# AMM - Amcom Telecommunications



## etingsoon (31 August 2009)

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


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## graeme155 (10 April 2010)

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


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## So_Cynical (21 January 2011)

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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## skc (21 January 2011)

So_Cynical said:


> 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
> 
> ...




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?


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## So_Cynical (22 January 2011)

skc said:


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




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.


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## So_Cynical (19 February 2011)

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/


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## moreld (23 February 2011)

*FY11 1H Results out*

While the growth in most metrics was good, the actual eps was down 1c YoY and margins continue to compress.
http://www.fusioninvesting.com/2011/02/amcom-telecommunications-stellar-first-half/

Amcom are well positioned and appear capable of good organic growth.


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## So_Cynical (23 February 2011)

*Re: FY11 1H Results out*



moreld said:


> While the growth in most metrics was good, the actual eps was down 1c YoY and margins continue to compress.
> http://www.fusioninvesting.com/2011/02/amcom-telecommunications-stellar-first-half/
> 
> Amcom are well positioned and appear capable of good organic growth.




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


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## So_Cynical (15 March 2011)

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.


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## So_Cynical (30 March 2011)

So_Cynical said:


> (21st-January-2011) Amcom was added to my portfolio today @ 0.32  my first Telco/ISP/Data service provider.






So_Cynical said:


> (15th-March-2011) 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.




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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## So_Cynical (2 April 2011)

So_Cynical said:


> 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?*
> ~




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 : 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.

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



So_Cynical said:


> 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.




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


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## maximusnz (2 April 2011)

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


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## So_Cynical (2 April 2011)

maximusnz said:


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




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.


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## BigLeon (18 April 2011)

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.


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## So_Cynical (18 April 2011)

BigLeon said:


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




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


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## mrthong (10 August 2011)

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


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## So_Cynical (10 August 2011)

mrthong said:


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




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.


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## skc (10 August 2011)

So_Cynical said:


> 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.




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.


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## So_Cynical (10 August 2011)

skc said:


> 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.




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.


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## mrthong (11 August 2011)

So_Cynical said:


> 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.




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.


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## skc (11 August 2011)

mrthong said:


> 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.




You are better off today than yesterday. The share price didn't drop accordingly. It dropped less than it should.

Yesterday AMM was 33.5c, and your 10,000 shares worthed $3,350.

The distribution is 440 IIN shares for each 10000 AMM shares. 440 IIN @ $2.2 each is worth $968, while 10,000 AMM today is worth $2600. So in total today you own $3568 worth of shares. An almost 7% gain.


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## So_Cynical (11 August 2011)

skc said:


> You are better off today than yesterday. The share price didn't drop accordingly. It dropped less than it should.




Today's low was 0.235 (even though only a few trades went thru at that price) and yesterdays close was 0.335 so at-least for a couple of minutes the SP did indeed drop accordingly.

31 million IIN shares worth about (depending on what price you use) $67.5 > 71 million 

AMM Market cap at 0.235 CPS = $168453424 and @ 0.335 CPS = $240135732 so a MC difference of $71.6 mill for the opening 2 or 3 minutes.

My order didn't get filled.


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## So_Cynical (17 August 2011)

Amcom results out today...all good, including a 1 CPS fully franked dividend paid on a pre-share consolidation basis, making it very easy to like this company.    considering that we get the iinet shares & dividend too.

Results presentation
http://clients.weblink.com.au/clients/amcom2/article.asp?asx=AMM&view=6553525

I've cut and pasted the best bits.
~


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## mrthong (18 August 2011)

looks very promising. any idea when we receive our iiNet shares? i bought AMM shares before aug 11. they also changed the final dividend payout from oct 3 to oct 4.


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## So_Cynical (18 August 2011)

mrthong said:


> looks very promising. any idea when we receive our iiNet shares? i bought AMM shares before aug 11. they also changed the final dividend payout from oct 3 to oct 4.




19 August...tomorrow according to the announcement below

http://clients.weblink.com.au/clients/amcom2/article.asp?asx=AMM&view=6547299



			
				linked ann said:
			
		

> Anticipated despatch of IIN holding statements to Shareholders 19 August 2011




With the consolidation happening late next week.


