WHAT I LIKE – Megaport (MP1)
Megaport is a provider of elasticity connectivity and network services, operating under a Network as a Service (NaaS) business model and it’s a stock that Michael Wayne from Medallion Financial has on his list of likes. “In recent weeks, we have revisited a business we first raised with clients in one of our monthly reports three years ago,” said Michael.
“The company prides for offering the world’s first elastic SDN-based interconnection fabric, which accelerates connection between customers and data centres,” he added.
Megaport allows businesses (like Amazon Web Services, Google Cloud Platform, IBM Cloud, Oracle Cloud, Salesforce and SAP) to swiftly access multiple cloud databases through a single platform. “This is extremely important in an environment where many multinational corporations have several business operations across several countries and use several cloud databases depending on the location and business. Megaport effectively streamlines the communication by allowing data stored in different cloud servers and countries to be accessed universally on a single platform.
Megaport’s share price was on the move early last week, after the network-as-a-service provider announced the upcoming release of Megaport Virtual Edge. “This product innovation will allow customers to tap into Megaport’s platform to deploy and extend network functions in real time, without deploying hardware.
“The global cloud database market estimated to grow to $24.8 billion USD by 2025 which places MP1 in an enviable position to capitalise, should management continue to deliver,” Michael concluded.
Source: Google
WHAT I DON’T LIKE – Coca-Cola Amatil (CCL)
CCL is the authorised bottler and distributor of The Coca-Cola Company’s beverages in Australia and 5 other Asia Pacific regions. Coca-Cola Amatil also prepares and distributes beverages outside of the Coca-Cola family, taking its portfolio of non-alcoholic beverage brands to a total of 30. “The business has been experiencing soft volume growth, declining margins and falling revenues.
“We feel the structural trend of consumers shifting away from unhealthy fizzy drinks will remain a headwind for some time to come, with increases across water, dairy and energy drinks only partially offsetting declines in carbonated and sugary drinks.
“Competitor pricing pressure and intense competition across the grocery industry have the potential to further compress margins,” said Michael.
Source: Google
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