as the portfolio matures," said analyst Tim Plumbe. "We recognise the high multiples, but highlight the strong revenue growth profile."_


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## Dona Ferentes (19 December 2019)

MP1 cruising through $11


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## Trav. (19 December 2019)

Also interested to see what what the effect of being added to the ASX200 will be.


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## Dona Ferentes (18 January 2020)

Trav. said:


> Also interested to see what what the effect of being added to the ASX200 will be.



 So, would that have been a signal for early money to get out? MP1 sort of dipped, late Dec, but has recovered from $10 to $11+ again.

I'm not entirely sure what "_a provider of elasticity connectivity and network services interconnection across any location, to any services by SDN based, ubiquitous Ethernet fabric allowing our customers wider coverage, speed to market while reducing costs and enabling real-time provisioning across one platform_" does, but owning it since early 2016 and participating in Capital Raisings has enhanced my portfolio.


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## Dona Ferentes (13 February 2020)

the buying is back (new high), after yesterday's Half Yearly. 







> Megaport continues growth trajectory with solid 1HFY20 performance, including new and expanded data centre and network partnerships, while increasing reported revenue by 70% and Monthly Recurring Revenue 68%. The Company now operates in 21 countries with the launch of services in Japan



Still making a net loss (capital raise of $62mill helps) and EBITDA numbers heading in right direction.


> _Coming into the second half of the year, we will continue to focus on ecosystem development, adding new service providers to our marketplace and integrating with more cloud on-ramps as cloud providers expand their platforms to new markets. As we evolve our platform, our development teams will drive more system automation and features that enable rapid provisioning of services while further integrating with service providers_.


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## Dona Ferentes (8 April 2020)

Another capital raising. Hungry beasts, these data stories


> RBC Capital Markets and UBS kicked off a $50 million raising after market on Tuesday, seeking bids for new stock at $9.50 a share. The placement is priced at an 8.9 per cent discount to its Tuesday close.
> 
> There were 5.3 million shares up for grabs representing a 3.6 per cent stake in the company, according to terms sent to funds.





> "Proceeds from the placement will be applied to further accelerate sales, product development and platform expansion opportunities in the near and medium term. Additionally the company is looking to provide some additional funding capability for future strategic opportunities," the term sheet said



And a SPP, but we all know that's crumbs for the retail crowd. Scale back like always


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## Dona Ferentes (14 April 2020)

_"The surge in working from home as a result of the coronavirus crisis has meant Megaport (MP1) has benefited from an increase in connections via virtual desktop infrastructure and cloud-based applications. Telecommunications companies and data centres are typically considered critical infrastructure and remain in “safe mode” operations despite the lock-downs"_.

Should it raise the full A$65mn, this will take MP1's total equity raisings to A$310mn since September 2016. It last raised over A$60mn in December 2019.

Four brokers covering MP1, two are Buys and 2 are Hold/ Neutral. Consensus Target is $11.98  


> In its third quarter update the company achieved the acceleration in uptake that *UBS *was looking for, particularly in terms of the number of ports added and the incremental monthly recurring revenue. Port and services sales accelerated by 11% and 12% respectively in the the third quarter. A weaker Australian dollar also provide benefits as around 60% of revenues are generated offshore. Third quarter revenue grew 10% to $15.2m.
> 
> The business is now moving closer to a maiden positive operating earnings outcome, expected in the fourth quarter of FY21. This is perceived as a major turning point .. and, with growth momentum accelerating, the broker’s rating is upgraded to Buy from Neutral. UBS recognises the current market volatility and the flight-to-quality that has underpinned the share price but considers any near-term weakness remains a good buying opportunity.



and then 







> UBS is comfortable around expectations for the shift to the cloud amid continued growth in both Microsoft Azure and Amazon Web Services. The broker expects compound growth of 18% in 2017-21 for global public cloud business. UBS has its own survey data which shows increasing expenditure from existing users on the cloud, along with 40-45% of respondents planning to use multiple cloud products. The broker believes an age is looming where data will dominate new technology and the company’s software-defined-network provides the path for this data to move between the cloud and lower-tiered data centres.



whereas *Goldman Sachs* has a 







> ... defensive earnings outlook relative to other companies under its coverage and that Megaport is on track to achieve FY20 revenue forecasts. Still, [it] retains a Neutral rating and $10.85 target, believing the earnings and balance sheet are reflected in the current valuation. It thinks the company’s solution is relevant for corporates that are likely to be accelerating the migration of infrastructure to the cloud. Ord Minnett agrees and anticipates further opportunities after the crisis has passed.



In a Covid-19 update, Megaport had already employed mobile extensively as around 60% of its staff were already working remotely before the crisis. Hence, moving to 100% was relatively smooth. Moreover, in February, Megaport flagged events in China and, concerned about potential delays in the supply chain, ordered networking equipment required to fill plans for 380 connections to data centres by June 2020.


> *Morgans *expects that the outcome of the coronavirus crisis will result in existing customers consuming more services and it may well be the tipping point whereby Megaport crosses into the mainstream, helping individuals with their network connections to the cloud and making remote access available to many other dedicated point-to-point solutions.




(Hold)


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## Dona Ferentes (7 May 2020)

another raise, another enthusiastic uptake, another scaleback for retail



> SPP applications totalling in excess of $99 million, with a participation rate of over 60% of eligible shareholders. Based on the extremely strong demand from retail shareholders, an assessment of its capital requirements and feedback from Megaport’s retail shareholders, the Board of Megaport has determined to increase the equity raised under the SPP by 50% to $22.5 million (2,368,421 fully paid ordinary shares), with applicants to be scaled back on a pro-rata basis. Shares will be issued at $9.50 each.



oh well! Less than a quarter of what I applied for (went for full $30K).

SP now $13.75, an all-time high


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## Dona Ferentes (14 May 2020)

SPP well oversubscribed. applied for $30K  *@ $9.50* received 713 shares =  $6,773.50.  Refund in bank tonight

bit of early bird profit taking today


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## Dona Ferentes (21 May 2020)

the serial entrepreneur strikes again


> today the sell down of 5,000,000 shares in the Company held by Megaport Chairman, Mr Bevan Slattery. The sale of [the] shares (equivalent to 3.27% of the Company’s issued capital) was underwritten by UBS AG, Australia Branch at a price of* $13.00 *per share and distributed to institutional investors.





> Following the sell down, Mr Slattery will continue to hold 13,037,607 shares in Megaport (equivalent to 8.52% of the Company’s issued capital). Mr Slattery intends to use the proceeds from the sale to facilitate ongoing investment opportunities.





