TLS - Telstra Corporation

[ROE]

I agree - except for the fact that is not a few. I have yet to meet a satisfied customer of TLS. A mate of mine works for TLS and when I asked about hooking up our phone (we have just moved) he recommended several companies - none of which were TLS!! When I queried him he said that he would never recommend them. Even though he gets a staff discount off his phone bill if he is with TLS he has his phone with another company.

I thought I would give them another chance and went into the local TLS shop to enquire about home and mobile phones. The sales girl told me that I would be better off with Optus as TLS was too expensive!!!!

With that kind of service and reputation - what hope do they have?

malachii

You may be on to something there but I usually looks at financial books to determine if customers abandon the company or they don't make enough in certain area......This will tell me whether the customers shout loudly but they couldn't be bother switch carrier because they know they get the same treatment in Optus and Vodafone.....

very much like the banks lot of shouting and bitching about banks not many people do anything about it....

Right now the book tell me they are losing fix line but this is a problem
they have to address at some stage this is a problem management has to tackle head on.....

if they decline in fix line and other division then it worry me
but decline in old ancient asset only to be replaced by growth in Wireless, Data and Foxtel then it's a good thing for Telstra...

TLS do have their fair share of problems but what they lose in one area they make money in other area and their return on asset is the best
of its class..

at a certain price TLS become compelling value despite all their problems.

TLS has many unique assets other Telco in the world would dream of having
all it need is decent management to get a high return for these assets
by changing the way they offer their services (bundle is the key here) and I think Thodey already started this journey not too long ago...

 

[AngusSmart]

This was sent to my email, and i am not a member of fat..

http://www.fatprophets.com.au/Membe...C9701E}&product=Australasian Equities&pt=paid

 

[sptrawler]

I tend to think the issue with Telstra now that they have a general agreement with the NBN. Is how they offer competing plans with the other telcos and don't bring the wroth of the ACCC down on them. The Government has to give Telstra a fair go which should allow them to protect their consumer base while giving away their fixed line consumers to the NBN. That would indicate the Government would have to lift the restrictive legislation that stops Telstra from offering competitive plans similar to the other carriers. If this happens (as it should) Telstra would stop bleeding customers and start to build up its customer base again.

 

[boofhead]

Does the legislation cover NBN? I don't think Telstra paying for access to NBN will be an excuse for anything except lower profits. Optus is large and often not competitive with other telcos. Telstra also has interests in international fibre.

 

[BrightGreenGlow]

So guys when will the deal with the NBN become iron clad? I could imagine a price around $3.60 on that day? Since this should happen soon especially with the election coming very soon is TLS a strong buy? I have $20k waiting to put into something soonish and I feel TLS would be a good bet. Thoughts?

 

[drsmith]

When ??

More like if. The current ALP government has to be re-elected first.

Everybody likes to imagine higher prices for their investments.

 

[BrightGreenGlow]

If the Libs get in there will be no NBN or a forced separation by the ALP so its win.win isn't it????

 

[drsmith]

If it is a win win for Telstra regardless of who is in power, then why would that not be factored into the current share price ?

 

[ROE]

So guys when will the deal with the NBN become iron clad? I could imagine a price around $3.60 on that day? Since this should happen soon especially with the election coming very soon is TLS a strong buy? I have $20k waiting to put into something soonish and I feel TLS would be a good bet. Thoughts?

Factor in some cut for yield say 24 cents I think the yield can be maintained at current level or 24 cents for a while yet

I would buy at price closer to $3 to factor in margin of safety to have high yield with some risk to capital decline but not hell of a lot at price closer to 3

I put more than your amount at 2.92 some times ago when all the negatives news going against telstra. I soon figure out at that price and yield it is as good as it get for any stock

Still holding for yield

 

[BrightGreenGlow]

If it is a win win for Telstra regardless of who is in power, then why would that not be factored into the current share price ?

Maybe everyone is taking into account when the FF will offload another lot of shares?

I'm very tempted to buy a few thousand more TLS soon. Hoping the SP will drop a few more cents though. When does TLS report their next profit?

 

[snowking]

Maybe everyone is taking into account when the FF will offload another lot of shares?

I'm very tempted to buy a few thousand more TLS soon. Hoping the SP will drop a few more cents though. When does TLS report their next profit?

TLS reports on the 12th of August, only a couple of weeks away now.

Business Spectator has a full list of company reporting dates, http://www.businessspectator.com.au/bs.nsf/Article/EARNINGS-CALENDAR-pd20100727-7RA52?OpenDocument

 

[BrightGreenGlow]

TLS reports on the 12th of August, only a couple of weeks away now.

Business Spectator has a full list of company reporting dates, http://www.businessspectator.com.au/bs.nsf/Article/EARNINGS-CALENDAR-pd20100727-7RA52?OpenDocument

Thank you
.

