Once the market moves on from the latest 'oil crisis' MTU should re rate strongly given the number of 'buys' being signaled to the market post upgrade.
"While M2 didn't refer to the ACCC's decision, it is not hard to read the tea leaves in its prediction of a 5.7 per cent revenue upswing and a huge huge 19.8 per cent rise in net profit.
The raised guidance was "due to forecast material improvements in the company's wholesale purchasing arrangements for certain services for the six months to 30 June 2011".
Amazingly, the Gadaffi-struck market still marked M2 shares down 2.35 per cent, which reinforced my buy call on the stock.
None of the other smaller telcos have upgraded their profits, probably because of M2's unique position of renegotiating rates based on higher volumes and its small and medium-business focus, which includes a lot of fixed phone lines.