> Mr Slattery said, “I am absolutely committed to ensuring the success of Megaport and will continue to provide strategic direction as the Company continues to grow. I have no intention of selling any further shares in the next 12 months and intend to remain a significant shareholder in the Company for the foreseeable future. I look forward to continuing to lead the board and support the Company well into the future".



Slattery didn't participate in the rights issue a while back ($8, from memory) but sold some then to put into SLC (at a price higher than now)


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## Dona Ferentes (22 May 2020)

it was for even less .... from 05 May 2019







> Bevan Slattery has sold 3,300,000 shares (equivalent to 2.46% of issued capital) , underwritten by UBS AG, Australia Branch, at a price of $5.11 and distributed to institutional investors. Following the selldown, Mr Slattery will continue to hold 18,162,607 shares in the Company (equivalent to 13.52% of the Company's issued capital).
> 
> Mr Slattery will be using the proceeds from the sale to _*fund early stage development of two new technology ventures*_



but not a lot of belief from others (data centres, yadda yadda)


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## Dona Ferentes (17 July 2020)

_Two analysts discuss stocks:_

_*Livewire Markets:*_ Okay, let's round out our top five. *Megaport*, one of the new kids on the block in the Australian technology scene. Buy, hold, or sell?

*Jun Bei Liu (Tribeca):* *It's a buy.* I like Megaport because Megaport is probably the only cloud infrastructure company that you can find in this market. Yes, there's NEXTDC but NEXTDC is the future, essentially the future property trust. They build assets for companies to use and so that's more cloud-related and demand for that type of product is going through the roof and COVID certainly has speeded up that kind of adoption.

Now, Megaport is the future Telstra and it has innovated that space and it's global. It's the largest in its sector because it's the innovator and it's got enough runway for it to continue to expand global dominance. For me, it's one of the rare exposure to that space in the Australian market.

*Livewire Markets:* Okay. Eleanor, moving to the cloud, it's been one of the major trends in the structural shifts that we've seen accelerate through the past few months. Buy, hold, or sell on Megaport?

_*Eleanor Swanson (Firetrail): *_Jun Bei, I promise I'm not copying you but I'm a buyer on Megaport as well. What the company does is they facilitate the transfer of data by virtual cloud connections and they've got an amazing first mover advantage in building out their network footprint. The company has currently got 600 data centres, that is double their nearest competitor, and they've also managed to double the number of data centres installed on their network over the last 12 months.

We expect the company to continue these phenomenal growth rates. And in addition they've got a new product pipeline which we expect to support valuation going forward, so *it's a buy*.

(_hold <all the way up>_)


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## Dona Ferentes (23 July 2020)

For the quarter ended June 2020, Megaport reported solid revenue growth of 12%, quarter on quarter, to total $17 million. Megaport’s year-on-year quarterly growth grew even more strongly, up by 66%.

Megaport’s recurring revenue base also continues to grow. The company’s monthly recurring revenue (MRR) totalled $5.7 million for the month of June. This was a year-on-year quarterly increase of 57%, and an increase of 4% on the previous quarter.

Megaport has a subscription-based billing model, which provides it with a sticky recurring revenue stream. It receives revenue from its network access points, as well as from the services that customers consume within its ecosystem.

Megaport also reported a strong quarter in terms of receipts from customers, which were up 44% on the prior quarter to $20 million. On a year-on-year basis, Megaport’s total customer base has now grown by 24% to reach 1,842.

Megaport also announced a strong cash position of $166.9 million at the end of June.

Megaport continues to grow the number of total installed data centres within its cloud ecosystem. Total installed data centres for Megaport has now have reached 366, which is 11% higher than last quarter, and 22% higher than the same quarter last year. The number of enabled data centres within its ecosystem also is growing strongly, up 11% on the prior quarter.

_- already expected; some took opportunity to sell down, and others bought in._


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## Dona Ferentes (18 August 2020)

up 10% on this news. 
(The more acronyms the better, it would seem)

_MP1 announces the upcoming release of Megaport Virtual Edge , a product innovation that will enable the hosting of Network Functions Virtualization, such as SD-WAN capabilities, directly on Megaport’s global Software Defined Network. With MVE customers will tap into Megaport’s extensive platform reach to deploy and extend their network functions closer to the edge, in real time, and without the need to deploy hardware. Megaport and Cisco are collaborating to enable Cisco SD-WAN as the first use case on MVE._


> “As enterprises and service providers begin to fully understand the benefits of SD-WAN, the ability for Megaport customers to easily and in minutes ‘spin up’ SD-WAN virtual appliances around the world on our platform is a big enabler for global organisations,” said Vincent English, CEO of Megaport. “Having these virtual appliances fully integrated into the Megaport Interconnection Platform leveraging our multicloud connectivity takes this to another level.”


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## bk1 (18 August 2020)

Full year results will be released pre ASX open tomorrow followed by a briefing. The timing of the two events ( today and tomorrow) ....serendipity?


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## Dona Ferentes (19 August 2020)

all time high

Monday night's Global update laid the foundations
Wednesday's Full Year Result pushed it higher:
Growth in Ports, Services, and Revenue







Revenue $58.0M up 66%
Proﬁt after direct network costs of $29.5M improved by $17.6M
Proﬁt after direct network cost margin of 51% improved from 34% in FY19
Normalised EBITDA loss of $19.9M, 34% of revenue (FY19: 70% of revenue)







(Hold; free carry) (x7 bags)


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## Dona Ferentes (13 September 2020)

Dona Ferentes said:


> _Analysts discuss stocks (and promote their books): From July
> *Livewire Markets:*_ Okay, let's round out our top five. *Megaport*, one of the new kids on the block in the Australian technology scene. Buy, hold, or sell?
> *Jun Bei Liu (Tribeca):* *It's a buy.* I like Megaport because Megaport is probably the only cloud infrastructure company that you can find in this market. Yes, there's NEXTDC but NEXTDC is the future, essentially the future property trust. They build assets for companies to use and so that's more cloud-related and demand for that type of product is going through the roof and COVID certainly has speeded up that kind of adoption.
> Now, Megaport is the future Telstra and it has innovated that space and it's global. It's the largest in its sector because it's the innovator and it's got enough runway for it to continue to expand global dominance. For me, it's one of the rare exposure to that space in the Australian market.





