Intelligent Investor

Audinate: loud and clear

Is Audinate worth buying after its price surge?
By · 5 Apr 2018
By ·
5 Apr 2018 · 1 min read
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Recommendation

Audinate Group limited - AD8
Current price
$18.30 at 16:40 (19 April 2024)

Price at review
$3.35 at (05 April 2018)

Max Portfolio Weighting
3%

Business Risk
High

Share Price Risk
High
All Prices are in AUD ($)

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

Intelligent Investor is loading up the van and going on tour in April and May, with events on the NSW central and north coast, the QLD mid-north coast and in PerthAdelaideMelbourneSydney and Canberra. If you'd like to hear us talk about building a portfolio to weather any storm, book your spot here.

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.

IMPORTANT: Intelligent Investor is published by InvestSMART Financial Services Pty Limited AFSL 226435 (Licensee). Information is general financial product advice. You should consider your own personal objectives, financial situation and needs before making any investment decision and review the Product Disclosure Statement. InvestSMART Funds Management Limited (RE) is the responsible entity of various managed investment schemes and is a related party of the Licensee. The RE may own, buy or sell the shares suggested in this article simultaneous with, or following the release of this article. Any such transaction could affect the price of the share. All indications of performance returns are historical and cannot be relied upon as an indicator for future performance.
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