RE:down yet againAgree, its brutal. Lets keep in mind that we are a small cap stock subject to the trading whims of a few. The cream will rise to the top and I am NOT succumbing to emotion and fear despite my overweight position. I slept like a baby and continue to take just one melatonin as per usual!
The average price paid by telecom/network owners for passing a premise in the UK is 500 BP. 500 BP x 1.68 = C840. Call it C$800. Assume we get tier one and we do 10,000 homes = $8.4m w/ margins that will make it all worth it. On top of that there is backbone which you can think about as connecting up the cities. We can use a combination of microtrenching and directional drilling depending on the conditions. And connecting up the actual homes
Tom F follows them better than anyone (Twitter). I have followed them closely since before the IPO. I learned a lot at the AGM and it was great to shake Mike and Dylan's hands! While I have not spoken to a soul about this, I will say that I will be very disappointed if the next AGM doesn't include a shareholder presentation and is held in Vancouver.
Look, there is NO doubt that we will get tier one with Virgin and we will be a contractor with contractor margins. We will do much more than 10,000 homes, Dylan didn't pack his bags to move to the UK for $10m. For you that don't know Dylan is from the UK, 20 something years British Telecom engineer at the forefront of fibre and laying it using various methods. Including microtrenching. The two Mikes are original founders of the co., extremely experienced but they were ahead of its time. Well they weren't really but GF, TELUS and others are not as innovative in some things.
Back then at the outset of laying fibre, it was a disaster using microtrenching because they used a wet saw and the water caused tons of damage. That's why to this day they felt it was a good thing to call their process narrow trenching to get in the door. I've been saying since day 1 when LTE took over DSG right after the IPO that it was a fantastic partnership. DYODD and take a deep breath; keep your eye on the ball, not today's stock price is my suggestion.
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