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TLS - Telstra Corporation

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Klogg said:
Not to shoot you down, but there are few people on these forums that would be better placed to answer your question. And from what I've read, he's just trying to promote thinking for one's self...
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Absolutely my impression also.

I'd say ten out of ten to McLovin for tolerance and patience, not to mention quality of information offered.
I wouldn't have been so generous in the circumstances.
 
For what's its worth...any company wanting access to the NBN will have to pay annual fees of around 25 million (from memory), making it rather cost prohibiting for new entrants, so with that basic cost...size matters and customer base MATTERS.

After all's said and done there will be 4 to 5 major players...Telstra will be #1
 
Klogg said:
Ouch! At 25years of age, I have quite the cognac collection, haha.
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My grandmother used to have her friends over to play cards and they'd bring a bottle of Chateau Tanunda so that's probably where my opinion is formed.
 
It's annoying me that the NBN is probably going to be run at a massive loss and creating a big debt to disguise costs and make it look like users are getting a better deal from the new structure. When in fact they are just paying for it through inevitable taxes. All this on top of the massive build cost.

I haven't actually seen any figures on that.
 
Announcement:

Dividend guidance 28c for 11/12 and 12/13 confirmed.

Free cash flow over the next three years (including NBN payments) expected to be $2-3 billion. This is subject to NBN roll-out.

Preference for capital management is to pay fully franked dividends but there won't be enough franking credits to increase dividends until 2014.
 
Good announcement. As tinhat said, they have basically said that they will have an additional $2-3b in FCF over the next three years. While they could do an on-market buy-back the shareholders they have spoken to (in all likelihood ff divvie hungry superfunds) have said they would prefer an increase in FF dividends. This won't occur until 2014.

The change in the tone of management is palpable to the combative agressive tone TLS was taking 5 years ago. It's easier to swim with the current than against it.

Interestingly, Thodey mentioned that Frank Blount (TLS CEO back in the 90's) had estimated that TLS would receive no copper wire voice revenue by 2010.

TLS also reconfirmed that a change of government would not affect the company wrt to cash flow from the NBN.
 
The irrational push down on opening after the release of the Investor Update was hard to understand or ignore. I felt the report was positive and didn't warrant the drop in opening price. A quick entry at $3.31 shortly after open with the sell listed immediatley for $3.39 saw one of the easiest 2.4% gains by close of trade for a long time.
 

Yeah it was puzzling. I can only surmise that some people had taken positions based on a buyback being announced. When the catalyst didn't materialise, they closed out their positions.
 
McLovin said:
Yeah it was puzzling. I can only surmise that some people had taken positions based on a buyback being announced. When the catalyst didn't materialise, they closed out their positions.
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I looked at the price after hearing the announcement this morning and was quite surprised too. $3.33 or less represents 12% or more yield including franking credits. Such a nice number.
 

And the best bit is, in 18 months time people will still be telling us what a dog it is. It's a conservative group of managers who seem to have their eyes on the ball. They've telegraphed that the dividend will be maintained and then will rise in 2014.
 
Looks like I've missed the boat on TLS, would have made $50k if I'd jumped in a few weeks ago.
 
MrBurns said:
Looks like I've missed the boat on TLS, would have made $50k if I'd jumped in a few weeks ago.
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Mr Burns, I don't mean this in an offensive way but I think you're best not to invest in shares.

You're indecisiveness and inability to make an independent choice regarding whether or not to invest is clear from many of your posts on this forum. How will you know when to sell? How will you deal with an unexpected news item?

Might be best to let someone else handle your money. Could guarantee that a large proportion of your stock standard fund managers are invested in Telstra anyway.
 

I think you're right, now back in a TD.........until I see an opportunity that even I can recognise.
All the publicity about TLS lately, share dividend guaranteed till 2014 loads of cash etc have done this, I was hesitant.....never mind.
 
MrBurns said:
Looks like I've missed the boat on TLS, would have made $50k if I'd jumped in a few weeks ago.
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Wow -- Making $50k on a stock that has gone up 20c in 3 weeks ? My calculation is 250,000 shares... 0r over $800k....
 
MrBurns said:
Looks like I've missed the boat on TLS, would have made $50k if I'd jumped in a few weeks ago.
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Ah, the joy of hindsight.
Your remark above, Burnsie, goes to the correctness of Sammy's advice imo.

Muschu said:
Wow -- Making $50k on a stock that has gone up 20c in 3 weeks ? My calculation is 250,000 shares... 0r over $800k....
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Hopefully Mr Burns will tell us he wasn't seriously considering any such very considerable amount in a single company.
 
Julia said:
Ah, the joy of hindsight.
Your remark above, Burnsie, goes to the correctness of Sammy's advice imo.


Hopefully Mr Burns will tell us he wasn't seriously considering any such very considerable amount in a single company.
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Having said that Julia, TLS is our biggest hold since the chart started trending up from under $3. But of course all our eggs are not in the TLS basket.
 
Julia said:
Ah, the joy of hindsight.
Your remark above, Burnsie, goes to the correctness of Sammy's advice imo.


Hopefully Mr Burns will tell us he wasn't seriously considering any such very considerable amount in a single company.
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I was a about to, the signs all looked good PLUS interest rates are about to go down so watch it rise again.
 
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