A good case study in a unknown but extraordinary company

[Baoxiaodao]

When I choose companies to invest, I always put people before numbers. A unique set of talents can produce miracles even in a commoditized industry. And when I was reading this company's history, I was nothing but speechless.

 

M2 Telecom's revenue in 2001 was around 3 million. Through acquisition and organic growth, now the revenue on the run rate basis is 430 million. IPOed at 0.25/share, it went up 1200% in 7 years without counting in dividend.

 

Guess what business it is in? A reseller of telecom services.

 

I strongly recommend reading everything about this fascinating business!

[Liberty]

I'm curious to know what makes you think that this kind of growth will continue in the future? What's special about their strategy? What is their competitive advantage?

[Baoxiaodao]

I'm curious to know what makes you think that this kind of growth will continue in the future? What's special about their strategy? What is their competitive advantage?

 

I am not recommending buying this stock, so I do not really care if the growth will continue. My point is that this is a very typical case where a 10-bagger was born in a lousy industry. This company succeeded by inventing a whole different set of products catering to SMEs. The result is astounding.

 

I have heard hundreds of time management talking about differentiation. But it is to hard to believe them, just like M2. How could anybody reselling telecommunications service differentiates itself? M2 did it. You may argue other larger competitors can copy its products and crash it. But M2 has done this successfully over the last 10 years.

 

I believe reading into history is the best way to learn about the future. M2 offers a great case study(and free!) to give you insights about how a small company in a commodity business can succeed. At least for me, this lesson is priceless!

[twacowfca]

I'm curious to know what makes you think that this kind of growth will continue in the future? What's special about their strategy? What is their competitive advantage?

 

I am not recommending buying this stock, so I do not really care if the growth will continue. My point is that this is a very typical case where a 10-bagger was born in a lousy industry. This company succeeded by inventing a whole different set of products catering to SMEs. The result is astounding.

 

I have heard hundreds of time management talking about differentiation. But it is to hard to believe them, just like M2. How could anybody reselling telecommunications service differentiates itself? M2 did it. You may argue other larger competitors can copy its products and crash it. But M2 has done this successfully over the last 10 years.

 

I believe reading into history is the best way to learn about the future. M2 offers a great case study(and free!) to give you insights about how a small company in a commodity business can succeed. At least for me, this lesson is priceless!

 

How did they do it?  Thanks for sharing!