TLS - Telstra Corporation

[BrightGreenGlow]

Things are looking better than they have for a long time for TLS but too many unknowns for my money.

Will increased market share = increased profits?

Will they stop borrowing to pay dividends?

Can the culture be turned around?

Will a change of govt honour NBN deal? - remember we have a hung parliment.

What will competition do? Sit around and let TLS steal market share?

1. I'd like to think so. Every contact is money to Telstra not a negative. Sure the prices are low but another few million could happy and hey, that's a lot of money. Coverage is a big thing for TLS, they have a big monopoly on it and you'll notice more and more individuals and businesses using products like iPads. Telstra is the ONLY suitable choice for mobile data. Mobile data will be a big market in the future.
2. Maybe not, however I believe they will start to make more money once people realise dealing with Telstra is FAR better than Optus/3/Voda.
3. Maybe, it will take a long time. Thodey has them on track I believe.
4. Labor will control the NBN deal as government so that point was valid a few months ago but not so now.
5. People that want mobile phone/smart phones can really only pick Optus or Telstra. With Telstra only a few bucks behind the pace now; smart people will choose Telstra if they know anything about data rates and coverage.

These are sensible answers and could happen, however, most of the time people and the market is and are not sensible. What do you guys think?

 

[Calliope]

These are sensible answers and could happen, however, most of the time people and the market is and are not sensible. What do you guys think?

I am optimist for the first time in years. I got back in yesterday at $2.90. The future fund bogey-man can't hang around for ever.

I'm actually finding it quite hard to write this however given Telstra's result yesterday I'm suggesting that investors looking for some yield and potential upside step into Telstra. One of my main rules when trading/investing is not picking up stocks that are in a downtrend - both in price and in earnings momentum. We've started to see Telstra find some price support over the last few weeks and the results yesterday suggest that earnings have now bottomed.

There are certainly still risks for Telstra and the main one here is the large overhang of the Future Fund who still owns 6.8% of the company. The Future Fund have been very transparent in their intentions to sell down that stack and in my view this would have given international hedge funds a reason to short the stock. This is now a more questionable prospect when we consider that earnings are gaining momentum and there is more clarity in its role with the NBN.

The stock continues to yield 10% FF which has been confirmed for the next two years. If the Future Fund does come out and say their 'selling has stopped' this should prompt a rally in the stock. We're also seeing a repositioning of Telstra with a rejig of its product offering and pricing points which should drive customer acquisition

http://www.finnewsnetwork.com.au/BrokerCommentry/229/Morning-Note-|||-RIO-+-TELSTRA-Results-

 

[nulla nulla]

One of the things I noted in the news coverage of Thodey's presentation was his comment, that "Telstra incurs and takes to book all the costs associated with generating the additional market share at the commencement of the contracts but the revenue comes in from those contracts over the following 12 - 24 months of the contract".
On that basis I would expect costs to be held or lower going forward as income from the additional market share offsets the expence of gaining further market share.

 

[Wysiwyg]

I went into a Telstra shop today to buy a new mobile phone sim. card to notice the walls and ceiling were peeling paint like real bad. Sort of like entering a butcher shop and flies are buzzing around everywhere. Not to mention the youth's primary concern was extracting customer dollars through "plans".

 

[BrightGreenGlow]

Telstra Dividend and NBN play
Initial Capital: $20,000
Shares Bought: 7194 @ $2.78
======================
Current SP: $2.96
Market Value: $21,294
======================
Gain since play: $1,294

Another great week for telstra... bit of a pitty it fell yesterday 2c, thought it was holding. The NBN/Div play has now surpassed 14c + so once the dividend comes out hopefully it will still see a profit. Still 2 more trading days to lift the SP before the dividend date.

 

[nulla nulla]

I think you will find that tls goes exdiv on Monday 21 February. If you were planning to unload before the exdiv date, it is too late. On Monday the share price will probably fall by as much as the div and a component for the franking credit.

Could be a trade in the bounce arround, for the brave. Could also provide another opportunity to get in, if you are confident that it will improve with the changes they are making and the NBN broadband rollout.