> *Livewire Markets:* Okay. Eleanor, moving to the cloud, it's been one of the major trends in the structural shifts that we've seen accelerate through the past few months. Buy, hold, or sell on Megaport?
> _*Eleanor Swanson (Firetrail): *_Jun Bei, I promise I'm not copying you but I'm a buyer on Megaport as well. What the company does is they facilitate the transfer of data by virtual cloud connections and they've got an amazing first mover advantage in building out their network footprint. The company has currently got 600 data centres, that is double their nearest competitor, and they've also managed to double the number of data centres installed on their network over the last 12 months. We expect the company to continue these phenomenal growth rates. And in addition they've got a new product pipeline which we expect to support valuation going forward, so *it's a buy*.



Late June, Megaport added to the S&P/ASX200 Index, and the broker chatter lifts..... as well as the July comments (above), then in August:







> *Livewire Markets :* One company that's had a bit of a breather in its share price run is Megaport. Buy, hold, sell?
> _*Tobias Yao (WAM)*_ (Hold): Megaport is a hold for us. We really like the business long-term. It's a leader in its niche. It's about two to three times larger than the next competitor. It's exposed to cloud adoption and it's helping businesses connect to their cloud service providers. It's a hold for us purely because we're looking for a better entry point.





> * Livewire Markets*: Okay. It's all about the cloud. Buy, hold, sell on Megaport?
> *Arden Jennings (Ausbil)* (Buy): Yeah, it's a buy for us, Vishal. High conviction position within our smaller micro-cap funds. Megaport, as Tobias pointed out, is really exposed to the adoption of the cloud. And Megaport's providing network as a service, connecting up cloud technologies amongst various data centres globally. So if there's one chart that I could point our listeners to, it would be the customer cohort chart they produce annually in their results. And it demonstrates that the customers love Megaport's product and that's shown in the adoption of their services and also the monthly revenue that they're receiving per port. And it's backed by great management and Bevan Slattery as founder is still on the board and still a significant shareholder. So we see the pullback in the share price as definitely an opportunity. And I think this is one where you can let your winners run.



and in September







> *Matthew Kidman (Livewire Markets):* Okay. Let's jump into an area you  know well. Data centres, the cloud, Megaport, appropriate name. Taking  on the world in that area. Buy, hold or sell?
> *Gary Rollo (Montgomery):*  Megaport is a buy. Look, this company has an interesting proposition, not just here in Australia, but globally. And, as the name suggests,   it is solving a problem that was not around yesterday. Corporate computing  networks were designed for the old age. In the new world of cloud, you  don't know what you've got to connect to and when. Megaport solves that  problem, and it solves it in an elegant way. It has got a huge addressable  market. And for us, that is one of the most interesting tech stories on  the ASX and globally today.





> *Matthew Kidman:* Megaport: mega by name, mega by price. Went up about 120 per cent since the [March] bottom. Chris, buy, hold or sell?
> *Chris Stott (1851 Capital):* *Sell*. So, really good company, Matthew, but the valuation is incredibly  stretched to us. 26 times revenue, yet to be positive in terms of from  an EBITDA perspective. So, we think it has certainly had a strong run, as  you mentioned, off the lows in March. So, sell.



_- not that all of that means a hill of beans, but grist to the mill._


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## Dona Ferentes (21 October 2020)

_don't meet lofty (unrealistic?) expectations, and what happens?

Megaport has reported a strong increase in product uptake and customers through the first quarter of the year. Quarterly new ports rose 10 per cent quarter on quarter with 138 new customers added, an increase of 7 per cent. Both were record quarterly increases. North America was the strongest contributor, responding for 63 per cent of growth in new customers and 58 per cent of new ports._


> “Our investments in North America, in terms of network footprint and commercial capabilities, yielded excellent results this quarter and contributed significantly to our record quarterly Port and customer performance," said Megaport chief executive Vincent English. "This will have a positive impact on MRR (monthly recurring revenue) from Q2 onwards. North America is our fastest growing region, with USD revenues growing 11 per cent QoQ and now accounting for 47 per cent of our total revenue."


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## Dona Ferentes (20 January 2021)

Dona Ferentes said:


> _don't meet lofty (unrealistic?) expectations, and what happens?_
> 
> ...



_Megaport reports solid quarterly growth with underlying Monthly Recurring Revenue 1 up 10% and reported Monthly Recurring Revenue up 8% QoQ. Total Services were up 6%, and Megaport Cloud Router up 11% in 2Q FY21_.
- these are modest numbers.



> _Megaport will launch Megaport Virtual Edge (MVE) in 2H FY21. As announced on 17 August 2020, MVE will provide a platform to virtualise network functionality – for example, SD-WAN – to enable businesses to connect to services through Megaport from more locations around the globe – including branch offices, corporate campuses, and point-of-sale locations. Cisco is the first technology partner to announce MVE integration with more integration partners planned in the coming quarters_.



- running to stand still?






( still HOLD/ FC. last sale at $15.12)


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## Dona Ferentes (10 February 2021)

*1HFY21 Financial Highlights*
● The Company’s revenue for the half-year period ended 31 December 2020 was $36.0M, an increase of $10.1M or 39% from the same period ended 31 December 2019.
● Monthly Recurring Revenue (MRR) for the month of December 2020 was $6.3M, an increase of $1.7M or 37% from December 2019.
● The business generated a profit after direct network costs of $18.2M for the half-year period ended 31 December 2020, an increase of $5.1M or 38% from the same period ended 31 December 2019 ($13.2M). 
● Net loss for the half-year period ended 31 December 2020 was $38.4M.
● At 31 December 2020, the Company’s cash position was $144.2M


> _As of the second quarter of Fiscal Year 2021, all three of our operating regions are EBITDA positive. This puts us on track to achieve our goal of Group EBITDA break even on a run rate basis within Fiscal Year 2021. _


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## Dona Ferentes (29 March 2021)

Ignoring the Covid dive, would it be fair to say the 18 month trend of higher highs has reversed as the rotation from _*growth / tech*_ into *value *has been well and truly established.






(Still HOLD, but as a free carry)


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## bk1 (29 March 2021)

Thats true, as long we remember that this is a rotational play that started at the turn of the year. Does not mean we should throw the MP1 and NXT type stocks out the window, at least not in my opinion.


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## finicky (29 March 2021)

Volume isn't picking up which I guess is a plus but pretty ominous looking chart. Shouldn't have broken strong support around $12. 'Retested' $12. Makes me think of a head and shoulders and the conventional measured target for that would be around March Covid low. Anyway, doubt that anyone chart based would be buying it.


