TLS - Telstra Corporation

[sammy84]

And not to mention future fund unloaded right before this crap came out

Potential case for insider trading??
I'm sure the ASIC would actively pursue such an issue (typed in sarcasm)

 

[drsmith]

From Telstra's company announcement today.

Trlstra is currently examining the detail of the reforms and will provide an update to the market as appropriate.

In terms of influence over the overall process it sounds to me like Telstra is still very much outside the tent.

 

[jonnycage]

Sold all mine this morning. Not gonna muck around for a few cents.

For all T3 investors...

Purchased Nov 2006 for $3.6 ($2 + $1.6)
6 x dividends of 14c (Total $0.84)
Today's price $3.11

For a nice return of 9.7% return, or 3% per year...

fair call to mate, and am T3 subscriber so good maths there

seems a shame this puppy aint being allowed to fly

j c

 

[drsmith]

T3 investors also got 1 for 25 if they held on and paid the final instalment. That does not add much to the overall return though and if sold at today's levels would still represent a poor return on investment.

 

[Dark1975]

It makes me sick to see a great auzzie icon can't dominate with a incompetent goverment with different set of rules for monoplies.Take a look at WOW and coles with 80% monopoly in the market.Oh wait sorry i forgot the directors of WOW have bigger pocket handouts and sit on 5 different companies at one time.
Sorry for throwing the topic,But im just upset with this latest announcement.I really thought this telco would take off.Dam this goverment

 

[nikemi]

Is the government going to compensate shareholders for the premium they paid them when they sold TLS initially and paid what they did for what they sold them - a monopoly, now they are concerned and want to fix things but without the cost of the mistake coming out of their pocket.

I forgot they are the government and we are a democracy so they can do what they like and change the regulations if necessary!

 

[skc]

fair call to mate, and am T3 subscriber so good maths there

seems a shame this puppy aint being allowed to fly

j c

Your sarcasm detector didn't go off there...

~3 ish percent p.a. return over the last 3 years is worse than cash, but slightly better than BNB I guess.

 

[jonnycage]

Your sarcasm detector didn't go off there...

~3 ish percent p.a. return over the last 3 years is worse than cash, but slightly better than BNB I guess.

dont worry it went off, just dont waste energy on tls any more.

yep unfortunately tis a dog with fleas to boot.

let the good times roll

jc

 

[ROE]

Is the government going to compensate shareholders for the premium they paid them when they sold TLS initially and paid what they did for what they sold them - a monopoly, now they are concerned and want to fix things but without the cost of the mistake coming out of their pocket.

I forgot they are the government and we are a democracy so they can do what they like and change the regulations if necessary!

government never promise TLS share holders that it will stay a monopoly or wont face regulation...
they spell out the risk in the prospectus...

when you buy a stock there is always an element of risk something goes against it and down
goes the share price...fraud, regulation, more tax, stupid CEO that gamble the company on debt etc...

I like TLS for yield only and that is not really good enough for me to buy...

This is a business that spend more than it earns for many years now and that sort of business doesnt grab
my attention...it doesnt matter how much money you make or earn..if you spend more than you earn sooner or later
something bad may happen to you..

Now its has a pile of debt facing split up battle..could be messy stuff for them.

TLS as a whole debt isnt an issues but now spit the company into 2 that will bring some headaches of debt structure.

 

[jono_oz]

What I find most interesting about todays events is that no one has commented on the fact that the Goverment (The Futures Fund) Sold a huge chunk of its stake in TLS only a week ago..... wow wasn't that fortunate for them!!!!
Could it be INSIDER TRADING?? Surely that woudn't happen!

 

[supermatt]

couldnt agree more with that, man I really am so fuming right now, words cannot describe my anger at the government and tls.
I am screweddddddddd big time, this is going to take years of getting out of my huge tls share loss now.
Well I feel sorry for all the rest of you that have been shafted too.

all the best

 

[ROE]

What I find most interesting about todays events is that no one has commented on the fact that the Goverment (The Futures Fund) Sold a huge chunk of its stake in TLS only a week ago..... wow wasn't that fortunate for them!!!!
Could it be INSIDER TRADING?? Surely that woudn't happen!

If you read future fund performance and their general direction, they have been telling the market for at least a year now that they want to sell down the TLS stake and diversify...

they acted some weeks ago and carry out what they been telling the market.

I think they did not know this is coming..I mean everyone sort of know TLS will face separation sooner or later it's just a matter of timing and how.

Plus they sold it to institution holders which I'm sure fully aware of the risk
facing TLS.

 

[jono_oz]

If you read future fund performance and their general direction, they have been telling the market for at least a year now that they want to sell down the TLS stake and diversify...

they acted some weeks ago and carry out what they been telling the market.

I think they did not know this is coming..I mean everyone sort of know TLS will face separation sooner or later it's just a matter of timing and how.

Plus they sold it to institution holders which I'm sure fully aware of the risk
facing TLS.

Let us review: "Futures Fund sells 21/8 Shares were $3.65 - two days later they are $3.36. I am sure the institutions were less aware than the government about what was about to happen. Minister makes announcement 15/09 shares drom from $3.30 to $3.11" If I were an "Institution" I would certainly steer clear of any further selloffs from the Futures Fund.
Perhaps you are right and the left hand knew not what the right was up to?? I would just like to hear them say it on oath.

