Huge Group: Alternative for landline poised for big things
It will take a huge amount of persuasion to convince investors that telecom services specialist Huge Group is a buy
It will take a huge amount of persuasion to convince investors that telecom services specialist Huge Group is a buy. The share price has risen 670% over five years, more than 350% over three years — and accelerated 46% in the past 12 months. Huge also trades on a demanding trailing earnings multiple of 28 — which is a far headier rating than the better-known "alt-telecoms" play Blue Label Telecoms. There is limited "institutional" interest in Huge — save for Mike Beamish’s investment boutique Praesidium, which has scored enormously from backing Huge since its launch. While the Huge share price has run strongly in recent times, IM believes considerable further upside will be driven by organic growth and acquisitions in the next few years. The possibility of Huge being bought out by a larger telecoms player can also not be discounted.
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