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## Dona Ferentes (22 April 2021)

retesting $12 . again. but this time through +4%

Nice warm and fuzzy letter to shareholders (performed as we should during Covid)
Update: _mid single digits _


> _In 3Q FY21, Megaport saw continued growth in Monthly Recurring Revenue (MRR), up 8% QoQ to $6.8M in March 2021. Total revenue for the quarter was $19.6M, up 5% compared to 2Q FY21. In March 2021, Megaport achieved 2,117 customers, up 4% QoQ, 7,037 Ports, up 5% and total services of 29,056, up 4% QoQ, and 422 Megaport Cloud Routers, up 10% QoQ_.




Outlook : great team, etc. *Fiscal Year 2021 has highlighted the strong operating leverage in our business model and we remain on track to achieving EBITDA breakeven, on a run rate basis, by June 2021*.


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## Dona Ferentes (29 April 2021)

the last 6 days have been green, and 20% lift with very little retracement during the run

_



_


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## Dona Ferentes (19 May 2021)

Megaport’s valuation does look frothy. The market cap is more than $2 billion, yet over H1 FY 2021 it more than doubled its net loss to $38.4 million on revenue of just $36 million. This is attracted the shorters; a significant 8.1 per cent of Megaport’s shares, worth about $166 million, are still short sold. 

_Bevan Slattery took to corporate soapbox LinkedIn earlier this month to taunt a trader betting on share price falls for Slattery’s latest sharemarket venture, Megaport. Slattery reckons the trader short sold 11 million shares only to watch the price rise. He also stated that over a single day recently, he fielded and rejected four calls from investment bankers and brokers asking if he might consider selling some shares, presumably, to help his short-selling enemies cover their positions._


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## Dona Ferentes (27 May 2021)

Dona Ferentes said:


> _Bevan Slattery took to corporate soapbox LinkedIn earlier this month to taunt a trader betting on share price falls for Slattery’s latest sharemarket venture, Megaport. Slattery reckons the trader short sold 11 million shares only to watch the price rise. He also stated that over a single day recently, he fielded and rejected four calls from investment bankers and brokers asking if he might consider selling some shares, presumably, to help his short-selling enemies cover their positions._



and he might have won this round.... from $13 some seven days ago, there has been a rise each day since, to cross through $15  a share today.


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## Dona Ferentes (18 June 2021)

MP1 closed at $17.60 which is an ATH. Only 5 down days in last 5 weeks.


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## Dona Ferentes (21 June 2021)

still pushing higher; has hit $18.27  ... up 5% today  (actually just 3.5% to a new high ; but the general market is down nearly 2%)

there have not been any Change of Significant Holdings since March, when MUFG lodged


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## Dona Ferentes (2 July 2021)

Dona Ferentes said:


> still pushing higher; has hit $18.27



and down a buck, in the last 2 days


Dona Ferentes said:


> there have not been any Change of Significant Holdings since March, when MUFG lodged




...there was an AFR item, about an early investor selling out, which is probably enough to knock the price around for a while


> _A $34 million parcel of shares in Megaport is  up for grabs through Citi's equities desk, with books set to close at 7:30pm on Thursday night. Bids for the 1.95 million block of  shares are being accepted between $17.55 and $18.09 per share, underwritten at the floor price._



_The seller is a subsidiary of NYSE listed data centre services business Digital Reality, Digital MP LLC_, which 


> _first declared a substantial shareholding in December 2017,  when Megaport shares were trading at about $2.50 each. Its large selldown last year came at a price of $13.35 per share, generating $100  million_.


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## finicky (2 July 2021)

It has seemed to me that a lot of stocks that were performing strongly in fy21 have been taking a knock. So it could be the inverse of eofy selling of weak stocks to rack up the cgt loss. Selling now forestalls the tax payment for well over a year. I have been hanging out for the new financial year myself for the liberty of selling down a couple of high performers (CHN, CDA) to build cash but it looks like others got in ahead of me.


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## Dona Ferentes (2 November 2021)

last four weeks for MP1 have seen solid buying, usually driven by bots. From around $16 at start of Oct, today it has reached an all-time high of $19.30

(and a nine and a half bagger for me)


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## Dona Ferentes (10 November 2021)

MP1 listed late 2015  at $2 a share, and Megaport has closed above $20 for the last two sessions ... even made it to $20.88 before the close of $20.38

I am going to claim it as a *Ten Bagger*, and a free carry at that; since getting interested, and buying in:
3,200 at 3.27 on 09 Feb 2016
1,800 at 2.50 on 08 Mar 2016
4,264 at 1.70 in SPP on 22 Aug '16 plus a top-up to bring it to 5k

For once, the _*folly of averaging down *_has paid off, as the next buys, both SPPs, were at 3.75 and 4.00 in 2018 and 2019, then the last SPP in Apr 2020 at 9.50. A feature has been that all four SPPs have been heavily scaled back. Sold a few in Aug '19 at 7.90 and again before last SPP at 10.97. Last sale was Aug last year at 15.12. All up, I've put in $38K in 6 buys and taken off $49.5K in three sales.

_- still don't entirely know how the company does what it does, _


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## Dona Ferentes (17 November 2021)

Dona Ferentes said:


> MP1 cruising through $11



but couldn't make it to $22.01. Hit the even dollar number 7 times today, but not cent more. Nevertheless the retreat was only a coupl'a cents. Closed 3% up for the day at $21.88


bk1 said:


> Thats true, as long we remember that this is a rotational play that started at the turn of the year. Does not mean we should throw the MP1 and NXT type stocks out the window, at least not in my opinion.



wise words, from late March  .... Yes yes and yes. basically you called the base, @bk1 . the rotation rerotated/ derotated/ twisted off, and since then it's been upward and onward

(_NXT is basically a REIT, to me_)


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## bk1 (17 November 2021)

I sense some consolidation, M&A activity coming soon to the sector.
Not necessarily MP1....


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## Dona Ferentes (3 December 2021)

Firetrail’s Eleanor Swanson believes *Megaport *is currently one of the best stories on the sharemarket, and has the potential to join the ranks of Australian-founded technology companies such as Atlassian and Afterpay.

Unveiling the Bevan Slattery-backed company as her top pick at the_* 2021 Sohn Hearts & Minds Conference,*_ Swanson says Megaport is solving the connection issues that have plagued businesses around the world, and by doing so, has brought the telco industry into the 21st century.


> “_Between the years 2000 and 2013, global internet traffic jumped 600-fold. The staggering increase in data traffic caused the customer experience on telco networks to plummet from average to abysmal,_” Swanson says.





> “_The Megaport network is fast, flexible, and a fraction of the cost of traditional telco networks. The Megaport network is the best network, as connections go live in minutes, not months, it’s a pay-as-you-go model, and you can scale up or down as you need.”_




The loyalty of Megaport’s customer base adds to the company’s appeal, with Firetrail expecting customer spend to grow at 30 per cent a year.

