Australian (ASX) Stock Market Forum

TLS - Telstra Corporation

Highest close today since March 2005:eek:

TLLSs.gif
 
Most peoples favourite dividend stock Telstra (ASX: TLS), is amassing a significant lump of cash that could find its way into shareholders pockets. Not surprisingly, income-hungry investors are salivating at the thought. Earlier this week, the telco announced it was selling 70% of its Sensis business for $454 million. That’s chickenfeed for Telstra, but when you add it to other recent asset sales, plus an expected $4.6 billion or more in free cash flow in 2014, you’re looking at a very decent lump of change.

Expectations are that the telecom giant has earmarked the cash for capital management purposes, which could include a higher dividend, a special, one-off dividend or a share buyback. CEO David Thodey is reported as saying that he is conscious that shareholders would appreciate a return in dividends, which could mean a lovely bonus for Telstra shareholders this year.

Lets wait and see!!
 
Do you see Telstra having enough franking credits? Any other time it is suggested it seems it is the issue. Maybe a share buyback.
 
Most peoples favourite dividend stock Telstra (ASX: TLS), is amassing a significant lump of cash that could find its way into shareholders pockets. Not surprisingly, income-hungry investors are salivating at the thought. Earlier this week, the telco announced it was selling 70% of its Sensis business for $454 million. That’s chickenfeed for Telstra, but when you add it to other recent asset sales, plus an expected $4.6 billion or more in free cash flow in 2014, you’re looking at a very decent lump of change.

Expectations are that the telecom giant has earmarked the cash for capital management purposes, which could include a higher dividend, a special, one-off dividend or a share buyback. CEO David Thodey is reported as saying that he is conscious that shareholders would appreciate a return in dividends, which could mean a lovely bonus for Telstra shareholders this year.

Lets wait and see!!

That's useful information for anyone considering a short. They might be right but if you were shorting with say a CFD you might be up for a special dividend which would be unfortunate to say the least.
 
Most peoples favourite dividend stock Telstra (ASX: TLS), is amassing a significant lump of cash that could find its way into shareholders pockets. Not surprisingly, income-hungry investors are salivating at the thought. Earlier this week, the telco announced it was selling 70% of its Sensis business for $454 million. That’s chickenfeed for Telstra, but when you add it to other recent asset sales, plus an expected $4.6 billion or more in free cash flow in 2014, you’re looking at a very decent lump of change.

Expectations are that the telecom giant has earmarked the cash for capital management purposes, which could include a higher dividend, a special, one-off dividend or a share buyback. CEO David Thodey is reported as saying that he is conscious that shareholders would appreciate a return in dividends, which could mean a lovely bonus for Telstra shareholders this year.

Lets wait and see!!

The Motley Fool by any chance?

http://www.fool.com.au/2014/01/15/market-crash-alert-2014-style/
 
Telstra: Weekending Friday 07 February 2014

The four year chart shows Telstra has enjoyed a stellar recovery since bottoming out at $2.55 in November 2010. At that point the annual dividend of $0.28 fully franked ($0.40. before tax) represented a gross yield of 15.68%. An attractive rate of return by anyone's standards. Even more attractive for self funded retirees looking for high yield and the prospects of a tax return for the fully franked component or part thereof. At the recent peak of $5.29 the fully franked dividend of $0.28 ($0.40 before tax) dropped to a gross yield rate of 7.56%.

tls 2014-02-07 4yr.png

No doubt over the past three and a half years the share price has been driven upwards as the market embraced the changes introduced by Mr Thodey and and the deal struck with the Labor Government for the roll out of the NBN. The share price rise faltered as the market factored in the change of Government and proposed changes to the NBN rollout. Also network advantages Telstra enjoyed over Optus and Vodaphone have started to close with the rollout of competing G4 mobile networks.

Telstra continues to enhance value by unloading non performing assets and freeing up resources for investment in opportunities but the question now facing the market is whether there is enough growth opportunity left in the near future to support continued investment in Telstra and can Telstra maintain the fully franked dividend of $0.28? At this point the market is looking to see what Telstra will do with the capital it has generated from the sale of Sensis and some asian assets. Will Telstra retire debt, do a special div or commence a share buy back or a combination of these options?

The share price looks as if it has peaked and has entered another volatile sideways and possibly downward cycle. The Relative Strength Index chart shows that the share price has recently gapped down on increasing daily volumes. There appears to be a contest at the moment between the optimists expecting a bounce and the pessimists shorting for further falls.

tls 2014-02-07 rsi.png

The MACD chart also shows the moving average is clearly in a down trend and the gap to the recent share price is widening.

tls 2014-02-07 macd.png

To me, until we get some clear direction from the Government in respect of the NBN rollout and Telstra as to what they will do with there recent capital realizations, the support levels at $4.92, $4.89 and $4.77 appear likely to be tested in the near future. As always do your own research and good luck. :)
 
thanks for your comprehensive analysis, the reporting period is on 13 Feb will be interesting to see where the stock goes, i got my stop at $5.72
 
Is the increased interim dividence of 14.5 cents messing with your shorting?

I noticed the free cashflow is down from 2.2 billion to 1.7 billion.
 
At this stage the Telstra share price has bounced off the lower channel bar, I guess we will have to wait a few days to see how the market digests the report and the extra $0.005c dividend.


tls 2014-02-14.png

Not a bad recovery, 4% for the week.
 
Re: TLS - Telstra Corporationh

Projections based on the weekly chart below has a potential target area in the range 5.30 to 5.50 but I don't expect it to get there without a few minor corrections along the way.

That was from over a year ago on here
https://www.aussiestockforums.com/f...t=4270&page=85&p=784457&viewfull=1#post784457

Gone through that level nicely. I hold instalment warrant TLSIOZ, noticed a significant buy on that warrant today.
TLS has been a good performer since 2011.
 
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