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## etingsoon (24 August 2011)

Hi there, 

Does anyone knew what going to happen with current holding? I mean the AMM share that I am holding which is around 8000 shares. At the end of the consolidation, how many AMM share I will be holding?

Cheers
Andrew


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## skc (24 August 2011)

etingsoon said:


> Hi there,
> 
> Does anyone knew what going to happen with current holding? I mean the AMM share that I am holding which is around 8000 shares. At the end of the consolidation, how many AMM share I will be holding?
> 
> ...




3-for-1 consolidation so 2666 or 2667. Not sure they round up or down.


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## mrthong (29 August 2011)

Amcom distributes new holding statements to Shareholders sept 5th. next monday we will be able to trade again.
what does it mean by "Last date for registration of transfers on a pre-Consolidation basis" ? do i have to register or something? i dont see any registering forms.


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## So_Cynical (29 August 2011)

mrthong said:


> Amcom distributes new holding statements to Shareholders sept 5th. next monday we will be able to trade again.
> what does it mean by "Last date for registration of transfers on a pre-Consolidation basis" ? do i have to register or something? i dont see any registering forms.




You don't have to do anything...i think it means that the 29th was the last trading day on a pre consolidation basis, so like it was T+3 or ex-div day.

And you can trade your Amcom shares under the temporary code AMMDA (deferred settlement) or at-least you could, don't know about tomorrow etc.


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## mrthong (6 October 2011)

hey, just received a letter. something to do with ATO confirming tax treatment of the distribution. i done the demerger calculator on the ato website, all it does is just indicate how much the AMM shares are worth after the demerging of AMM and IINET. i no longer have any AMM shares nor IINET shares. sold them weeks ago.


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## So_Cynical (7 October 2011)

mrthong said:


> hey, just received a letter. something to do with ATO confirming tax treatment of the distribution. i done the demerger calculator on the ato website, all it does is just indicate how much the AMM shares are worth after the demerging of AMM and IINET. i no longer have any AMM shares nor IINET shares. sold them weeks ago.




That letter was about the ATO special ruling..so you can work out your capital base for both stocks if you sold after the distribution...you will need this to calculate your capital gain/loss properly for next years tax return.

I held my Amcom shares and brought more IIN so that my IIN holding was big enough to be an open trade...happy to hold both stocks.

Interesting that in the recent carnage both SP's have held up very well.


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## pavilion103 (26 July 2012)

AMM - Analysis on charts


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## pavilion103 (27 July 2012)

AMM - good day today but closing off the high in the end so some supply. It will be interesting to see if this one pulls back a little to test the high volume area.


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## pavilion103 (31 July 2012)

Nice little run up over a couple of days. Looks to be out of puff for the short term. In and out quickly on this one. Will place on my watch list again.


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## skc (31 July 2012)

pavilion103 said:


> Nice little run up over a couple of days. Looks to be out of puff for the short term. In and out quickly on this one. Will place on my watch list again.




I think sometimes it's worth looking across the sector to see if the stock run is likely to continue.

AMM's peers include MTU, TPM, IIN, TLS, SGT... they are all pushing 52wk highs.

If the whole sector is looking strong, leave the stop a bit wider and see if the trade works out.

If some stocks in the sector start to reverse, then may be a tighter stop is warranted.


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## So_Cynical (8 October 2012)

The Amcom share price continued its upward trend today once again hitting new all time highs, as per an announcement of a few days ago NAB now holds over 7.6% and National Nominees hold over 13% of this little niche Telco...looking at the top 20 holders there is a lot of institutional interest in this little stock.

Personally i continue to hold and now enjoy a gross yield of just under 10.1% PA and have an unrealised profit of 110% with a current average holding price of 0.66 (post consolidation, IInet distribution and cost base adjustment)


4 year chart below.
~


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## So_Cynical (12 February 2013)

The good news just keeps coming with Amcom, so happy i found this little gem when i did.  Share price has more than doubled over the last 2 years.

First half investor presentation out today. http://investor.amcom.com.au/IRM/Co...nvestorpresentation1H13resultsanother20growth


 Cash 25m
 Debt 9m
 Cloud to be earnings positive from FY14
 Expanded partnership with Cisco (Nasdaq CSCO) 
~


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## clowboy (13 February 2013)

So_Cynical said:


> The good news just keeps coming with Amcom, so happy i found this little gem when i did.  Share price has more than doubled over the last 2 years.
> 
> First half investor presentation out today. http://investor.amcom.com.au/IRM/Co...nvestorpresentation1H13resultsanother20growth
> 
> ...




