Australian (ASX) Stock Market Forum

TLS - Telstra Corporation

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ROE said:
NO I dont want a company to pay me dividend when it takes on extra debt to cover it and take on debt to fund its infrastructure..

you look at all Wonderful company and none of those do anything like it.
they pay 50-60% payout ratio, the rest they use for cap ex and increase equity in the company. TLS is like a guy that live from pay cheque to pay cheque. They spend everything they earn then take on more debt when they need the cash to buy a car or TV or whatever, after a series of bad moves they lost their job and they go bankrupt.
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Well, that could be right, but the fact is that Telstra T3 has returned sharesholders 55% and soon a 7% in divds. Happy days.

WBII
 
Warren Buffet II said:
Well, that could be right, but the fact is that Telstra T3 has returned sharesholders 55% and soon a 7% in divds. Happy days.

WBII
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hey good on those with T3 I did have T3 as well but sold them at $2.64
that enough profit for me for a dog of ASX.

I just speak fundamentals and pick out company weak points.

If you make a **** load on TLS good for ya, seem like your systems work for you
dont have to get too personal.
 
ROE said:
hey good on those with T3 I did have T3 as well but sold them at $2.64
that enough profit for me for a dog of ASX.

I just speak fundamentals and pick out company weak points.

If you make a **** load on TLS good for ya, seem like your systems work for you
dont have to get too personal.
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Hey, ROE that is fine, I am happy you made a profit with T3.

I have to ask you, if you believe TLS is that bad why did you invest in it in the first place? It is just an honest question to understand why people invest in companies that they believe don't have good prospects

WBII
 
Warren Buffet II said:
Hey, ROE that is fine, I am happy you made a profit with T3.

I have to ask you, if you believe TLS is that bad why did you invest in it in the first place? It is just an honest question to understand why people invest in companies that they believe don't have good prospects

WBII
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Warren I am guilty of having done this in the past on other stocks I simply did not believe in. The only reason I can give you is that positive sentiment is overwhelmingly favourable to an Sp increase. If an offer is oversubscribed then Sp goes up. I have done this on several stocks at offer and offloaded not too far down the track because I knew it was the sentiment pushing up the price and not the fundamentals. To be honest I knew T3 would be oversubscribed by the mere fact that everyone I knew was talking about it. I should have jumped in and dumped but didn't because I couldn't separate my own emotions of disliking this stock from a true opportunity.
 
Warren Buffet II said:
Hey, ROE that is fine, I am happy you made a profit with T3.

I have to ask you, if you believe TLS is that bad why did you invest in it in the first place? It is just an honest question to understand why people invest in companies that they believe don't have good prospects

WBII
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I buy them because at $3.50 it's relative cheap with the prospect of turning it around but after 6 months or so with the shares pushing up and fundamentals hasnt change and profit margin get hammer each year so it's time for me to let go at a reasonable profit and pick up the next bargain stocks.

Even though TLS did better than predicted because Analysts play into Sol's
hand, he wanted to knock the stock back sooooooooo bad when he join and make all the bad news and make worse possible prediction on earnings so when the news comes out it can only get better and he becomes a hero.

Pretty smart huh. I would do the same TLS is already a dead dog when he join so doesn't hurt to shoot the dead dog down and raise a new puppy and get the love of the family.

But read TLS fine print carefully, their Mobile margin got knock back a whooping 45% to 35%. Cost are higher, for every extra dollar revenue they generate their cost is higher than normal.

So all the signs is there just need to read it. I still maintain TLS is not a good company for now but it may be in 2-5 years, but only time could tell.

I continue to monitor TLS and when all the signs is right (lower cost, higher margin, growth above 8% etc..) I come back in or when it's selling like $3.50 :D
 
ROE said:
But read TLS fine print carefully, their Mobile margin got knock back a whooping 45% to 35%. Cost are higher, for every extra dollar revenue they generate their cost is higher than normal.
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Well, that is the power of a monopoly, any monopoly can do that without any problem and they are spending like crazy to get ahead in the mobile market, specially in the 3G network. Optus which is trying to compite and keep second place will install its network in 3 years!!. TLS has 3 long years to gain as much customers as they can and do what a monopoly does the best, economies of scale. So I am most than happy to see TLS spending millions in mobile and broadband, I believe that is great.

Not all cost increases are bad and I recommend you have a read about monopolies become natural monopolies.

WBII
 
Warren Buffet II said:
Well, that is the power of a monopoly, any monopoly can do that without any problem and they are spending like crazy to get ahead in the mobile market, specially in the 3G network. Optus which is trying to compite and keep second place will install its network in 3 years!!. TLS has 3 long years to gain as much customers as they can and do what a monopoly does the best, economies of scale. So I am most than happy to see TLS spending millions in mobile and broadband, I believe that is great.

Not all cost increases are bad and I recommend you have a read about monopolies become natural monopolies.

WBII
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TLS monopoly is not a good one, they bound by regulations and that will some what restrict in what they can do, sometimes to a deadth :)... see how much money TLS loose when regulation make them open up their copper line?.... Still some form of monopoly is better than none but I prefer Monopoly like Coca Cola, Google where services and quality dictate their monopoly and customers are prepared to pay for it even it cost them more.
 
TLS holding above $4.50 - what I thought was long term resistance. Will be very positive if it can hold above, maybe test it, forming support. Next resistance on the long term chart is up at $5.00 ish. MACD confirming upward trend. Looking ok for the minute.
 

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Warren got some more money to buy TLS at $3.50? it's heading down that way :D

I :) got some ready
 
Good you have a sense of humor Warren :) I thought I'm going to get a blast from you since you are so attached to Telstra :D .

Cheers
 
Unusual volume on TLS yesterday. Any ideas?

Broke through $4.50 again and touched $4.60 an area not seen for some time. Aug 05 actually. For those following we picked the break of the down trend some time ago and it seems to have been recovering OK. Chart forming a big cup, heading back to $5.00 by the look. Lots of resistance between $4.50 and $4.75 though, so there might be some sideways action. Still medium term going up.

(holding - too many. Bought all the way to the bottom after T2 :( - making up for it now :) )
 

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Gurgler said:
I noticed dividends were paid in overnight - any connection, or is this coincidence?
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I think it was options...hit 4.68 this am. Had a good run. I'm not sure what has really changed fundamentally for TLS. Is it safe haven buying? Belief in the 3 Amigo's story? TLS winning the mobile and broadband battle? Release from Gov control? Whatever it is, it's certainly been a turn around story.
 
I missed Telstra on open at 4.16 last after the crash...

Everytime you think Telstra has had its run it keeps kicking.
 
ROE said:
Warren got some more money to buy TLS at $3.50? it's heading down that way :D

I :) got some ready
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Hi ROE,

I just could not resist to quote your entry from January saying that TLS was going to touch $3.50 well it has done it today but ...... it was TLSCA who did it ;)

WBII
 

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