The Vocus Group Ltd (ASX: VOC) share price bounced back from its recent nosedive, as can be seen below.
Vocus share price
Over the course of the year, Vocus shares are down 60% versus the market's, or S&P/ASX 200's (Index: ^AXJO) (ASX: XJO), return of 11%. That's a stark difference by anyone's measure.
The recent uptick in the company's shares, which began at the beginning of June, spawned from a potential takeover.
Then, also this month, the company released its strategy day presentations. Vocus reassuringly reinforced its earlier financial guidance for its 2017 financial year (FY17).
Vocus, which owns popular telco names like Dodo and Primus, said its FY17 revenue is expected to be $1.8 billion while its underlying profit is forecast between $160 million and $165 million.
For many Vocus shareholders, who watched their investment plunge from over $8 to lower than $3 in less than one year, the takeover offer and profit outlook statement provided a welcome boost to its share price.
Is it time to jump on the Vocus bandwagon?
At today's prices, Vocus shares do not look dirt cheap. They are perhaps 'good' value but not great value. The company's shares change hands around eight times its enterprise value. What's more, the company may cut its dividend to uphold its rigorous capital expenditure program.
However, if you are a long-term investor there are a few things to like about Vocus. It's ability to cross-sell telecommunications brands with other services like energy, gas and insurance is one example. Its willingness to steal market share on the NBN is another.
Finally, it is expected to earn synergies from its most recent acquisitions, including NextGen Networks, Amcom and M2 Group.
In my opinion, long-term investors could do worse than add Vocus shares to their watchlist at today's prices.
