There has been a steady increase in shorts over the past 3 months.
My initial thoughts are:
· competition is strong in the business space
· a "doubt" they can reach the target of 1 million retail customers.
I think they can achieve the retail customer goal as customer service and the Optus debacle should carry them through. Although there is some interesting bundling going on now with CommBank, offering internet discounts with CC payments and mortgages. There are also bundles with utility companies available. Perhaps price will become more important consideration for customers? More and Tangerine also seem to be nimble, customer focused operators, that could nip at ABB’s customer base.
The business side is not so easy to quantify. To me, their image is of a retail brand that will need to be expanded on to win enterprise business. There is competition on all fronts, big and small, TLC, SLC, etc. I haven’t yet decided if the OTW acquisition adds real value or was just adding/buying customers.
I’m also wondering if the value of their fibre is not being fully appreciated.
Looking forward to the investor presentation tomorrow for some clarity on the above.
Held, potentially looking to add at some point.