SOT - SP Telemedia

Anybody following these? SP Telemedia owns Soul and TGP. I'm no expert in telecoms but as a bit of a geek, I know that Soul acquired a bad rep a while back for poor service, but TGP have impressed as a very competitive broadband/mobile provider with aggressive growth strategy. Rising profits, recent director buying and dividend announcement seem to point to SOP being undervalued, but there doesn't seem to be a lot of interest in this one. Any good reasons not to invest in SOT?

Yep. I'd like the price to drop again until I've bought some more. And I'd particularly like the price to drop for the next few weeks so the DRP price is lower

I'm a nano-scale investor with very little capital and not much of an income. I like to accumulate boring small caps that don't attract much interest and whose management concentrates on growing the business, which means I'm accepting an inherent risk of low liquidity. This company suits me, but I'm not exactly your typical trader.

Ghoti

Have acquired Pipe Networks.

Is this a good move?

Anyone with some info/ Thinking of buying into this small cap

I hold SOT (probably soon to change its name and presumably code), so I'm pretty happy at the moment. I'm also in the DRP, so I'll be increasing my holdings slightly in a week or so.

However for a long-term hold I think there's plenty of time to decide whether to buy into TPG at current prices or higher. The deal is conditional on finance, and not due for completion till April; we won't know for a while how much they actually borrow or on what terms. We also won't know for even longer how customers, current and potential, respond to the combined company. And of course there's the uncertainties of Telstra and the NBN. OTOH, the company has done very well over the last 18 months or so, notwithstanding a stomach-churning fall in share price.

I'd been thinking about PWK for a few months, but I wouldn't have paid this much for it. However I couldn't have made direct use of its technology. At this stage I intend to hold SOT and see what happens. If I get nervous I might withdraw from the DRP.

That's not much help is it? But I really do think there's no need to hurry.

Cheers,

Ghoti

I have been watching these for months but ,silly me,never bought in.In about five months they have gone from under 30 cents to today about $1.50.I have my internet with them and a virtual phone card (ten cents for unlimited std calls anywhere in Aust)
They are very ambitious and keen to increase market share.
Whether the 400 million debt raising will inhibit them for a while-probably.
With the PWK purchase they will be able to enhance and add to their service in the three major cities.
As with all equities SOT are a matter of faith....but they seem to have made the right moves so far.

SP Telemedia (SOT) is now known as TPG Telecom (TPM).

Discussion of this company now continues in the TPM thread, which can be found here: https://www.aussiestockforums.com/forums/showthread.php?t=18213

This thread has now been closed.