Pros:
Market Leader
Best Mobile Network
Best Network Engineering Capability
Most Diversified Market
Good Margins and solid Cash Flow
Best capability for "bundling"
They have the scale and leverage to think and deliver big
Share price hammered on seemingly limited negative news leaving open possibility of positive rerating when the fog clears
Getting rid of their maintenance headaches in the Access Network to NBN may allow them to be more nimble
Cons:
Margins progressively eroding, exacerbated by NBN (self declared $3B future black hole in earnings)
Replacement revenue seems to be lower margin
Not a great recent track record in tech investments. Ooyala anyone?
Perceived absence of strong direction/leadership (mixed messages on dividends and earnings holes)
They still carry legacy baggage in the form of people, process, technology which can impact customer service and innovation
They're carrying a bit of debt in their saddlebags
Always seem to be subject to political and ACCC interference
All in my personal opinion.
My personal view is that if they show some traction on their plans there's potentially plenty of upside but at a $37B market cap in a competitive market they're not what I'd call cheap.
I'm holding a small amount but without a lot of conviction.
Good luck.
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