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MAQ $14.46

MAQ_Long term investment opportunity

  1. Mikeyboi

    1,286 posts.
    I have been a shareholder of MAQ for a while, yesterday i bought more shares at 8.6c. My total holdings now average a value of 11c. This stock appears to have been ravaged to a point that defies logic in my opinion. The company had been well managed and was profitable up to financial year ending 1999/2000. In 2000/2001 it recorded the first loss in the company's history as far as i can tell. But if one considers the capital expenditure was spent on developing argumently Australias leading telecommunications data centre as well as an expansion into Singapore then the loss can be justifiably explained.

    The Macquarie Intellicentre is the only Australian data centre to receive the internationally recognised British Standards Insititute security accreditation BS7799, as well as SunTone accreditation. This means the Macquarie Intellicentre environment is unparalleled in Australia, providing the highest standards of security and quality.

    When looking for a share to buy (particularly in this climate) i think that the book value is of utmost importance. MAQ is trading at 1/5th its book value! The company has no debt which cannot be said for any other telco that i have looked at. MAQ also has great contracts with both The Commonwealth Government and The New South Wales government. Current clients include the ACCC, Department of Prime Minister and Cabinet and The New South Wales Police Force. Overseas clients which have resulted from the move into Singapore include BASF, Federal Express, Fairfax and Monsanto. As of 31/12/2001 the company retained a cash in bank figure of $30.1 million. Although there was a $10 million write down in the value of the data centre earlier this year that was not a cash loss.

    My point is simple. The entire telco sector has been ravaged, no-one has escaped unscathed. However surely fundamentals like these should ensure that MAQ survive long enough for a change in sentiment. In other words they do not appear likely to go broke overnight!!! Previous announcements have indicated that the board expect to be profitable in the current financial year 2002/2003. I placed similar posts in regard to LOK when that stock was down around 5 cents and many people laughed.

    MAQ is not a stock for a daytrader - the chart is awful. However for investors with patience looking for the potential of large capital gains i would suggest you do your own research and seek the opinion of your stockbroker. I would be interested in replies if anyone has further comment.

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