Megaport’s ability to innovate has enabled it to double the size of its addressable market from $7 billion to $14 billion over the past 12 months. The company operates in more than 700 locations, while its closest competitor is limited to 200.

Megaport has also created what Swanson describes as a “sales force army”, having expanded its sales reps from just 40 at the start of this year to 40,000.


> _“[Megaport] is now on the precipice of greatness, and has the potential to grow into one of the largest telecommunication companies globally_,” Swanson says.




While the stock is currently around $20, Swanson says it can double to more than $40 a share at a market capitalisation of more than $6 billion by the end of 2022.


----------



## Dona Ferentes (19 January 2022)

Megaport reports _strong growth across all operating metrics over previous quarter, with 123 new customers added and an increase of 8% in total revenue growth in the quarter. During the quarter, the Company launched the PartnerVantage portal supporting indirect partners to resell Megaport services, and as at 31 December 2021, 22 additional indirect channel partnership arrangements have been signed.

Long-term deal commitments formed a majority of net new additions in the quarter with 64% of net new Ports being acquired with committed terms of between 12 and 36 months. This represents a growing trend of customers using Megaport to connect long-term IT solutions and taking advantage of the ability to rapidly connect those services._

    ● At the end of December 2021, the Company's cash position was $105M


----------



## Dona Ferentes (9 February 2022)

Megaport reports strong growth across all operating metrics over previous half, with 170 new customers added and an increase of 42% in revenue over the comparable period in FY21. During the half, the Company launched the PartnerVantage portal supporting indirect partners to resell Megaport services.

   Performance; 1HFY22 Financial Highlights

Company revenue for the half year period ended 31 December 2021 was $51.2M, an increase of $15.2M or 42% from the same period ended 31 December 2020.    
Monthly Recurring Revenue (MRR) for the month of December 2021 was $9.2M, an increase of $2.9M or 46% from the month of December 2020.    
The business generated a profit after direct costs of $30.9M for the half year period 1 ended 31 December 2021, an increase of $12.7M or 69% from the same period ended 31 December 2020 ($18.2M).    
Net loss for the half year period ended 31 December 2021 was $20.2M.    
At 31 December 2021, the Company cash position was $104.6M.   
_are we there yet? Shares have dropped 50% since November; trading just above $13._


----------



## Dona Ferentes (18 March 2022)

_and I wonder if this will remove the negativity_?

MP1 announced today the sell down of 3,000,000 shares in the Company held by Megaport Chairman, Mr Bevan Slattery. The sale of 3,000,000 shares (equivalent to 1.90% of the Company’s issued capital), which was underwritten by UBS Securities Australia Limited, was undertaken at a price of $13.05 per share and the shares distributed to institutional investors. Following the sell down, Mr Slattery will continue to hold 8,070,940 shares in Megaport (equivalent to 5.11% of the Company’s issued capital).


> Mr Slattery said_, “I am excited for Megaport's continued growth and am committed to supporting the Company. I have no intention of selling shares within the next 6 months and am committed to ensuring the Company's success as it continues to scale up and scale out.” _




 Mr Slattery intends to use the proceeds from the sale to facilitate ongoing investment opportunities.

- _probably in the next ventures, FiberSense and/or  SuperSoniQ ... post #24
https://www.aussiestockforums.com/threads/slc-superloop-limited.29844/page-2#post-1091498 _


----------



## finicky (21 April 2022)

Currently down 16.5% @ $10.65 for this continously unprofitable tech company
I've noticed a couple of pro commentators trying to get retailers into MP1 recently and Commsec analysts have 8 strong buys and 4 holds against it. Goldman Sucks has a target of 19.90.
The Qtrly report is obscure to me but I get the impression that revenue isn't growing all that fast.
I saw that Netflix bombed overnight, gapping down to US$212 and closing a bit higher. Close was down 35%.

Chart could easily go lower medium term to my eye?
MP1 All Data Daily


----------



## Dona Ferentes (21 April 2022)

finicky said:


> The Qtrly report is obscure to me but I get the impression that revenue isn't growing all that fast.



Three percent is growing!! But at what cost, it always seems to be on the never never?


> “_The Megaport team is energized and focused on delivering a solid fourth quarter performance and setting our business up for great momentum heading into Fiscal year 2023._”


----------



## dyna (21 April 2022)

finicky said:


> I've noticed a couple of pro commentators



Macquarie's fundies ,too, are real keen on it.
It's all too hard for me, but I'll keep watching.


----------



## finicky (21 April 2022)

@dyna the pro commentators were suggesting it before today's walloping so we don't need to bother about them. As were the 8 'strong buy' analysts that Commsec taps (also 4 holds) and Goldman's Buy rec with a 19.90 target.

Not held


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## Dona Ferentes (21 April 2022)

finicky said:


> @dyna the pro commentators were suggesting it before today's walloping so we don't need to bother about them. As were the 8 'strong buy' analysts that Commsec taps (also 4 holds) and Goldman's Buy rec with a 19.90 target



and what about the bold (foolish?) opinion piece that was 'out there' late last year (Post #41 - 03 Dec)


> _Megaport is now on the precipice of greatness, and has the potential to grow into one of the largest telecommunication companies globally_,” Swanson says.
> .....While the stock is currently around $20, Swanson says it can double to more than* $40 a share .... by the end of 2022**.*



- $40. Haha.  better get a wriggle on, then !

I generally take the _spin-meisters_' opining that when they talk of a price, that is where they'll be out of the holding, completely, by the time a share reaches that level.

_(I do hold, as a free carry, MP1)_


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## finicky (21 April 2022)

James Gerrish's postcard summary today.
*Megaport (ASX:MP1) $10.01*

MP1 -21.55%: a very disappointing third-quarter update from the network connections business today which is struggling for growth. Monthly Recurring Revenue (MRR) was up just 3% on the previous quarter to $9.5m. This was hampered though by FX headwinds, but the annualised rate of $114m still leaves them on a very expensive ~15x sales multiple. Shares closed on the day’s low, sending them back to a 2 year low.

---------------- '' ---------------

Megaport was the* 'Livewire' #1 stock pick for 2022* by two fundies: Firetrail's Eleanor Swanson, already quoted by Dona Ferentes, and Michael Steele, Yarra Capital Management.

A *week ago*, On *April 14* they gave their updates, Swanson said,

"The main driver of Megaport's underperformance, in our view, has been interest rate rises and the impact a higher weighted average cost of capital has on the valuation of long duration growth companies." She said.



