MNF Group Limited Reaffirms Guidance. Share Price Jolts Up.

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rise up, increase, stocks market, business, finance

Right now, it seems like every company is pulling in their earnings guidance.

But not this one!

MNF Group Ltd [ASX:MNF] has reaffirmed guidance to the market. And that’s in a post COVID-19 world.

The share price rocketed up 20% as a result.

What does this mean, and is MyNetFone a buy at today’s prices?

We’ll take a look…

But first…

Who is MNF Group Ltd [ASX:MNF]?

The MNF Group provide voice, data and cloud-based services. It does this through a range of subsidiaries, which I’ll tell you about shortly.

The company services residential, business, government and wholesale customers.

The company has three segments. The first two are Australian based, servicing both retail and wholesale customers.

The second is international wholesale customers.

MNF Goup and its subsidiaries cover a range of the sector’s needs.

The MyNetFone portion provides voice and internet services. Symbio Networks offers IP voice services and software. Connexus and CallStream offer inbound business phone numbers…

Pennytel provides sim-only mobile phone services…

TheBuzz and iBoss are software as a service platform (SaaS). This gives businesses the ability to launch and scale their own telecommunications business.

While TNZI business provides companies global voice services for international service providers, regional telecom networks and ‘multi-national’ enterprises.

The MNF group also operates TollShield.

This company offers a ‘real-time toll fraud migration’ software service.

There are more subsidiaries that MNF group operates, like Telcoinabox, Supernet, OCA Softswitch and MNF Enterprise.

But it’s of little importance to break down these subsidiaries.

What is important, though, is the company’s latest announcement to the market.

You may recall, I said that MFN Group Limited re-affirmed their profit guidance.

Well, here’s what the company said…

MNF advises that the company is currently experiencing strong demand for core products across its three operating segments…’, which I told you about above.

It continued:

‘[T]he key product in demand is Australian based phone numbers, which are used for collaboration and conferencing applications.

A key-point the company said was that the ‘company reaffirms its stated FY2020 EBITDA guidance of $36 – 39 million.

It’s a sigh of relief in a world where guidance’s have been dropped left right and center.

So, you may be asking yourself…is MNF Group now a buy?

It’s not possible for me to answer that for you.

Though, maybe the chart can give us a clue.

MNF Group — we’ve been here before

Take a look below…

Source: Guru Focus

[Click to open in a new window]

What you’re looking at above is the weekly chart of MNF Group.

The first point to make is that, right now, MNF group is trading at levels not seen since 2015.

It also got caught out in the COVID-19 sell off.

Though, now that investors are aware that revenue may be about to increase…

It could cause investors to revalue the company.

We won’t know for certain just yet.

But it may be worth watching MNF group to see how this plays out. That is in a post COVID-19 world.

As always, this is not a recommendation to buy or sell MNF. It is an update only. I hope you found it useful.

Until next time,

Jonathan Evans Signature

Jonathan Evans,
Analyst, Profit Watch

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