When a stock almost doubles in just one year, the natural thought for punters who don't own it is to think "It's too late to get in on that action".
But ASX shares don't have memory. It doesn't care what's happened the past 12 months, one month, or even one second.
All that matters is how the business will do in the future.
Keeping that in mind, the analysts at QVG Capital this week pointed out how bullish they are on one ASX tech stock that's rocketed almost 80% in the past year.
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'Strong result' with 'supportive industry activity'
The QVG team felt like the August reporting season went well for internet services provider Aussie Broadband Ltd (ASX: ABB).
"Aussie Broadband continued to re-rate on the back of its strong result and guidance and supportive industry activity," it stated in a memo to clients.
"Aussie was bolstered by data showing them taking 20% of all ultra-high speed plans."
Wholesaler NBN Co is about to bring in changes to its pricing structure, and the analysts are tipping that the mix of plans will determine how well a retailer will do in the new environment.
"Telstra Group Ltd (ASX: TLS) have already taken advantage of these and will raise prices of its lower tier NBN plans by $5 per month."
The QVG team is now getting the same feeling about the NBN market as it did for the mobile sector a few years ago.
"The NBN resale market may be entering a period of rational competition like that seen in the mobile market in the recent past."
It's on for young and old for technology shares
Aside from those longer term tailwinds, there was some exciting news for the challenger telco just this week.
"Aussie made a takeover approach to Symbio Holdings Ltd (ASX: SYM)," read the QVG memo.
"As former Symbio shareholders we see scope for material synergies between the two."
Aussie Broadband is now participating in a bidding war for the communications platform provider, with Superloop Ltd (ASX: SLC) having already entered due diligence after its earlier bid.
Aussie has now been provided the same privilege, with the market watching whether Superloop will come in with a higher offer.
