16/11/2023 09:29

Megaport Ltd (MP1) $10.59

Throughout 2023, we have resolutely stuck to our bullish outlook for US tech, which has panned out perfectly with the NYSE FANG+ Index now poised to make fresh all-time highs. Similarly, the local Tech Sector has enjoyed a stellar time, rallying +21.7% year-to-date, although volatility has increased over the last few months with the market's tolerance to average company news waning by the day.

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26/10/2023 16:50

Megaport (MP1) $9.63

MP1 -16.33%: any sign of weakness in the Tech sector has been treated harshly recently, and connectivity company Megaport was no exception today despite maintaining FY24 guidance. The company hit record quarterly EBITDA of $15m which compares to the $1m EBITDA in 1Q23 and up 27% on the prior quarter.

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22/08/2023 17:02

Megaport (MP1) $12.15

MP1 +16.94%: Most of their FY23 result had been pre-reported to the market, so no new news in that respect, however, the guidance for FY24 was a surprise both in terms of the quantum and the elevated detail which has been a major criticism in the past.

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01/08/2023 09:51

The “unloved” stocks are catching a bid, who could be next?

We have already missed a couple of opportunities where stocks which have been struggling over the last 2 years sprang back to life with a vengeance, one we even discussed days before it rocketed higher. However, we don’t find this disheartening more a confirmation of the trend we are expecting to unfold through the 2H.

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13/07/2023 09:23

Megaport Ltd (MP1) $9.48

MP1 has already surged over +40% following the upgrade this week, the horse has clearly bolted from a risk-reward perspective but we still wouldn’t be fading its ascent towards $10.

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11/07/2023 16:45

Megaport (MP1) $8.99

MP1 +33.78%: network connectivity business Megaport saw shares rocket to a 9-month high today on a small upgrade to FY23 earnings and a strong runway into FY24. The business went through an aggressive cost-cutting program in FY23 which looks to be bearing fruit earlier than thought.

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28/04/2023 17:12

Megaport (MP1) $5.63

MP1 +41.46%: shares in the network connection service company ripped higher today on the back of a strong 3Q update, tearing up some profits for the short sellers which accounted for ~11% of shares on issue. Revenue for the quarter was in line, however, price hikes put through in March lifted their exit Monthly Recurring Revenue (MRR) run rate to $14.1m, up 14% from December thanks to lower-than-expected churn following the increase. There have been a number of management changes over recent months and now the new CEO looks to be getting to work, aiming to cut the headcount by 50, renegotiate cloud fees and reduce their costs by a total of $30m a year. Guidance was strong with FY24 numbers 25-30% ahead of consensus expectations.

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10/03/2023 09:18

Megaport Ltd (MP1) $4.94

MP1 is one of the shorts which keeps on giving to the traders having fallen another -22% already in 2023. This week we’ve seen the CEO Vincent English abruptly resign while the short position remains elevated at 9.4% although it is down from ~12% where it has been over recent months. Also, Chairman and Founder Bevan Slattery might continually lament the “shorters” but he’s been an active seller himself having sold ~$200mn worth of stock since 2018 including the last $6.15mn clip in October. • We see no reason to catch this particular falling knife with alarm bells still ringing i.e. we want to hear some concrete reasons why the CEO departed.

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02/03/2023 09:22

Megaport Ltd (MP1) $5.61

This software-based elastic connectivity provider has already fallen -10.3% this year and far more since its $22 high in late 2021. MP1 has been sold off following a disappointing result, with the main issue coming from slowing growth with the number of ports being added simply not enough to justify its $880mn market capitalisation. A large driver behind the large 9.2% short interest comes from logical concerns around cash burn and the subsequent potential need to raise equity.

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31/01/2023 17:13

Megaport (MP1) $5.78

MP1 -24.74%: the cloud connectivity business struggled today after announcing weak 2Q connection numbers with the market concerned about the company’s balance sheet. Monthly Recurring Revenue (MRR) climbed 6% to $12.4m, and revenue was 10% higher than the 1st quarter while the company is profitable at the EBITDA line. However, they...

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