Remember, if you want to benefit from the franking credit linked to the div, you need to have held the shares for 45 days before you sell.

 

[Tysonboss1]

I think you will find that tls goes exdiv on Monday 21 February. If you were planning to unload before the exdiv date, it is too late. On Monday the share price will probably fall by as much as the div and a component for the franking credit.

.

Yep, it would be completely rational to believe that TLS may fall back towards $2.75 - $2.80 over the next few days.

 

[Tysonboss1]

. Not to mention the youth's primary concern was extracting customer dollars through "plans".

I hate that, I went to Maccas the other day and it seemed their primary concern was extracting customer dollars through the provision of meals.

 

[Boggo]

Remember, if you want to benefit from the franking credit linked to the div, you need to have held the shares for 45 days before you sell.

Only if you are claiming over $4999.99 in franking credits.

 

[Wysiwyg]

I hate that, I went to Maccas the other day and it seemed their primary concern was extracting customer dollars through the provision of meals.

LOL Would you like fries with that? No dough boy, just give me what I asked for please.

 

[sptrawler]

Only if you are claiming over $4999.99 in franking credits.

Or if you are a share trader or a SMSF, I think

 

[nulla nulla]

I hate that, I went to Maccas the other day and it seemed their primary concern was extracting customer dollars through the provision of meals.

Had to laugh. A quick witty response and drier than a New Zealand Cabernet Blanc.

LOL Would you like fries with that? No dough boy, just give me what I asked for please.

Have to admit. macca's started it all with "Would you like fries with that?" Now upsizing is a standardised selling concept regardless of what you are looking to buy.

 

[BrightGreenGlow]

I'd take the 14c franked dividend than selling the shares. Bring on July

 

[nulla nulla]

Did you top up on the retrace?

 

[tothemax6]

5. People that want mobile phone/smart phones can really only pick Optus or Telstra. With Telstra only a few bucks behind the pace now; smart people will choose Telstra if they know anything about data rates and coverage.

Just like to point out I have a smart phone and I'm with 3. Cheaper, unless you simply must have EDGE data rates and high quotas - i.e. you are tethering your phone to a laptop or you spend all day watching youtube on your phone.

 

[6figures]

anyone know why TLS loss 5.4% yesterday?

 

[Tanaka]

anyone know why TLS loss 5.4% yesterday?

... Yesterday was it's 'Ex Dividend Date' You can find that infomation on their website or the ASX website.

 

[awg]

anyone know why TLS loss 5.4% yesterday?

C,mon champ,

you only would have needed to read the few preceeding posts to have your question answered.

TLS went ex-dividend, which means, in a flat market, that the price of the stock will fall by approximately the amount of the div...14c + the franking credit.

Yesterday was also a down day on the market.

Because TLS pays a whopper of a div, it would ususally follow this pattern exactly, unless some other factors were acting upon the SP

 

[BrightGreenGlow]

Did you top up on the retrace?

No but I'm thinking aboutselling MAP due to cgt tax cut in half and putting that capital into TLS. I just bought more oil related stocks but to me TLS is looking very cheap at the moment. I wasn't expecting today to be a negative day for TLS. I'm guessing the FF offloaded for after the dividend and also today. I would suggest it will bottom out this week and increase again towards Late June. I'll keep tracking it as I feel next report will be very good for TLS with all those new subscriptions and maybe even more.

Have you bought in again?

 

[BrightGreenGlow]

Just like to point out I have a smart phone and I'm with 3. Cheaper, unless you simply must have EDGE data rates and high quotas - i.e. you are tethering your phone to a laptop or you spend all day watching youtube on your phone.

For the average Joe that's ok. For the Y generation and onwards (future) the speed you get and coverage with non-Telstra will and is right now rendered garbage. Think of it like any technology. Did you ever think 10 years ago a 2gb HDD would suffice.. Yes. Now computers are standard 320gb atleast right?

Same thing will happen once 4g comes. Telstra will have another monopoly... Grand times ahead!