TLS - Telstra Corporation

[drsmith]

At a yield of 8.75% fully franked, Mr Market is now factoring in a reduction in expected future dividends.

 

[bloomy88]

At a yield of 8.75% fully franked, Mr Market is now factoring in a reduction in expected future dividends.

But then again, Mr Buffet doesn't think much of the manic depressive Mr Market...
Still, it looks like TLS will get hammered in the short term as a result of their poor results and the stalled NBN deal

 

[Taltan]

And so today TLS have sent a letter to shareholders outlining their objection to the NBN legislation. As per my previous posts I suspect this letter is not to shareholders - its to voters. The board's rightfully trying to fight back & next could be a letter advising voters of their reduced dividend around election time.

Its politics from here on in and the market at under $3.20 still favours Conroy to be victorious.

 

[Mofra]

If the PSTN is 30% of their biz and its falling at a rapid rate, in fact falling at an accelerated rate, and their other juicy biz is under pressure from competitors. How long is that 8% div gonna last. There's a fair amount of unknown risk in that div I reckon.

True - also worth mentioning that much of the growth in their other "juicy biz" will be limited by mobile bandwidth - the bandwidth with a competitor's holding that will now be combined into the largest single holding due to the merger of Hutch & Vodaphone. The upside is limited and the risk is big - growing competitors, outdated business and the dreaded legislation risk from a government that still remembers the combatant Sol years.

*Insert whiny gen Y voice here* "Copper network is sooo last century"

 

[Trembling Hand]

And so today TLS have sent a letter to shareholders outlining their objection to the NBN legislation. As per my previous posts I suspect this letter is not to shareholders - its to voters. The board's rightfully trying to fight back & next could be a letter advising voters of their reduced dividend around election time.

Its politics from here on in and the market at under $3.20 still favours Conroy to be victorious.

And so they should.

NBN Co Exposure Draft Legislation
On 24 February, the Government also released draft legislation that would govern how NBN Co is operated
and regulated. Although this is only draft legislation, it raises for the first time the prospect of NBN Co becoming
a Government-funded retailer, not just a wholesale network provider. Such an outcome would run counter to the core purpose of the NBN and the Government’s primary policy objective of restructuring the industry to have separate providers for retail and wholesale fixed network services. We are very concerned about this potential change in the Government’s position. If enacted, we would need to factor this into the

http://www.telstra.com.au/abouttelstra/investor/docs/tls724-shareholder-letter.pdf

It beggars belief that they, Conroy, are now trying to add the "option" to also retail. Its just truly stunning. Isn't it??

 

[UMike]

And so they should.


http://www.telstra.com.au/abouttelstra/investor/docs/tls724-shareholder-letter.pdf

It beggars belief that they, Conroy, are now trying to add the "option" to also retail. Its just truly stunning. Isn't it??

Nothing this government does atm stuns me.
Really hope they get voted out at the next election or at least get a masive wake up call.

 

[McCoy Pauley]

The letter gives nothing of comfort to current investors and it's little wonder that TLS has hit a new all-time low today.

 

[Frank D]

TLS

Looking at TLS there is a potential move towards the lower levels
@ 2.47-$2.58.

If it gets that low I'd be happy to BUY it.

If it doesn't get that low i'll use a swing pattern in April as support.

 

[sptrawler]

If NBN Co has all the backbone infrastucture and can also be a retailer and the government funds it all with taxpayers money. If it sells out in 5 years who would buy it when it is just a repeat of Telstra. 10 years down the track the government could do the same again. Sell the publics asset to the public and then shaft them, talk about history repeating,what a scam.

 

[jake]

Re: TLS - Telstra Shares May Rise

Last Thursday in the Australian Financial Review it was reported that Telstra (TLS) would soon do an International Road Show.

Surely the roadshow would lead to a rise in the share price.

Also with the NBN letter to shareholder having gone out and leading to panic selling the shares may have already bottomed.

The Labor Party would probably like to have the NBN matter resolved in the next six months prior to the next federal election sometime this year.At that time if the NBN matters are resolved Telstra shares may rise considerably.

Always seek the advice of a sharebroker before buying these or any other shares. I may be right or wrong.

 

[McCoy Pauley]

I hear what you're saying, Jake, but as a long-term holder of TLS, I still feel that there's more downside on the SP before it turns the corner.

