RE:RE:RE:RE:Houston - We Have Liftoff! LTE Rockets Up
We will let numbers do the talking as they speak the loudest. I will look to see what the company does for this fiscal year. This is what makes a market, differences of opinion and coming to our own valuations and projections. To give an idea Dycom is a contractor for Telcos in the US. Yes, it is US-listed, and yes has multi-billon dollar market cap, but trailing PE of 30. So, as a construction company it is commanding that kind of PE - it is a signal to the market of the expected growth in this industry, so it is not all margin based. I understand Lite Access' margins are better than Dycom's. And there are 2 divisions to Lite Access; product division that can get up to 80% margins and the construction division that gets up to 30%. It could even be higher than this depending on the project details, bid etc. Will have to see a couple more quarters to get a better handle on this.
There are not a lot of ways to play the fiber buildout theme and Lite is a leader with proven technology and products. For investors wanting to get exposure to this sector, Lite is basically a pure play on the buildout and last mile connection.