TLS - Telstra Corporation

[jaystar86]

I can't believe i'm even admitting this... but... TLS looks like it could form into a reasonable trade (as per the above analyses and my own opinion)...

Adding to the appeal for me is their new CEO seems to be able to get things done... unlike their last highly overpaid excuse for a leader.

 

[BrightGreenGlow]

Telstra Dividend and NBN play
Initial Capital: $20,000
Shares Bought: 7194 @ $2.78
======================
Current SP: $3.02
Market Value: $21,726
======================
Gain since play: $1,726
Dividend since play: $1,007
======================
Total gain/loss: $2,833

Roughly 14+% so far.

Very handy.... I must say... this play has beaten many other plays since the buy date which I posted around Feb? Cheers.

Note: nearly half of this money is dividend money, therefore, very effective for income tax.

 

[nulla nulla]

Telstra Dividend and NBN play
Initial Capital: $20,000
Shares Bought: 7194 @ $2.78
======================
Current SP: $3.02
Market Value: $21,726
======================
Gain since play: $1,726
Dividend since play: $1,007
======================
Total gain/loss: $2,833

Roughly 14+% so far.

Very handy.... I must say... this play has beaten many other plays since the buy date which I posted around Feb? Cheers.

Note: nearly half of this money is dividend money, therefore, very effective for income tax.

Given the length of time you have held these , don't forget your franking credits..

 

[BrightGreenGlow]

Yep that's right nulla, add another $200+ there. This has come as the market has been depressed through May and April. I don't suggest that this run will continue without hiccups but given the NBN is approved by end October I dont see why there wouldn't be another 30-40c added on the nearing of this announcement..... if all things go smooth. I don't think Labor can handle a NBN F-up now.

 

[Muschu]

A stock that is becoming interesting, imo, for the first time in a long time....

 

[nulla nulla]

At this point, imo, you would have to ask yourself "if you are not on, have you left your run too late?" A meteoric rise pushing to $3.06 before falling back in the close. Can it sustain this rate or is it due for a retrace? DYOR, goodluck.

 

[nulla nulla]

Seven (7) days on and it looks like tls is trying to break though the upper channel bar and move on to $3.20 or (dare I say it ) $3.36.

Then of course the ACCC could put the kybosh on the Foxtel (50% Telstra owned) take-over of Austral which could see the price of tls slump to a reasonable low risk entry point (IMO). As always DYOR.

 

[alexandro]

Finally broke above 3.06 after dicking around a while (a bullish rectangle). A good candlestick formation on decent volume. There will be more coming. On its way to close the gap in the chart between 3.06 and 3.25 left there in August 2010 when it did the one day step drop owing to profit downgrade. So will trade that gap all the way up to 3.25. The trend is our friend.

 

[drsmith]

NBN Co chairman Harrison Young has revealed the complex $11 billion deal between Telstra and NBN Co on the National Broadband Network will be completed next week, the Australian Financial Review has reported.

http://www.businessspectator.com.au...-to-deal-report-pd20110607-HL9KR?OpenDocument

 

[BrightGreenGlow]

Feels great to have backed myself and kept buying TLS knowing how much their service has changed and how their sales are up just from a personal level. This is obviously due to the NBN news but very deserving.

 

[alexandro]

No need to worry. Just a pull-back. Higher highs will follow. See it as another chance to get in.

 

[BrightGreenGlow]

Alexando.... this will help.

ART OF A STORY IN THE AUSTRALIAN BUSINESS, WITH THE WALL ST JOURNAL >
Telstra negotiates NBN break fee
June 13, 2011 12:00AM

TELSTRA'S $9 billion deal with the NBN Co could be settled as early as this week and will include break fees that could be worth more than $1 billion to protect shareholders should the $36bn rollout be abandoned or substantially revised in the future.
The Australian can reveal that the landmark deal -- first mooted almost a year ago when Telstra and the NBN Co signed the non-binding heads of agreement -- will include break fees that would not kick in immediately, but at the point where the telco has spent money on the deal.
It would be based on a percentage of the network build.
The market has been expecting that Telstra would push for such protections in the event that the deal with NBN Co cannot be delivered.
The break fees could be enormous. In a recent note, Macquarie Equities Research said they expected "material" break fees either via a nominal figure or through the structuring of take-or-pay arrangements that are often used in coal supply deals, energy purchase agreements and to access infrastructure facilities.
Deutsche Bank analysts estimate that a break fee could be worth between $1bn and $5bn, or between 10 per cent and 55 per cent of the value of the payments to Telstra under the $9bn deal.

Telstra's share price has recently rallied, despite the structural separation into its wholesale and retail arms that paves the way for the NBN rollout.
The share price has risen this year from lows of $2.60 in mid-March to close above $3 last week, suggesting that investors have started re-rating the stock in the expectation the deal with NBN Co is close to being .
The federal opposition has maintained it would scale back the project, likely to include a cheaper fibre-to-the-curb proposal, which has further complicated the already drawn-out talks for the deal.

Last week, NBN Co chairman Harrison Young told an AICD luncheon in Melbourne that he expected the deal would be concluded in "about a week".
But details of the deal -- including protections for shareholders in the event that the NBN changes

I'm focusing on the "maybe this week" bit.

 

[LRG]

TLS has been holding up exceptionly well thru this current panic selling on world markets.

Was hoping it would dip below 3 bucks to pick up some more - but no it is holding up so well - amazing.

where will it go in a few days/weeks when sentiment is back to positive 3.50ish???

 

[BrightGreenGlow]

Hey guys... and TLS holders.. I have read a few articles today (news.com.au and theaust.com.au) that seem to suggest a NBN deal will be out as soon as this week and possibly tomorrow. Should be a big week for the holders... I'm looking at offloading around 50% of my holding if the price jumps to say $3.20 area.. this could well be on the cards due to broker's valuations and realistically maybe even near $3.45ish... who knows but ill be watching and trigger clicker ready...

Don't know if I could sell more due to that very juicy tax friendly divy coming up very soon too.

 

[Bintang]

Hey guys... and TLS holders.. I have read a few articles today (news.com.au and theaust.com.au) that seem to suggest a NBN deal will be out as soon as this week and possibly tomorrow. Should be a big week for the holders... I'm looking at offloading around 50% of my holding if the price jumps to say $3.20 area.. this could well be on the cards due to broker's valuations and realistically maybe even near $3.45ish... who knows but ill be watching and trigger clicker ready...

Don't know if I could sell more due to that very juicy tax friendly divy coming up very soon too.

Well it closed down 7cents today on the 'good news'. Gone completely in the opposite direction. Why?

 

[drsmith]

Well it closed down 7cents today on the 'good news'. Gone completely in the opposite direction. Why?

Because, the 'good news' was broadcast well beforehand and hence allready factored into the share price.

 

[nulla nulla]

The key to the retrace in my opinion was the statement by Thodey that the benefits of the signing of the deal would not materialise in the 2012 P&L. Market was hoping to see the revenue come on stream earlier.

 

[Boggo]

Nice chart action for those with a shorting plan in place.

(click to expand)

 

[BrightGreenGlow]

Well, wasn't I wrong about the latest movement.... sellers are very fickle. I'll still hold and buy buy is it does into the low $2.8 to get in for that divy again and also the ever stronger customer base.

 

[Boggo]

... sellers are very fickle.

And very predictable too sometimes, price just hit 2.87, a potential support area around 2.86 to 2.87.

2.83 to 2.80 is a possible next hesitation/stop if this does not hold, one step at a time.

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