Audinate: loud and clear
Recommendation
The leading internet browser has changed hands many times, from Netscape Navigator to Internet Explorer and now Google Chrome. But the internet protocol, which defines how browsers share information over the web, remains the same – albeit improved – since the 1970s. The lesson here is that mediums come and go but protocols stay.
This outlines our thinking on Audinate Group, which owns Dante, the leading digital protocol for installed audiovisual systems. Our thesis is a simple one: one digital protocol will rule the roost and Audinate is the most likely ruler.
But even promising businesses are not worth an infinite price, and with Audinate surging 25% since we upgraded it, we've passed the point where we're comfortable buying. HOLD
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Note: The InvestSMART Australian Small Companies Fund owns shares in Audinate Group. You can find out about investing directly in Intelligent Investor portfolios by clicking here.
Disclosure: The author holds Audinate Group via units in the InvestSMART Australian Small Companies Fund.