> "Despite the headwind rising interest rates pose to the technology sector, we continue to see material upside in Megaport."




In fact, Megaport generated 75% gross profit margins and 50% EBITDA margins in its recent 1H22 result, she said.
"The ANZ business is more mature than Megaport’s businesses in Europe and North America. The underlying profitability of Megaport has increased our conviction in the stock’s potential to outperform over the medium term as the business continues to scale," she said.



> "Megaport is a high-quality technology company with recurring revenue, low customer churn and a significant lead over competitors. We continue to see upside in Megaport over the next 12mths and maintain a high level of conviction in our Megaport BUY thesis.""




Steele maintained it is "a highly attractive investment opportunity". He said,

"The stock’s recent underperformance is consistent with the general market rotation away from growth companies – given the increase in long-dated interest rate expectations – and higher-than-expected costs as reported at the half-year result in February," he said.



> "This increase in costs at the result does not change our positive long-term view given it reflected investment in new products and additional distribution capability. The phasing of this full-year cost investment was weighted to the first half result, meaning lower cost growth is expected going forward."




With this in mind, Megaport's half-year result provided the Yarra team with confidence that the business is making progress in its efforts to scale, Steele said, with revenue up 42% year on year and gross profits up 69% over the same time period."









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----------



## Miner (22 April 2022)

Dona Ferentes said:


> _and I wonder if this will remove the negativity_?
> 
> MP1 announced today the sell down of 3,000,000 shares in the Company held by Megaport Chairman, Mr Bevan Slattery. The sale of 3,000,000 shares (equivalent to 1.90% of the Company’s issued capital), which was underwritten by UBS Securities Australia Limited, was undertaken at a price of $13.05 per share and the shares distributed to institutional investors. Following the sell down, Mr Slattery will continue to hold 8,070,940 shares in Megaport (equivalent to 5.11% of the Company’s issued capital).
> 
> ...



Reading the old postings after seeing rather a miserable fall of MP1 today. Did Bevan Slattery know something that is reflected after one money?
Searching on the Web, the search found James Mickelboro wrote this one back on January 22. James writes on the FOOL website also
Motley published this one












						Here's why the Megaport share price is tumbling 18% today
					

The Megaport Ltd (ASX: MP1) share price is deeply in the red after the company released its quarterly update before the open. Take a look.




					www.fool.com.au
				








						Why the Megaport (ASX:MP1) share price is crashing 12% today - Monex Securities
					

Megaport’s shares are falling on Wednesday… The post Why the Megaport (ASX:MP1) share price is crashing 12% today appeared first on The Motley Fool Australia. – Key points Softening growth during the second quarter weighing on its shares Megaport shares also caught up in tech selloff Management...




					www.monexsecurities.com.au
				








_" At the time of writing, the leading elastic interconnection services provider’s shares are down 12% to $16.10._

_Why is the Megaport share price falling?_​_Investors have been selling down the Megaport share price today amid broad weakness in the tech sector and the release of an underwhelming second quarter update. According to the release, Megaport reported a quarter on quarter increase of just $0.6 million or 7% in its monthly recurring revenue (MRR) to $9.2 million. This led to an 8% increase in second quarter revenue to $26.6 million.

Driving this was a 5% increase in customer numbers to 2,455, a 5% lift in total ports to 8,523, and a modest 2% rise in average revenue per port to $1.074. This was supported by the launch of the PartnerVantage portal, which allows indirect partners to resell Megaport services.

While no details were provided on Megaport’s earnings during the period, it did reveal that its cash balance stood at $105 million at 31 December. This is down from $114 million since the end of September.

Judging by the Megaport share price performance today, its growth during the quarter doesn’t appear to have been enough for the market. Particularly given the sky high multiples its shares trade on_."


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## Miner (22 April 2022)

finicky said:


> James Gerrish's postcard summary today.
> *Megaport (ASX:MP1) $10.01*
> 
> MP1 -21.55%: a very disappointing third-quarter update from the network connections business today which is struggling for growth. Monthly Recurring Revenue (MRR) was up just 3% on the previous quarter to $9.5m. This was hampered though by FX headwinds, but the annualised rate of $114m still leaves them on a very expensive ~15x sales multiple. Shares closed on the day’s low, sending them back to a 2 year low.
> ...



Very well research indeed. These experts are good for nothing still many of us including me, tend to listen to them.
I have not seen yesterday what the dial guages said but today after closing of market - technical sell is a strong one but analyst says strong buy. How long the piece of string? At what price is a buy for analyst - not today's price


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## Miner (22 April 2022)

Another blow on MP1. From closing price of Wednesday until Friday 11 AM AEST the price has gone south by about 40 %.
lots of blood on a software product for sure 
Look at the  fundies foolish recommendation even on 21 April and predicted prices. It is because they always get paid and play with others money. Look below recs from fundies and our FNA Mr Rudy - still hopeful to rise from the ashes.
:
This is today's recommendation from another mob on buying MP1 at $10.01 and reasoning :


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## Dona Ferentes (24 April 2022)

finicky said:


> MP1 -21.55%: a very disappointing third-quarter update from the network connections business which is struggling for growth ..... the annualised rate of $114m still leaves them on a very expensive *~15x* sales multiple.



Friday wasn't much chop either.  But with the SP below $10, the sales multiple has dropped .. to around *10x*. !



finicky said:


> Megaport's half-year result provided the Yarra team with confidence that the business is making progress in its efforts to scale, with revenue up 42% year on year and gross profits up 69% over the same time period."



Ah yes, the analysts do like it (or else have a large chunk of _post-growth_ stock they still need to drop; hence the boostering.)

In a note to clients, UBS analysts stated:
"_We remain positive on the medium to long-term opportunity for MP1. That said, it is hard to disagree that some of the accelerators to growth are taking longer than anticipated to come through, which in our view pushes out the earnings potential (rather than reducing it). " _

Likewise, a note from Citi indicates the equity team remains bullish on the Megaport share price in the longer term. Though, the disappointing quarterly update triggered a cut in their price target to $16.60


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## finicky (26 June 2022)

Strange day on Friday for a number of out of favour sector stocks. MP1 up 16%! and need a 3 year weekly chart to find a comparable positive weekly volume. The daily candle is bullish looking with the body inside the previous day and the weekly candle roughly conforms to a hammer. The low of the day came close to meeting a 'measured move' target (top of $20 down to period of consolidation equals period of consolidation down the low). Not a bad candidate for a reversal but for how long? I'm not betting on it anyway.

