It would normally seem prudent to await at least 6 month new highs, and bullish action above, at least, a very long period moving average.
.. said CEO Andy Penn."The proposed restructure is one of the most significant in Telstra history and the largest corporate change since privatisation. It will unlock value in the company, improve the returns from the company's assets and create further optionality for the future,"
"The challenges and disruptions of the last 6 to 12 months have reinforced the increasing value of infrastructure assets globally; the importance of the digital economy, not only to business but to the whole of Australia and its economic recovery; and the dependence of the digital economy on telecommunications as its platform. "Our proposed new corporate structure reflects this new world and will help us support the foundation for it; one that is in the interests of our shareholders, our employees, our customers, and ultimately one that benefits the country overall."
I guess the question is, will Telstra be worth the sum of its parts?Telstra said that its proposed restructure will enable it to take advantage of potential monetisation opportunities for its infrastructure assets. The restructure is expected to be complete by December 2021. The business will be split into InfraCo Fixed, InfraCo Towers and ServeCo.
.. said CEO Andy Penn.
But, is this just History repeating?
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Despite the headwinds of the last few years from the loss of fixed line revenues to the NBN and declining mobile earnings, we remain optimistic about Telstra for three key reasons – the prospect of improved mobile earnings as a result of consolidation in the sector; the likely monetisation of some of Telstra’s infrastructure assets; and Telstra’s projected strong cashflows, all of which should enable the company to improve its financial position and maintain its dividend.
An interesting aside, I wonder how they will break up the debt, with the demerger, how much each entity takes with it and how they fund it.Technically COVID 19 has opened a new world. I believe at a current price following the demerger, TLS is more than likely to offer a great opportunity for the believers. It has the size. insto's backing, organisation, and reputation. Some small ups and downs but in midterm to longterm TLS will outweigh its competitors.
Disclaimer - Holding long - DYOR - every one has his or her own investment/trading strategy
It is a multi billion dollar question. Any one knows the answer would be having lunch with Andrew.An interesting aside, I wonder how they will break up the debt, with the demerger, how much each entity takes with it and how they fund it.
Certainly an interesting period in Telstra's history.
Sounds as though the question still needs answering.The Telstra chairmans address didn't do anything for my underlying feelings, I still feel there is a lot of navel gazing going on, as to where the growth and income is coming from.
There are several references, as to whether the earnings are achievable, to support the current dividend.
Telstra is looking to simplify its administration and streamline its shareholder services. Telstra shareholders on the New Zealand register have been reducing over time and, given the accessibility of the ASX to New Zealand-based shareholders, Telstra considers that delisting is an appropriate step,
And punched through for the 12 month high today.and getting close to a 12 month high for TLS, spurred on by corporate activity..
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