NetComm well placed to win contracts as part of NBN roll-out
Developer of broadband products for global telecommunication networks, NetComm Wireless (ASX:NTC), recovered nicely during July after being beaten up in June due to uncertainty regarding the federal election outcome.
NTC is well placed to win material hardware supply contracts for the federal government’s NBN roll-out but the election was a major source of uncertainty for investors during June.
NTC was sold off aggressively in the lead-up to the election as investors fretted over the outcome of the election and the likely impact on NTC should the ALP win the election and the coalition’s preferred model for the NBN be subject to review.
History tells us the coalition got over the line (just) and calmer heads prevailed in subsequent weeks with NTC finishing the month some 30.6% off its lows.
July 2016 fund updates