 

[sptrawler]

I tend to think the issue with Telstra now that they have a general agreement with the NBN. Is how they offer competing plans with the other telcos and don't bring the wroth of the ACCC down on them. The Government has to give Telstra a fair go which should allow them to protect their consumer base while giving away their fixed line consumers to the NBN. That would indicate the Government would have to lift the restrictive legislation that stops Telstra from offering competitive plans similar to the other carriers. If this happens (as it should) Telstra would stop bleeding customers and start to build up its customer base again.

.

The terrain seems to have changed and what I mentioned above seems to be coming to fruition. http://www.smh.com.au/business/mobile-price-war-looms-for-telcos-20100729-10wvq.html .
Well if you take the latest ACCC fine into account $18M (not enough, says the competition) there seems to be a bit of panic coming into the competitors. Well I for one, think they know they are like the people crying wolf for the last 10 years. Now they have the real wolf on their doorstep and they are $#!T!#&. A level playing field, AT LAST A FAIR GO FOR TELSTRA SHAREHOLDERS.

 

[sptrawler]

I forgot to mention, Congratulations ROE, picking them at $2.92 was a winner.
Even if Liberal win the election my guess is they will continue on with the NBN. Business and government require a secure network, wireless doesn't provide it and Telstra was being shafted to have to provide it(with the copper network)at the shareholders expense.
With the NBN the Government will be supplying the secure infrastructure that is required(as it should be) not the Telstra shareholder.
Telstra will be leasing out it's exchanges and infrastructure to the government to provide the secure service. Telstra will then be able to compete with the other users eg Optus, to supply retail services at competitive prices with a much better and far reaching wireless network.
I can only see upside for Telstra with the burden of the Universal Service Obligation being lifted and the dying copper network being taken over by the Government, leaving Telstra with the best wireless network and leasing it's infrastructure for ongoing income. $h!t it has been a long time coming but maybe the outcome will have been a torturous but excellent result.

 

[sptrawler]

boofhead, I don't have any references but I am making an assumption that there will be some kind of cost associated with a multiplexing device required at the home and also some form of labor and materials cost to pull out the copper and pull in the fibre. Also one would assume for a $43 billion outlay there would be some form return on capital required, maybe the taxpayer will wear it. But from information available on the net, places that have the superfast broadband have not seen a corresponding superfast take up of the services. At the end of the day it will depend on the cost, most people just browse and that speed is governed by the site you are viewing.

Well boofhead, the quote in April is proving correct. The take up in Tassie has just been reported on the news as low(hot off the 5 PM news WA time). I think this will put more pressure on the Government, whichever party, to continue on with the NBN because it is the responsibility of the Government not the Telstra shareholders to supply the secure network.

 

[sptrawler]

If it is a win win for Telstra regardless of who is in power, then why would that not be factored into the current share price ?

I hate to keep hijacking the thread but I just love seeing Aussie companies standing up to the multinationals.
Dr Smith i accept your comments with high respect. but how would the fund managers make money if all shares were fair value, eg why is WBC at such a discount to CBA if is a reflection of fair value. Chart them both against each other and taking into consideration their take overs and their shares on issue to earnings potential. One would have to think WBC is a bargain.
Again these are personal beliefs and I did sell CBA to buy WBC

 

[drsmith]

There's not much scope for variation in the assessment of fair value if it's only based on who is in government and it's a win win either way.

 

[Garpal Gumnut]

If the ALP get re-elected they will go gang busters.

They will probably trade sideways or fall a bit if the Libs get over the line.

The Rollout is in their favour.

I must have a close look at their chart on the weekend.

gg

 

[Boggo]

I may be wrong but I suspect that the end result of people like me trying to call the Telstra Tshop in the Marion shopping centre from Brighton (just over 1 km away) and getting put through to a call centre in the Philippines to be re-directed may have an impact on the financial results just published.

Then again I could be wrong

 

[ROE]

I forgot to mention, Congratulations ROE, picking them at $2.92 was a winner.
Even if Liberal win the election my guess is they will continue on with the NBN. Business and government require a secure network, wireless doesn't provide it and Telstra was being shafted to have to provide it(with the copper network)at the shareholders expense.
With the NBN the Government will be supplying the secure infrastructure that is required(as it should be) not the Telstra shareholder.
Telstra will be leasing out it's exchanges and infrastructure to the government to provide the secure service. Telstra will then be able to compete with the other users eg Optus, to supply retail services at competitive prices with a much better and far reaching wireless network.
I can only see upside for Telstra with the burden of the Universal Service Obligation being lifted and the dying copper network being taken over by the Government, leaving Telstra with the best wireless network and leasing it's infrastructure for ongoing income. $h!t it has been a long time coming but maybe the outcome will have been a torturous but excellent result.

Nothing to be congratulated just trying to get a decent return for my money over the cycle of my working life before I retire

on that note I bought another 6500 shares today at $2.95