CEO's of - TPG Telecom ( $3Bn? MC), Fidelity Fund ( U$50Bn fund) and six usa instos - must have done extensive dd before they decide to inject another $13m into cvt
Why?
I believe cvt is on the verge of turn-around, from the high cash-burn stage (start-up) to growth stage.
For every $1m they invest into UK govt sale & marketing targets, i can see a return of $2m.
$12m can return $24m.
How?
FCO alone,
250,000 prospects (net $168-68/fco commission)
=$100 x 250000 = $25m a year, yearly income, Qed.
This excludes Prime/Defence $200m tender, Cisco/Kaas, Chungwah/Taiwan , TMobile etc.
Cvt, 504m shares ,$650,000 revenue, Cash $20m ( incl TGP/Fidelity next injections) , MC $100m, EV $8om.
When compared to other asx-listed 'start-up stage'techos, with simialr or smaller markets (Bn), for examples:
Smn, Nea, Xpe, Rap, Isx
Zero or revenue under $65000 MC $150m to $250m.
Why?
Because markets (investors) are forward looking (In cvt terms, 30c to 50c)
You can see how undervalued Cvt is.
Once cvt show some more revenues (in UK alone) in coming weeks/months, the market will wake up, and rerate.
I am buying in advance, so are many LT holders here.
-
Now where was i again?
In summary:
TPG and Fidelity chose to invest in Cvt, not 1Page ( nor Smn, Nea, Isx etc)
Why? Cvt sales pipeline in UK is more than 10 pages long
=)