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  • oedd1159 oedd1159 Apr 4, 2013 3:21 PM Flag

    This is very simple to understand

    This is the only stock i have checked thats been profitable as far in time as i can recall with a price moving in the wrong direction. So state your own conclusions . I placed a buying limit order yesterday at a very attractive price ,unfortunately the stock never looked back at

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    • This story is actually pretty amazing. No question that Iliad is engaging in predatory pricing to gain market share and likely lock others out of the market with the blessing of a judge. It is also being helped by FTE through a low cost roaming agreement. This also implies that some its cost is indirectly being passed on to FTE. The company also is suppose to be accelerating its build out but this is really not reflected in its capex at all. It is also not paying much in taxes. A few Insiders own 60 percent of the company stocks which has returned almost 100 percent in 1 year ( in a recessionary period).

      The conclusion is that Iliad is being allowed, by a judge, to engage in predatory pricing with the help of FTE. In the long-term it will likely discourage competition by driving weaker competitors out of the market. Even one the major competitors may decide to exit the market at some point if it concludes that projects are not meeting its cutoff for minimal returns. With this in mind, Iliad will likely increase its prices under a more free market authority. As a result, a few Iliad insiders and investors will become very rich persons with control over the markets. The stock would likely increase to over 500 euros or more easy.

      In the mean time, people will lose their jobs as competitors cut cost to deal with this nonsense. This is clearly an anti-competitive pricing practice and consumers are not going to benefit is the long term. The company will not keep selling service at over a 40 percent loss ( real number is more like 70 percent, the company is getting an unfair advantage here...breaks).