As of Wednesday, 10 October, TeamTalk Ltd [NZX:TTK] has dramatically jumped 8.86% on the New Zealand Stock Exchange in one day.
TeamTalk is New Zealand’s largest mobile radio communications company, providing voice and data solutions to businesses nationwide.
TeamTalk has a market capitalisation of $24 million, and the share price is currently sitting at $0.86 at present.
So why has the TeamTalk Ltd share price risen?
Today the company announced that the development and expansion of its new digital radio network is proceeding according to plan. This will increase the quality of coverage and the availability of services nationwide.
Following a successful trial in Canterbury, TeamTalk is now rolling out the infrastructure to other areas — Auckland, Northland, Waikato and Wellington.
They anticipate that the network will be 50% complete by this Christmas, expanding to other regions such as Tauranga, Napier and Otago.
This news has been received very positively and has buoyed investor sentiment.
Where can TeamTalk Ltd go from here?
Once complete, this new digital radio network will be the only one of its kind in New Zealand. This infrastructure offers TeamTalk a distinct competitive advantage. It will also be bolstered by additional improvements made by subsidiary CityLink to its preexisting fibre network.
If TeamTalk can remain on track and deliver on its promises, we may see further bullish growth in its stock valuation. The prospects look bright as TeamTalk solidifies its unique niche position in the New Zealand market.
Editor, Money Morning New Zealand