$NetLink NBN Tr (CJLU.SG)$ can ask, all this fees cutting, e...
$NetLink NBN Tr(CJLU.SG$ can ask, all this fees cutting, eat into the profits revenue of netlink right? this should be a bad news? why is the stock price rising?
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Bossman : With IMDA price review complete, analysts cheer 'long-award closure' for 'very attractive' Netlink NBN Trust
Bossman : Check out this article. It explains it well
SenselessOP : pardon me.. I still don't quite understand, reduced of price, why is it good for netlink?
Bossman : It’s inside the article “given a higher number of active fibre connections.” Lower price but there’s more active fiber connections and more to come.
SenselessOP Bossman: Doesn't this equate to, that if price wasn't reduced, "more fibres connection will give rise to higher profits? instead of ($x-y)1000, it could have been just ($x)1000?
What i don't understand also is that with inflation and rising cost to serve (salary, materials like fibre glass and etc..) how come IMDA still reduce the price and expect netlink to survive or to earn enough money for profit to warrant a rise in stock price?
Bossman : I’m not sure why IMDA decided to reduce. But overall with more customers and the growing pool this price reduction seems like the expected scenario from the reports I’ve read. The more customers you have the cheaper it would be
Aivern : people expected bigger cuts.