 

[QBN_BOY]

Let us review: "Futures Fund sells 21/8 Shares were $3.65 - two days later they are $3.36. I am sure the institutions were less aware than the government about what was about to happen. Minister makes announcement 15/09 shares drom from $3.30 to $3.11" If I were an "Institution" I would certainly steer clear of any further selloffs from the Futures Fund.
Perhaps you are right and the left hand knew not what the right was up to?? I would just like to hear them say it on oath.

Which companies have been toughing for a strategic stake in Foxtel via Consolidated Media Holdings the last couple of weeks. Naive to think no information was out there prior to the TLS announcement.

 

[skc]

Let us review: "Futures Fund sells 21/8 Shares were $3.65 - two days later they are $3.36. I am sure the institutions were less aware than the government about what was about to happen. Minister makes announcement 15/09 shares drom from $3.30 to $3.11" If I were an "Institution" I would certainly steer clear of any further selloffs from the Futures Fund.
Perhaps you are right and the left hand knew not what the right was up to?? I would just like to hear them say it on oath.

Don't be a silly conspiracy theorist. Future fund sold 684.4 million Telstra shares at a price of $3.47. So they may be $250m better off. Would the government risk that kind of backlash from voters (TLS shareholders) for such amount?

In fact, the government is probably pi$$ed off that the Future fund sold at such time causing these kinds of allegations. Having said that, if Future Fund was to sell right after today's announcement that would be just as damaging to the government. So either way - it was hard for government to make good of this absurd situation.

 

[ROE]

Let us review: "Futures Fund sells 21/8 Shares were $3.65 - two days later they are $3.36. I am sure the institutions were less aware than the government about what was about to happen. Minister makes announcement 15/09 shares drom from $3.30 to $3.11" If I were an "Institution" I would certainly steer clear of any further selloffs from the Futures Fund.
Perhaps you are right and the left hand knew not what the right was up to?? I would just like to hear them say it on oath.

People find all kind of excuses for their loss but themselves for not knowing enough about the business and the nature of the industry..

I got ripped off by storm, oh its not my fault it's finanical advisor and greedy banks werent you greedy also in the first place beleive you can get easy return in the stock market?

Wespoint I got con
oh getting 12% is easy?

Opes Prime, leverage up to buy small cap and speculative stocks
oh it's not my fault I was con into it and didnt understand the contract

leverage up and buy speculative stocks are nothing more than gambling on steroids.

and there are thousands who never get burn or fall into these traps
and make good return, can we think they are lucky or they do their homework

its your money, you make the decision take some responsibility

 

[Nyden]

People find all kind of excuses for their loss but themselves for not knowing enough about the business and the nature of the industry..

I got ripped off by storm, oh its not my fault it's finanical advisor and greedy banks werent you greedy also in the first place beleive you can get easy return in the stock market?

Wespoint I got con
oh getting 12% is easy?

Opes Prime, leverage up to buy small cap and speculative stocks
oh it's not my fault I was con into it and didnt understand the contract

leverage up and buy speculative stocks are nothing more than gambling on steroids.

and there are thousands who never get burn or fall into these traps
and make good return, can we think they are lucky or they do their homework

its your money, you make the decision take some responsibility

Damn straight. If you ask me, anyone caught up in those sorts of schemes deserves to lose everything. May as well send $50K to the Nigerian Prince, you know, to cover the transaction costs in his efforts to send you $10 million.

 

[Calliope]

Most brokers are optimistic, and see an upward trend with the opportunity to get involved in the National Broadband related deal;

Oversold and misunderstood and $4.55 target is the UBS headline. They have a Buy recommendation share price reaction they say is “overblown” and separating might potentially liberate TLS in a NBN world. “Capital management or media M&A could also be an option post separation.”

Macquarie Equities upped their recommendation to Outperform from Neutral on the view that the reforms will provide “a catalyst for significant progress towards an NBN-related deal by the year-end.” Now that the regulatory risk in known, they think the catalyst for constructive dialogue on NBN outcomes has arrived and a progress towards an NBN-related deal with follow by the year-end. They have a 360c target price.

Citi has a Hold recommendation and 340c target price. They believe TLS is likely to be range bound between $3 and $3.50 depending on how well TLS negotiates. They are also confident of a favourable outcome under the new management team but lots of uncertainty remains.

GSJB Were maintains their Buy recommendation and 445c target price, 43% above the current share price. They believe if TLS corporate, it could vend in its passive infrastructure or entire copper network into the NBN Co. “We reiterate our view that there is limited downside to the share price from here. Our ultimate worst case valuation for TLS is 290c”.

RBS Equities says TLS is a Buy with a 450c target price, which is 12.5x their FY19 EPS of 36.1c. “Regulatory risks are now clearer and may be bargained down.” They say key downside risks to their target price include higher costs or capex, IT projects running over budget through FY10 and further sales or earnings impact depending on the extent of recession.

 

[Miro]

Most brokers are optimistic, and see an upward trend with the opportunity to get involved in the National Broadband related deal;

Yea, I'm really happy I didn't sell today. I bought quite a bit of TLS just 5 days ago and I was ready to take the losses and move on.

I don't like Telstra but it seems very cheap at the moment, so I'll keep holding.

 

[YELNATS]

Take a look at WOW and coles with 80% monopoly in the market.

There is no existing parallel between the telco and retail food markets.

Woolies and Coles aren't a monopoly in their market. A monopoly means one seller, many or at least more than one buyer (mono = one). Retail food market is an oligopoly.