Conroy and the Commonwealth Government are clearly intent on belting TLS around the head with the NBN Co, and there's no doubt that the inclusion of a possible retail side to NBN Co in the draft legislation was intended to send a strong message to TLS management.

In my view (and everyone should do their own research), there's no compelling reason to buy TLS. I'm continuing to hold because I don't feel like selling into such a weak market, but I think the SP could sink further over the next few months.

 

[SuperGlue]

Any possibility of Telstra being a takeover target by a foreign Telco??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????

 

[oldblue]

Any possibility of Telstra being a takeover target by a foreign Telco??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????

Nothing's impossible but why would anyone else want to step into Telstra's shoes and take on the Commonwealth Government?

Especially a foreign telco?

Telstra's battles are similar to those experienced by British Telecom and Telecom NZ. In both cases, the telcos have come off second best and have had to adapt to govt policy and regulation. And no-one else has wanted to buy into those particular fights.

 

[Mofra]

Any possibility of Telstra being a takeover target by a foreign Telco??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????

Some of the big foreign telcos already have a presence here, and they would not want to buy into the shrinking market of copper infrastructure and the associated regulatory dramas that Telstra face.

A major telco wanting to establish a presence here would focus on higher margin product offerings and leech off whichever carrier would sell them bandwidth/exchange space.

 

[McCoy Pauley]

The Liberals have flagged that they will vote against the bill to break up Telstra in the Senate and Sen. Fielding has indicated that he will also vote against the bill.

There's a possibility of at least one National Senator crossing the floor, as the Nationals apparently believe that the break-up of TLS will lead to improved services in regional and rural areas.

http://www.theaustralian.com.au/bus...plan-hits-a-wall/story-e6frg9hx-1225838885252

 

[sptrawler]

At least Nick Minchin is calling it as it is, blackmail by the government to re-nationalise Telstra as the NBN for minimal cost. The joke with it all is then they are going to re-float it again in 4 to 5 years. If the Government want open competition in the Telecommunication industry why don't they build their own infrastructure and then float it in competition with Telstra. This would also force Telstra to update their infrastructure. Lets hope common sense prevails and Conroy stops head butting. Then us share holders may get some peace, that would be nice.

 

[McCoy Pauley]

Yeah, if you can get a hold of hansard for the Senate debates yesterday on the bill, it makes for some interesting reading as a holder of TLS.

It's interesting to note that since the Opposition and Sen. Fielding publicly said they would oppose the passage of the bill, the TLS sp has rebounded a few percent and reached as high as $3.10 this morning (but is now about $3.07-$3.08/share).

 

[ers_6]

shouldve bought in around the 2.50 mark.
win some you lose some i guess...

anyone see a downturn around the corner considering the speculation at present?

 

[sammy84]

TLS $1b debt issue:

http://news.theage.com.au/breaking-...ls-1b-euro-of-10year-bonds-20100316-qarp.html

Apparently used to rollover old debt facilities, nevertheless I can't help but think this is a test of the waters.

Could be building a war chest which would be used to start their own independent NBN. If this was to happen, logically a reduction in dividends would follow as well.

All pure speculation

Dis: I don't hold, but would like to see TLS turn around for all those suffering holders out there.

 

[trainspotter]

I am going to go "disgruntled postal worker" on Telstra and stop shooting when I run out of bullets. I have NEVER had service as bad as what I have just received from TELSTRA !!!! I moved from one premise to another and asked Telstra to changeover the phone lines. Very straight forward you would think?? Instead they have changed my account from a Home Budgetline to a Business line and have sent the bills to the premises (which is a storage shed and the phoneline is for an alarm system only) which has NO letterbox as it is a commercial storage shed (Did I mention this before?) Therefore they have now cut off my phone and sent me off to CRAA to really p*ss me off .......... *hand me my shotgun* Never mind that I have 3 mobiles and 7 other landlines with this same company ...... at no stage did they try and call me or text me to advise the accounts had not been paid? Nevermind that I have been with Telstra since 1991 and my mobile bill is regulary $500 per month. Don't even consider the fact that every other bill I have had with them has always been paid on time etc. *reload*

GRRRRRRRRRRRRRRRRRRRRRRR @ TELSTRA !!!!!!!!!!!! SREKNAW & SDRATSAB