Seems to be losing some steam in my opinion, revenue climb by a similar percentage but profit didn't match the percentage and with a 20% growth in earnings but a more than 50% share price growth I think the Stock price might be reaching maturity for the time being, which may be evidenced by the lack of reaction from the market.


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## So_Cynical (13 February 2013)

clowboy said:


> Seems to be losing some steam in my opinion, revenue climb by a similar percentage but profit didn't match the percentage and with a 20% growth in earnings but a more than 50% share price growth* I think the Stock price might be reaching maturity for the time being, which may be evidenced by the lack of reaction from the market.*




Agree somewhat...i certainly wouldn't be buying at this level, my average price is 64 cents, certainly wouldn't be buying after today's 5.94% SP rise.


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## So_Cynical (27 October 2014)

Amcom has received a "proposal" from Vocus (VOC) ~ some sort of scrip only merger at this point.

http://www.asx.com.au/asxpdf/20141027/pdf/42t666zfnp0vqh.pdf

I had a look at Vocus a few months ago and thought at the time that they were very similar businesses, VOC east coast focused and Amcom the other half of the country...a tie up does make some sense.

.........

Pure dumb luck that i took a new small AMM position just last week when the SP once again touched 1.89 ~ the SP just kept bouncing of that level and i had the money so after watching for oh so long...still holding a largish position from 2011 @ 64 CPS.


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## pixel (28 October 2014)

So_Cynical said:


> Amcom has received a "proposal" from Vocus (VOC) ~ some sort of scrip only merger at this point.
> 
> http://www.asx.com.au/asxpdf/20141027/pdf/42t666zfnp0vqh.pdf
> 
> ...




It seems the Market considers the merger beneficial for both of them as well:


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## So_Cynical (6 November 2014)

TPG has been buying, adding over 4 million shares in the last week to become a substantial holder with 5.43% ~ and of course this put the AMM share price into over drive breaking through $2.50 today. 

http://www.asx.com.au/asxpdf/20141106/pdf/42tk1h48vfsg88.pdf


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## So_Cynical (10 November 2014)

Due diligence announcements out today...happy this is moving forward.

http://www.asx.com.au/asxpdf/20141110/pdf/42tlprfm5w240w.pdf


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## So_Cynical (18 December 2014)

Its a done deal, Amcom holders to get 0.4614 VOC shares per share...AMM up 13.5% on the news and VOC up 7%

Everyone's happy.

Amcom Acquisition Investor Presentation

http://www.asx.com.au/asxpdf/20141217/pdf/42vk0lx02423qv.pdf


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## So_Cynical (24 April 2015)

A Video Message from the Amcom Chairman.

http://investor.amcom.com.au/irm/ShowStaticCategory.aspx?CategoryID=310&masterpage=31

First time i have seen a chairman do a video message encouraging shareholders to vote.


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## So_Cynical (16 June 2015)

A 99.8% endorsement of the Vocus merger is an excellent result, **** you TPG - SP up 16%  lucky i took a little punt on this very result.

http://www.asx.com.au/asxpdf/20150615/pdf/42z686pdlrmdsc.pdf


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## System (10 July 2015)

On July 9th, 2015, Amcom Telecommunications Limited (AMM) was removed from the ASX's official list following the implementation of the scheme of arrangement by which Vocus Communications Limited acquired all of the Company's issued capital.


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## So_Cynical (6 August 2015)

So_Cynical said:


> A 99.8% endorsement of the Vocus merger is an excellent result, **** you TPG - SP up 16%  *lucky i took a little punt on this very result*.
> 
> http://www.asx.com.au/asxpdf/20150615/pdf/42z686pdlrmdsc.pdf




Out of this trade today for a lovely 18% profit, Amcom has been very good to me, hoping that Vocus will continue to make me happy...holding 1500 or so VOC going forward.

Vocus thread can be found here.

https://www.aussiestockforums.com/forums/showthread.php?t=21664


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