TPG and Vocus have both fallen close to 40% over the past few weeks as questions emerge about margin stability in a post NBN world. While the timing of this concern is odd – we raised it months ago when we slapped a Sell on Vocus – the content is legitimate.
With both TPG and Vocus now near or below our buy prices, we are looking at them in detail. This is not a fleeting opportunity created by irrationality; caution is needed. We’re removing price guides while we complete our research but we will reinstate them with the next review. We’re working on it now so expect it later this month. No action is needed for the moment.