CHORUS (CNU) Shares
Chorus Limited is a New Zealand-based provider of telecommunications infrastructure with a history dating back to 2008 when Telecom established it as a separate business.
In 2011, Chorus was formally separated from Telecom, and in the process acquired Telecom’s copper lines, cabinets, most telephone exchange buildings, DSLAMs and some fiber back-haul.
Today the company is New Zealand’s largest telecommunications infrastructure company. It maintains and builds a network predominantly made up of local telephone exchanges, cabinets, and copper and fiber cables.
OVERVIEW OF CHORUS
Chorus Limited has adopted an active wholesaler strategy in order to mitigate the risk of competing networks reducing its connections. To this end, the company implements its own in-market initiatives to raise consumer awareness of its copper and fiber network footprint.
The company is an active wholesaler, promoting its extensive fiber and VDSL broadband footprint through advertising, retailer campaigns and its own door knocking initiatives. The company’s network supports approximately 100 retailers, and optimizes its business in these competing areas while maximizing its broadband share in other areas experiencing premises growth, particularly Auckland. The company commercializes new potential revenue streams identified by its innovation programme, such as data centers and smart city connectivity.
As data demands continue to grow, the company’s ability to deliver consistent throughput at dedicated speeds is a significant competitive advantage. By the end of 2022, the company will have made 1Gbps connections with no data cap constraints available to more than 1.3 million potential customers. Statistics New Zealand says 71% of New Zealand households were on unlimited broadband plans in 2018, up from 62% in 2017. Average monthly bandwidth demand on the company’s network grew from 210GB per customer to 265GB through 2019.
The company has recorded that peak time traffic across its network grew from 1 500Gbps in June 2018 to 1 900Gbps in June 2019, which is equivalent to 380 000 simultaneous high-definition video streams. New technology developments and the uptake of more bandwidth hungry services support the company’s own and independent forecasts that suggest average data usage by 2024 is likely to exceed 1 000GB a month, significantly growing the company’s portfolio.
VISION & VALUES OF CHORUS
Chorus Limited’s values are pillared on the health, safety and wellbeing of its people. This includes its direct employees and its thousands of contractors. This health and safety focus extends to anyone who is in, or in the vicinity of, the company’s workplaces.
To this end, the company has established an open reporting culture and works with its contractors and suppliers to ensure their systems and procedures meet its health and safety expectations.
MARKET PERFORMANCE OF CHORUS
Chorus Limited trades on the Australian Securities Exchange (ASX), where investors can buy shares under the stock symbol –CNU.
Data from the company’s 2019 financial analysis shows earnings before interest, income tax, depreciation and amortization (EBITDA) of US Dollar 636 million for the year ending 30 June 2019, a decrease of US Dollar 17 million on the prior year. Net earnings decreased by US Dollar 32 million year on year.
Results for 2019 largely reflect the annualized revenue impact of declining copper connections, partly offset by increased fiber uptake and continued tight control of expenses. Capital expenditure of US Dollar 804 million was below the 2019 guidance range of US Dollar 820 million to US Dollar 860 million. The decrease from 2018 capital expenditure of US Dollar 810 million reflected significant reductions in copper capital expenditure, which more than offset increased spend on fiber connections.
The company announced dividends of 13.5 cents per share on 8 October 2019 and expects to pay a dividend of 24 cents per share in 2022, subject to no material adverse changes in circumstances or outlook.
The company’s decrease in earnings was largely subject to a change in market demand towards fiber, for which the company is well prepared to meet going forward. This is set to deliver a good share price and strong long-term dividends for investors who choose to purchase shares, reflecting a solid buy for those who choose to purchase shares today.
Buy CHORUS stocks / shares – A Step by Step Guide how to Buy / Purchase CHORUS Stocks or Shares online.
Before buying any stock or share one has to consider a few factors.
STEP 1: PROPER RESEARCH IS ESSENTIAL
Upon deciding you want to buy CHORUS Stocks / Shares, it is critical for the serious investor to do proper research into the said company. Its values should align with those of the investor’s current portfolio. An investor needs to familiarise himself with the basics and history of the company, as well as its leadership and performance in the market. Its company reports should also be scrutinized.
Consultation with a brokerage firm can also assist in determining whether investing in a specific company will complement the investor’s current portfolio. The investment “risk ladder”, which identifies asset classes based on their relative riskiness, is another useful tool when determining which company’s stock / share is the best to buy.
STEP 2: CALCULATE THE AMOUNT OF INVESTMENT IN CHORUS STOCKS / SHARES
It is important for an investor to monitor his total investment in stock in order to keep his portfolio aligned to his investment strategy. The overall value of his holdings will change with the fluctuation in stock prices, which can throw his portfolio off balance. To determine the amount to invest, multiply the number of shares of each stock by its current market price to determine the total investment in that specific stock. For example, if you own 100 shares of a US Dollar 5 stock, multiply 100 by US Dollar 5 to get US Dollar 500.
STEP 3: DECIDE ON THE STOCK / SHARE ORDER TYPE
Investors can choose from a market order, a limit order, a stop order (also referred to as a stop-loss order) or a buy/sell stop order. It is important to familiarise yourself with each type’s pros and cons before deciding which one will suit your current stock profile best. An investor should be guided in this choice by his investment objective.
STEP 4: OPEN A BROKERAGE ACCOUNT
A brokerage account – also known as taxable investment account – is similar to a retirement account, but more flexible. Where a retirement account has limitations on the amount of money that can be contributed annually, and restrictions on when funds can be withdrawn, a brokerage account is more flexible. The latter has no income or contribution limit and the investor can withdraw his money at any given time. This flexibility, together with its potential investment gains, makes a brokerage account more attractive to serious investors. Brokerage accounts are ideal for goals or savings that are further than five years away, but closer than retirement. It can also supplement an investor’s emergency savings.
STEP 5: COMMIT AND PURCHASE CHORUS STOCKS / SHARES
Lastly, commit to the stock. Pro Tip: Monitor the value of your stock to ensure you have a growing stock value and dividend pay-out. Regularly check the share price online to ensure your investment delivers a positive return on investment. You are now a proud owner of CHORUS stocks / shares.
5 Questions to ask yourself before purchasing any stocks or shares.
- Is it the best time to buy this stock / share?
- Should I buy CHORUS stocks / shares in the current economic climate?
- Can I afford to buy this stock / share?
- What is the forecast of the stock / share growth?
- What is the current price per earning ration on the stock / share?