Ann: iiNet in strong position for NBN roll-out , page-8

re: Ann: iiNet in strong position for NBN rol... I've finished being a Telstra customer and I can't see why anyone would aspire to become a staff member of Telstra. There is no way in hell I could advocate being a Telstra shareholder. PE is cheap but earnings are crumbling because Telstra have proven themselves to be useless on many levels (staff talent, product quality, customer service).

I would say that given the competition, any multiple up to PE14 (FY) is fine for IIN. IIN has very experienced management, a good business track record and have even demonstrated product innovation. They have a reputation for better quality product and satisfactory customer service and their financials are in good shape.


Just like the Charlie Munger cliche goes: it's better to pay a fair price for a good company than a cheap price for a bad company.

Also, as per Fisher's approach, it can be acceptable to pay a suitable premium on PE when a company ticks the boxes for being a quality growth stock (proven and talented sales team, product suitable for sales growth, good reputation with customers, staff, suppliers, demonstrated product innovation to increase sales...etc). While no company is perfect, IIN appears to fit the profile quite well.

My guess is that they will do OK whether NBN goes ahead or not.