Vocus Communications Limited (ASX: VOC) has picked up where it left off yesterday, rising a further 37c or 7.18% today to be trading at $5.52. That takes its total gain since entering a Trading Halt on Monday to a massive 16%. Not a bad return in just three days of trading!
The rally comes after the network infrastructure provider announced the acquisition of New Zealand's FX Networks for roughly $107.7 million. The strategy behind the acquisition was to "mirror" the success the company has experienced in Australia in the New Zealand market. FX Networks is expected to deliver double-digit earnings per share accretion by FY2016.
Strong rallies like the one experienced by Vocus this week can often deter investors from buying shares. Instead, they choose to wait for the share price to retreat before considering making the acquisition.
However, Vocus Communications represents a strong business with excellent growth potential and could be bought as an alternative to various other telcos like Telstra Corporation Ltd (ASX: TLS) or iiNet Limited (ASX: IIN) for exposure to Australia's booming telecommunications industry.
Regardless of whether or not the stock retreats marginally in the coming weeks (that may not happen), Vocus would make for a fantastic long-term bet for your portfolio.
An even more compelling ASX growth stock…
Despite how attractive Vocus remains, it is lacking one thing that Aussie investors love… Solid dividends. Currently it is yielding just 0.3% based on forecasts for 2014.
