This sums up much of my thinking - I hold a few and swing trade a few and even trade intraday sometimes ......

I think there is a lot of slack that management can cut out of the costs and would also anticipate sector consolidation ..... good value currently and have been holding their own in a falling market. Lot of US interest.

ains


Edited by Dominic White
(Filed: 08/02/2003)


Texting makes MmO2 sexy but it's also risky

More and more Britons are discovering the joys of textual intercourse. In the month of December, we fired off more than 50m mobile messages a day, and next Friday (that's Valentine's Day, folks, in case you'd forgotten) we'll send considerably more than that.



It emerged this week that the chief beneficiary of this craze is MmO2 . BT's former mobile phone division revealed that it gets a higher proportion of revenues from texting than any of the other three operators.

Revenue from messaging grew at its fastest rate ever in the last quarter, up 19pc, and data services as a proportion of MmO2 's revenue rose to 17.7pc from 15.6pc.

More good news was the rise in MmO2 's average revenues per customer. ARPUs, as nerdy analysts like to dub them, grew by 5pc to 243 in the UK and by 9pc in Germany to 212.

MmO2 now has 19.1m subscribers and in Britain it may be the smallest player, with 11.9m users, but it is growing faster than its rivals - testament to the success of its rebranding from BT Cellnet.

Only 114,000 of its 503,000 new UK subscribers were higher-spending contract customers, but MmO2 claims its pre-pay customers have started spending more than before.

Customer growth in Germany, which continues to be dominated by T-Mobile and Vodafone, is less impressive and the MmO2 share price ascribes little or no value to this part of the business.

That seems unfair, given the fact that the group has attracted higher-spending customers and has made a decent fist of turning the operation around. An eventual sale or merger is almost as inevitable as a disposal of the Dutch unit, which is losing customers.

MmO2 's larger rival Vodafone is trading on a free cashflow yield of 6pc, while at 49p this week, MmO2 's equivalent valuation remains negative. It might not have Vodafone's scale or profitability but there is room for upside. A risky buy.

L2 strong? +ve end on Wall Street - O2 perfoming well. Let's hope 60+ reached today.

Buy orders Sell orders
Num(%) Num Vol(%) Vol VWAP Vol Vol(%) Num Num(%)
1% (42.86%) 6 (64.07%) 1,767,500 58.75 - 59.41 991,149 (35.93%) 8 (57.14%)
5% (40.00%) 8 (63.79%) 2,245,704 58.62 - 59.55 1,274,749 (36.21%) 12 (60.00%)
10% (38.46%) 10 (68.62%) 2,920,634 58.33 - 59.61 1,335,749 (31.38%) 16 (61.54%)
15% (46.51%) 20 (58.87%) 3,427,834 57.89 - 61.06 2,394,614 (41.13%) 23 (53.49%)
50% (48.89%) 22 (64.55%) 4,361,007 56.84 - 61.06 2,394,614 (35.45%) 23 (51.11%)
100% (54.90%) 28 (65.72%) 4,591,027 56.43 - 61.06 2,394,614 (34.28%) 23 (45.10%)
all (53.85%) 28 (65.68%) 4,591,027 56.43 - 61.21 2,398,614 (34.32%) 24 (46.15%)

L2 weak? +ve start but now weakness after strength of Euro hits mkts. Still holding. I hope I have not made my usual mistake of not off loading this am. US Fut flat now.

Still looking okay - sector is up 1.41% - oom up 2.61% - market down 0.32% - intraday graph looks like they are trying for another go at 60p






Buy orders Sell orders
Num(%) Num Vol(%) Vol VWAP Vol Vol(%) Num Num(%)
1% (35.90%) 14 (59.39%) 3,990,882 58.77 - 59.52 2,728,619 (40.61%) 25 (64.10%)
5% (30.77%) 16 (46.02%) 4,469,086 58.71 - 59.75 5,242,219 (53.98%) 36 (69.23%)
10% (34.85%) 23 (49.86%) 5,315,616 58.49 - 59.78 5,345,819 (50.14%) 43 (65.15%)
15% (41.38%) 36 (46.93%) 5,795,816 58.23 - 60.34 6,554,684 (53.07%) 51 (58.62%)
50% (43.33%) 39 (50.71%) 6,743,140 57.49 - 60.34 6,554,684 (49.29%) 51 (56.67%)
100% (46.88%) 45 (51.55%) 6,973,160 57.20 - 60.34 6,554,684 (48.45%) 51 (53.13%)
all (46.39%) 45 (51.53%) 6,973,160 57.20 - 60.40 6,558,684 (48.47%) 52 (53.61%)

0-1% (35.90%) 14 (59.39%) 3,990,882 58.77 - 59.52 2,728,619 (40.61%) 25 (64.10%)
1-5% (15.38%) 2 (15.98%) 478,204 58.71 - 59.75 2,513,600 (84.02%) 11 (84.62%)
5-10% (50.00%) 7 (89.10%) 846,530 58.49 - 59.78 103,600 (10.90%) 7 (50.00%)
10-15% (61.90%) 13 (28.43%) 480,200 58.23 - 60.34 1,208,865 (71.57%) 8 (38.10%)
15-50% (100.00%) 3 (100.00%) 947,324 57.49 - 60.34 0 (0.00%) 0 (0.00%)
50-100% (100.00%) 6 (100.00%) 230,020 57.20 - 60.34 0 (0.00%) 0 (0.00%)
100%- (0.00%) 0 (0.00%) 0 57.20 - 60.40 4,000 (100.00%) 1 (100.00%)

Charles Stanley reiterates its buy rating for Vodafone

Huge volumes again and touching the 60p resistence ..... need news or market swing

ains



FT - Mobile phone company MMO2 continued to rally on the back of Wednesday's strong results, adding a further 3.9 per cent at 59.75p, a 12-month high. The unexpected reduction in MMO2's net debt to 549m was particularly warmly welcomed.

"There is a confidence about how the company is trading, cost-cutting and positive earnings momentum came together in the results," said Christian Maher at Investec Securities. "People expected to see net cash outflow, but they actually made progress in cutting net debt."

The 3G bubble is finally pricked M F in the S Telegraph
(Filed: 25/05/2003)


mm02 has written off a staggering 6bn of its investment in third generation mobile technology. Will Vodafone follow suit? Mary Fagan reports

L2 OOM & VOD? Once again lost out not offloading. Did you offload & at what price?