Techy edge:
NEA ^ 18%
XRO ^ 7%
PME ^ 8%
ARB ^ 7%
ALU ^ 7%
NAN ^ 12%
REA ^ 8%
UB1 ^ 9%
TNY ^ 9%

Retail discretionary:
MYR ^ 8%
ADH ^ 10%
CCX ^ 9%
KGN ^ 11%

MP1 *daily



*


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## Dona Ferentes (29 June 2022)

_Smoke and fire._

Megaport is shoring up its takeover defences, recognising that a bombed out share price could leave it vulnerable to an opportunistic bid.

_Street Talk_ understands Megaport has taken pitches from a handful of investment banks in recent weeks, keen to get their intelligence on the company and its market, and buyer appetite in the sector..





.
_There have been too many gyrations in SP for it to be otherwise._


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## bk1 (29 June 2022)

Ideally @finicky , that big red candle on 21 April should be stopping volume but it wasn't and the bleeding has continued.
Needs to base for a while and show strength during tech sell offs, in my opinion.


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## finicky (29 June 2022)

@bk1 sometimes I wonder what I was taking when I see an old comment:


finicky said:


> The daily candle is bullish looking with the body inside the previous



The daily candle was bullish, in part because the body was entirely *outside* the previous. Maybe that's what I was trying to say, or maybe I was transposing a notion about the weekly candle, who cares lol.

Anyway I'm not sure we can count on a base forming, as past history shows v shaped reversals. I'm not at all assertive that this will be one, just a candidate, and its not over till it's over - as the daily rally has not yet been fully undone.

Not sure I understand @Dona Ferentes posted table - I am guessing that the estimated future metrics are the new ones *after* the % revisions given.

All data weekly


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## Dona Ferentes (29 June 2022)

finicky said:


> ..not sure I understand @Dona Ferentes posted table - I am guessing that the estimated future metrics are the new ones *after* the % revisions given.



I think so, but, as it is from Citi, I'm sure they are using some arcane sleight of hand to make a story..


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## Dona Ferentes (30 June 2022)

MP1 seems to be in thrall of large holders, the insto's, trading in and out. They all seem to be having a go. The last 3 months have been very active, with big volumes going through;

Mitsubishi UFJ Financial Group, (MUFJ)
State Street
UBS
Citi
Now if the tax year has ended and they have rotated /juggled losses, etc; maybe things will settle down. And maybe a corporate action emerges. 

Now $5.60, low for the year has been at $4.70


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## Dona Ferentes (1 July 2022)

_And we wish to thank motley fool for this succinct and value adding information._

Citi’s price target – which is where it thinks the share price will be in 12 months – is $12.30, which would be a rise of around 120%.

The UBS price target is $19.70. It likes the longer-term outlook, including the tailwind of more businesses going online with their computing infrastructure.

Morgans has a price target of $10.65, which implies a rise of around 90%, though the actual rating was hold.

Ord Minnett thinks the business is close to fair value, with a price target of $5.50. It thinks the business needs to focus on revenue growth and costs.


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## bk1 (1 July 2022)

Some of those targets are truly heroic, i wonder how much stock they have collectively on their books.

The 200 day MA is at $14....


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## InsvestoBoy (1 July 2022)

Dona Ferentes said:


> MP1 seems to be in thrall of large holders, the insto's, trading in and out. They all seem to be having a go. The last 3 months have been very active, with big volumes going through;
> 
> Mitsubishi UFJ Financial Group, (MUFJ)
> State Street
> ...




Unlikely any of these instos are betting on MP1 tho right? It's just custody for hedge fund accounts they are Prime Brokers for.


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## finicky (6 July 2022)

Excellent day for holders today. XRO was well up too, NAN more so, PME not so much.
MP1 does seem to be 'constructing' well for a potential significant low. I like the way it shot up +20% over just two days with high volume in June. Then it pulled back with a brace of small candles on low volume and followed with higher volume break to a fresh peak today. Best fit downtrend line up around $8 but will get lower with time. Too expensive for me to risk in this climate.

Not Held

Daily


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## Dona Ferentes (11 July 2022)

Dona Ferentes said:


> _Smoke and fire._
> 
> Megaport is shoring up its takeover defences, recognising that a bombed out share price could leave it vulnerable to an opportunistic move...




Bank of America has been appointed house adviser to telco infrastructure group Megaport.

Sources close to the talks said Megaport’s board had mandated Bank of America to shore up its defences, recognising that a 66 per cent year-to-date share price fall may leave it vulnerable to an opportunistic bid.

Bank of America’s role is expected to include

keeping an eye on Megaport’s share register (those pesky hedge funds/  short sellers)
working on defence tactics should a suitor emerge
considering other near and medium term strategies to create value for shareholders.
_Private equity firms, infrastructure funds and global trade players continue to scour Australia’s technology sector for potential acquisitions, trying to make the most of falling listed market valuations._


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## Dona Ferentes (20 July 2022)

Quarterly out:

Total revenue for the quarter was $30.6M, up 10% compared to 3Q FY22. Annualised recurring revenue at 30 June 2022 was $128M.

Megaport delivered *EBITDA profit for 4Q FY22 as a whole, a first* for the Company. During the quarter two new markets, Canada and Japan, became individually profitable ahead of schedule, contributing to the Group EBITDA performance.

During the quarter ended 30 June 2022, Megaport sold 1,447 new services, up 6% QoQ for total services of 27,383. Net new ports increased by 533, an increase of 6% to 9,545. Strong port sales combined with a 7% increase in average revenue per port to $1,120 per month supported record MRR growth in the quarter.

Cash of $82 million at EoQ.

_... After touching $7, sold off 6% yesterday, to $6.47. Tussle of the hedge funds?_


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## Dona Ferentes (20 July 2022)

Dona Ferentes said:


> Quarterly out:
> _... After touching $7, sold off 6% yesterday, to $6.47. Tussle of the hedge funds?_



and opened 30% up, as the shorts had to put on their big-boy pants

as high as $8.96,; now around a 20% lift and $7.80


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## Dona Ferentes (20 July 2022)

EBITDA of $1 million in Q4 for the first time, thanks to two new markets, Canada and Japan, becoming profitable and ahead of schedule.

Of course, to get there, need to take out 

_equity–settled employee related costs, _
_foreign exchange gains and losses on disposal of property, plant and equipment, and _
_other non-recurring expenses_. 
_Charlie Munger_?


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## rnr (20 July 2022)

Just thought I would take the opportunity to throw up a daily chart of MP1 for anyone interested.

The green zigzag line maybe an A-B-C correction which bottomed out in late June.
(Perhaps @Porper may confirm my assumption?)

