Vocus Group Ltd (ASX:VOC) down despite $136 million subsea cable contract win

Shares in telecommunications provider Vocus Group Ltd (ASX: VOC) slid 1.5% into the red today to sit at $2.59 at the time of writing on news of a $136 million Federal Government contract to build an international sub-marine cable between PNG, the Solomon Islands and Australia.

The company’s website yesterday confirmed Vocus would take part in the “centrepiece of Australia’s development assistance program to the Pacific” project, but there is no official ASX announcement made to shareholders as at the time of writing.

Trading volume on the Vocus registry today seemed as normal, but shareholders are in the dark in terms of the project’s confirmed capital expenditure, which is ominous given the company’s high-level of existing debt. It is likely Vocus will make a profit on the contract though having been awarded it.

All eyes are on the telecommunications sector right now.

Telstra Corporation Ltd (ASX: TLS) today announced plans for a drastic restructure that could see 8,000 staff sacked.

All of this unrest is good news for emerging player TPG Telecom Ltd (ASX: TPG), which waits patiently in the wings ready to pounce on market share up for grabs.

The Disruptors: 3 Revolutionary Aussie Companies to Back for 2018

We’re living in one of the most exciting times in investing history. Innovation and a booming culture of entrepreneurship are constantly creating new companies with the potential to make forward-thinking investors very rich. Now more than ever, one small, smart investment could make a huge difference to your wealth.

That’s why at The Motley Fool we’ve been scrutinizing the ASX to uncover the kinds of companies that we believe could turn into the next Cochlear or REA Group.

We’ve found three exciting companies that we believe re poised to perform in the new year. Click here to uncover these ideas!

Motley Fool contributor Carin Pickworth owns shares of Telstra Limited. The Motley Fool Australia owns shares of and has recommended Telstra Limited, TPG Telecom Limited, and Vocus Communications Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.