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VOC vocus group limited

1.56%

$2.28

Looks like points 4, 5 and 6 are/have been done. It's a multiple...

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G650er

296 Posts.

14

06/03/18

22:12

Post #: 31573081
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Originally posted by G650er ↑

I'm buying Vocus because I believe they will:

1) Cut costs like their lives depend on it. They need to use the 3G Capital method of starting each expense item at zero and justifying every single cost item. Not compare on a pcp basis.

2) Pay mid to senior executives shares in lieu of cash. This will save cash, change the culture of the firm, and incentivise people the right way.

3) Pursue alternative debt options rather than equity. Maybe a convertible debt offering to institutions. Janchor will have to lead the way on this.

4) Vaughan Bowen needs to step down AFTER he has struck one or two deals. Vaughan is accountable for GH. He is also accountable for not being on top of this mess. He has gone on record saying a lot of things to fund managers. But he is a smooth, slick and effective deal maker. He needs to (if he hasn't already) pause his yacht habit for 12-18 months and get to work.

5) Stop this bulls$it reporting. Their EBITDA figure is not consistent with peers because they carve out overheads. Alone in the half-yearly report, they use the word "adjusted" 37 times. This diminishes credibility and credibility is something they can't afford to lose right now.

6) Get rid of the management consultants. This alone will save millions.

7) They will have to assess alternative sale strategies. There will need to be break fees, so that if the buyer walks, Vocus still gets some $$.

8) They will need to be more creative in their sale approach. Kogan wants in on NBN, and they have a high share price. Perhaps offloading their Australian NBN business for scrip needs to be assessed. Vocus' Australian consumer division is the worst performing division of the group. The bottom line is to think outside of the box. (Please don't tell me they have this competitive advantage nonsense because they have fibre. If Vocus truly had an edge, this would be quantifiable somewhere...usually profits)

If they do not do 1 through 8, it is likely they will need to raise capital. If they execute on some of the above, they will get by on my calculations.

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Looks like points 4, 5 and 6 are/have been done.

It's a multiple arbitrage game now. Sell NZ for a higher multiple, shed the lower multiple assets, re-rate the enterprise/wholesale business.

I was going to sell closer to $3 per share but now I'm prepared to hold out for $5.

VOC Price at posting: $2.40 Sentiment: Buy Disclosure: Held
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Looks like points 4, 5 and 6 are/have been done. It's a multiple...

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