I also wouldn't be surprised if @peter2 has been keeping an eye on MP1

Cheers, Rob


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## peter2 (20 July 2022)

*MP1* - never heard of it. 
That B wave is too flat for a classic ABC correction. It is a strong down trend though from $22 to $5. Wow. Price has gone down so much that I'd have to be "bonkers" to even select it for a monthly comp.

 I was impressed to read that MP1 is actually making a profit. That's rare in the tech sector. 

The daily chart does show the 123 Low pattern but then so has a hundred others in the ASX recently.


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## Porper (21 July 2022)

rnr said:


> View attachment 144328
> 
> 
> Just thought I would take the opportunity to throw up a daily chart of MP1 for anyone interested.
> ...



The positives Rob: 

It's declined around 78.6% of the prior leg, used by many Elliott analysts. I prefer 61.8% but that's just me. It's also hit a zone of support and reversed. Plus, there is a volume bubble around the lows implying the big boys may be taking an interest.. The confluence is good.  How many times do you see major highs and lows coincide with volume bubbles...a lot.

Negatives:

The bounce in Feb isn't sufficient to call it a symmetrical 3-wave move. It looks too impulsive. it may need to come back a bit after today's weak close as well. All in all, looks good for a decent rally over the coming weeks at least i.m.o. 

A lot of stocks have hit Fibonacci targets and reversed hard recently...or bounced from zones of support. Maybe MP1 is in that basket.


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## finicky (5 August 2022)

From James Gerrish's 'Market Matters'
"MM feels that the recent outperformance by tech stocks is reaching maturity"
They have trimmed their XRO holding.
Suggest that MP1 rally is now flagging. Can't say I'd dare to say that yet from my neanderthal view of the chart - however, I guess it did get up to overbought on the daily and there is a big unfilled gap below.
Hints at the chance that the ASX200 might test 2022 lows or maybe specific tech sector weakness and would like MP1, WTC, TNE on significant pullbacks.

Not Held


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## Dona Ferentes (9 August 2022)

Megaport annual report out. I found the description of what it actually does to be much clearer, and activities plus risks are summarised well.

Company is growing at a fair clip but still losing money, though at a lower rate.

The _DCF_ and other pricers will make their judgements, as will the short-sellers and traders; looking to open a bit higher.


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## Dona Ferentes (9 August 2022)

Dona Ferentes said:


> The _DCF_ and other pricers will make their judgements, as will the short-sellers and traders; looking to open a bit higher.



though they really can't make up their minds .... 1 minute change


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## dyna (2 September 2022)

S.P at $6.95
Spiked a bit after the annual report. Quite bit , in fact .Almost $9 , but now resuming its slow decline.
At $ 5 , I'll have to get my thinking cap on and have another read of that annual report.....it's bad, but not all that bad. They're siting on $ 80 million in the bank, too.
All very tempting, but I'll watch for the brave ones here, to jump first.


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## dyna (10 September 2022)

Argo's annual report meeting of last month ,mentions the fund manager taking a stake in Megaport , during the year.
Could be something else, to keep in mind.
Must be other smart minds at work on MG1, one would have to assume.


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## Miner (19 October 2022)

Hello Team
Could some one please throw some lights  on the sliding turn of MP1 today. It is still going down.
The Global Update was the trigger but what was the fatal flaw ?




Could this director back in August knew something  to sell a massive chunk in August 22 ??


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## Miner (19 October 2022)

Looking back not long ago MP1 was at a very low price and there was a big jump !. Could today's slump is returning to reality ?
BTW, when I finished writing this post, the price has slumped to 6.8. Who were the clever fellows to spend $8.5 in the morning trading ?


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## Dona Ferentes (19 October 2022)

closed at low for the day .... and it looks like selling intensified as trading continued


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## finicky (19 October 2022)

Unnatural looking move. Before today I saw the chart as reasonably positive. Makes me speculate that it might test the June bottom at under $5? Are some caught by a negative surprise in the Qtrly? My snapshot look saw a pretty ordinary looking increase in revenue of only 5% QoQ, for what is obviously still valued as a growth stock. Cash held is down, sheeted to investment and fx headwind - strong USD. 

Not Held

1 Year Daily


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## Dona Ferentes (19 October 2022)

I'd reckon some insto holder looked at the numbers (_pretty ordinary looking increase in revenue of only 5% QoQ_), plugged them into their modelling, added the new revised cost of capital / DCF  assumptions, plus currency overlay, and then said "_sell 'em_"  ... look for change of holding notice in the next few days?


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## finicky (19 October 2022)

James Gerrish goes up another notch by candidly stating they took a misstep in buying MP1 recently for their growth p/f. Not something you hear from R Montgomery. Says the item to focus on is number of 'ports' which grew only 1% QoQ which isn't enough for the high valuation.

Quote:

"*Megaport $6.61*
MP1 -22.14%: Opened around par this morning and traded higher initially following their quarterly trading update that showed only small growth in the number of ports added during the period while Capex was also higher than expected. Revenue of $23 million was +5% q/q with monthly recurring revenue up +3% q/q, however, the number that really counts is total ports which came in at 9,606, a growth rate of only +1% q/q which is not good enough. The market latched onto this, with some big volume going through after lunch and the stock slid ~20% as a result. A disappointing outcome for a stock we have recently bought in our growth portfolio ~ paying $7.82 at the end of last month.'


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## rcw1 (19 October 2022)

1FLTFLIGHT CENTRE TRAVEL ORDINARY15.09%0.142BETBETMAKERS TECH GROUP ORDINARY14.32%0.393SQ2BLOCK CDI 1:1 NYSE11.63%0.444MP1MEGAPORT LIMITED ORDINARY11.04%1.21









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The top 100 shorted stocks on the ASX, by short position. The full list of shorted positions is also available for download.




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## rcw1 (20 October 2022)

Good morning
Megaport shares were placed into a trading pause as the company corrected an error in its first quarter results on Wednesday.

The company says there was a mistake in the Australian dollar translation of the cash flow on its investor presentation. 

The amended figures in the Australian dollar show that capital expenditure changes from a loss of $16m to $14.4m, while cash flow used in investing activity changes from minus $15.8m to $14.2m.

Net cash flow was now negative $12.3m compared to $13.9m on Wednesday, while the effect of FX movement changes went from $0.8m to minus $0.8m.

Megaport says no changes to the reported cash balances or to USD cash flow were made.

SP down 11.95% cent as at time of post.

Kind regards 
Rcw1


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## Dona Ferentes (20 October 2022)

And quickly becoming another "_gang that can't shoot straight_".


----------

