Dona Ferentes
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- Joined
- 11 January 2016
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This is a fund manager's view. (forgotten who)
: What is your most underrated stock at the moment?
HT: "I'd probably say Uniti Group Ltd (ASX: UWL), as it is now called. It is a fibre network provider. Over the last 18 months it transitioned from providing fibre network services to residential, greenfield residential developments to become much more a fibre infrastructure company. It has recently just bought OptiComm Ltd, and also bought the Telstra Corporation Ltd (ASX: TLS) Velocity business.
"I think COVID has highlighted the importance of digital technology and also fibre connectivity. What we found interesting and one of the observations we have made is that these assets are increasingly being appreciated as social infrastructure assets. The utility type assets, much like toll roads and airports, but I do not think they have been historically thought of in that way.
"COVID has helped really shift that focus and show that these businesses have strong annuity earnings and, in some ways, aren't as volatile or… impacted by things like economic activity such as passenger movements and car traffic and so forth.
"The one thing that struck us is that during the bid they made for OptiComm, Aware Super, which is the old First State Super, made a rival bid. In our mind, this reinforces the point that these assets are starting to be viewed in a different light, [as] the social infrastructure type assets.
"Our view is that Unity is now the number 2 player in what is essentially a duopoly market with NBN. And they are the only player that has got the ability to sell in the wholesale and retail channels, through having recently won structural separation approval from the ACCC. It is a business that… has probably emerged stronger from COVID to become really what we think will be a social or a fibre infrastructure business going forward. "
(hard to price that, though)
there has been some enthusiasm on recent news, of late. ....then consolidation. Will it hold above $1.80?
... 6 month, daily chart
DNH
: What is your most underrated stock at the moment?
HT: "I'd probably say Uniti Group Ltd (ASX: UWL), as it is now called. It is a fibre network provider. Over the last 18 months it transitioned from providing fibre network services to residential, greenfield residential developments to become much more a fibre infrastructure company. It has recently just bought OptiComm Ltd, and also bought the Telstra Corporation Ltd (ASX: TLS) Velocity business.
"I think COVID has highlighted the importance of digital technology and also fibre connectivity. What we found interesting and one of the observations we have made is that these assets are increasingly being appreciated as social infrastructure assets. The utility type assets, much like toll roads and airports, but I do not think they have been historically thought of in that way.
"COVID has helped really shift that focus and show that these businesses have strong annuity earnings and, in some ways, aren't as volatile or… impacted by things like economic activity such as passenger movements and car traffic and so forth.
"The one thing that struck us is that during the bid they made for OptiComm, Aware Super, which is the old First State Super, made a rival bid. In our mind, this reinforces the point that these assets are starting to be viewed in a different light, [as] the social infrastructure type assets.
"Our view is that Unity is now the number 2 player in what is essentially a duopoly market with NBN. And they are the only player that has got the ability to sell in the wholesale and retail channels, through having recently won structural separation approval from the ACCC. It is a business that… has probably emerged stronger from COVID to become really what we think will be a social or a fibre infrastructure business going forward. "
(hard to price that, though)
there has been some enthusiasm on recent news, of late. ....then consolidation. Will it hold above $1.80?
... 6 month, daily chart
DNH