I thinking we have to accept that NTC will not be valued for future earnings until they regularly sign up new tier 1 telcos. As discussed already, we won't know when contracts are signed until well after the fact. So in general we'll only be valued on current earnings, not forward earnings. That will impact valuation for a couple of years, imo. We are still undervalued at these prices.
BTW, I was also there today. I asked the question on the sales cycle and if we expect to get any new contracts this year (which Justine said they are expecting decisions this FY).
I was cautiously optimistic after the AGM. They need to be an early supplier in 5G, so no choice but to make this investment.
Tbh, I think the best way to get a decent return from here on the company is if we had a trade buyer. The current Board will struggle to attract investors for a while given their previous poor comms. Dave Stewart might make a difference now that he is back on the board. Value investing might come back into fashion as well to draw some new investors.
NTC Price at posting:
72.5¢ Sentiment: Hold Disclosure: Held
