M2 Telecommunications have soared since I first mentioned them in this post in July Getting Down From My Pulpit. It’s a shame I didn’t get down from my pulpit, analyse and buy M2 sooner than September M2 Telecommunications Analysis and Valuation.

I shan’t complain. I own an attractive well managed company with recurring revenues which still appears undervalued. Pipe Network’s buyout has buoyed the sector and propelled M2 to new highs. Those taking a closer look at the telecommunications sector should see the value in M2. Speaking of Pipe, I was mentioned in Communications Day on Monday.

One independent analyst, Fusion Investing and Analysis’ Dean Morel, commented TWO MONTHS ago on September 16, “Pipe Networks looks like a fantastic story, but the price is a tad rich for me… I wouldn’t have been surprised to find Pipe’s MD Bevan Slattery selling shares at these prices.” Comms Day 16 Nov 09.

As the following chart highlights the price charge since Sept has been from ratio expansion while the leap in August was earnings based. M2 announced 2009 earnings on 14 August.

Disclosure: Long MTU.AX

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