Huge Group (JSE: HUG) share price, discussion & sentiment

R2.40 within 18 months. Positioned perfectly.

HUG needs to stop chasing everything and land one proper enterprise contract, nah. At R1.20 the story's priced for zero growth, which is fair given they're still scrambling for traction in the telco space. Let's get a contract, once the deals start, then it will run, simple as that.

fwiw the telco services space here is brutal, but HUG's margins on managed services are actually decent if you look at the EBITDA conversion. Problem is they're still fighting for contract renewals in a market where corporates are cutting capex hard. Imo the swing is whether they can hold their customer base through the next cycle, not revenue growth. Could be wrong but at R1.20 some of the downside risk is priced in.

been through the last couple of sens releases on huge, revenue's pretty flat while costs keep climbing. the managed comms space is tough right now, everyone's getting squeezed on margin. unless they actually land some proper enterprise contracts or get the cloud side moving, hard to see the catalyst here at r1.20.

hug sitting at r1.40 is honestly mental value for a telco with recurring enterprise contracts. the managed services side keeps them sticky with clients even when capex cycles are rough. compare that to some of the bigger names that just chase volume, hug's actually got a moat there. reckon if they can stabilize cash flow and keep churn down, this could be a 3 to 5 year compounder for patient money.

HUG's been bleeding customers to bigger players like Vox and Afrimax, margin pressure is real. Last results showed revenue flat but costs up, thats a problem. At R1.40 you're pricing in a turnaround that i'm not seeing yet, unless they actually land some big enterprise deals this half.

Look, everyone's sleeping on the connectivity play here. Enterprise clients aren't going anywhere and HUG's got the infrastructure locked in, pre-revenue doesn't mean pre-value when you're sitting on actual contracts and customers. Compare this to what Altron was doing five years ago, people thought they were done. Long game only makes sense if you're not checking the chart every week.

read the latest sens on capex guidance, they're being way more conservative than last year. margin compression is real if they can't grow revenue faster. comparable to how Afrihost got squeezed, same market dynamics.

Do you think the lack of revenue growth justifies the valuation at R1.40 though. Most telco plays trade on visibility of cash flow, not hope. Where's the subscriber or contract wins actually coming from.

HUG sitting at R1.40 after that last earnings miss. Enterprise telco play is solid long term but execution on cloud migration has been messy, margins getting squeezed. Worth watching if they can stabilize the managed services segment without burning more cash.

large buy orders stacking at R1.40, patience

hug closed at r1.40 which is nowhere near where it should be if they can actually deliver on the connectivity side. enterprise telecoms in sa is fragmented, most corporates still overpay for legacy stuff. if huge can grab even 10% of that market the margin story changes completely. problem is execution and whether they have the cash runway to compete with the incumbents.

HUG taking a proper hammering down 8.45% today, reckon we're testing support at 120c but the tech selloff is indiscriminate so hard to read much into it right now.

HUG up 7.30% today to R1.47, but the P/E still looks stretched relative to revenue growth in that space. Is this a genuine turnaround or just another pump before the next dump?

HUG at R1.47 is looking decent value if you believe in the turnaround story. Revenue's been climbing and they've cut costs, margins should follow. Not selling at these prices, good day to top up on weakness.

r1.47 is basically free money if they can sort the debt situation. balance sheet is ugly but the underlying business prints cash, seen worse turnarounds on the JSE.

Morning all, let's see what happens

Good morning everyone, worth reading [LINK]

hug sitting on solid fundamentals but that dump yesterday had all the hallmarks of a shake out. last close r1.47 is actually decent support if they hold earnings next quarter. comparable plays like snc recovered nicely once institutions loaded back in, could see similar here if management doesn't disappoint.

Do you think they can actually scale this without burning through cash. R1.47 is pricing in some serious growth but where's the revenue to back it up.