TPG - TPG Telecom

[Joe Blow]

TPG Telecom (TPM) was previously known as SP Telemedia (SOT).

For previous discussion of this company please see the SOT thread, which can be found here: https://www.aussiestockforums.com/forums/showthread.php?t=1382

 

[Jako]

I have recently taken a small position in this stock.

When the Cap Raising (to help finance the takeover of PWK )was announced they fell below the CR price so I took advantage of that and bought in.

They have been included into the ASX300 announced this week.

Good support in the last few days up from $1.40ish to $1.70 today.

May have further support after friday, when Pipeworks shareholders vote.

Hope it goes the right way..............

cheers.

 

[Jako]

Well the vote went OK, 94% voted for the buyout.

Now trading at around $1.95 or so, up 10+%

Will be have to see if they can hold the jump in price.

Maybe the entry into the ASX300 will keep the instos interested.

I tried putting both balance sheets together ( I know this can be misleading, but I wanted to see how it would look ) & came up with a price of $1.87 for this year ended, & $2.10 for first half next year.

This calculation could be way out as I dont know what other costs of bringing both companys together will be, or any savings they may make.

anyway I'll keep watching.

cheers

 

[Staggerlee]

I bought a very small amount of tpm when they were much cheaper, not knowing much about stocks i based my purchase on the fact that i like the company. Quality products at a decent price.
Since then i have bought more at a much higher price, wiping out my profit in the proccess.
I have been studying since i first purchased any and punching through these forums like theirs no tomorrow and now that i know a little more, im a little worried about this company.
Basically what i would like to ask is, what are your thoughts on tpg in the longterm?

 

[Garpal Gumnut]

I bought a very small amount of tpm when they were much cheaper, not knowing much about stocks i based my purchase on the fact that i like the company. Quality products at a decent price.
Since then i have bought more at a much higher price, wiping out my profit in the proccess.
I have been studying since i first purchased any and punching through these forums like theirs no tomorrow and now that i know a little more, im a little worried about this company.
Basically what i would like to ask is, what are your thoughts on tpg in the longterm?

It seems to get support between 1.40 and 1.50, which many folk must feel is good value, at the 50% fibonnaci level from its lows to highs.

Its generally in a downtrend though and presently looks a bit like a dog.

Having said that, it has bounced last week on some volume again at about 1.50/60. this occured close to the 38.2% fibonnaci retracement level.

Its also in a downward channel and until it breaks as I said above sideways or up out of this channel it may fall again.

It would be nice to see it move sideways for a while and then jump on an upward break. It does look as if it is in a downtrend though on the attached chart.

gg

 

[Jako]

TPM will shortly be included in the ASX200, with LGL being removed.

This may account for the rise in price over the last week or so.

 

[voigtstr]

Why such a dip today? The company announcment was positive wasnt it?
Or did I missread something?

 

[goosmurf]

EPS 7.6c, share price today $1.73, P/E of over 22 is pretty nuts compared to industry peers.

I've long been interested in TPG's business but have never seen a time when its price was reasonable against its earnings.

 

[voigtstr]

So is this the correction it had to have? is the stock price actually a reaction to the numbers in the announcment?

 

[rcm617]

So is this the correction it had to have? is the stock price actually a reaction to the numbers in the announcment?

The numbers are within their earnings guidance, however they are a bit lower than some broker predictions, hence the drop.

 

[polska]

i believe this is an overreaction, i'm think i am going to buy some of these, TPG is a great company, offering great prices, they are however gaining customers, but not too much more revenue due to these ultra competitive prices

 

[Jako]

There are some concerns within the market that a Price War is on between all the Telco & Internet suppliers.

Telstra have said it is their aim to grow market share & have begun advertising, cut price plans. This is a major change in Telstra's strategy, where they have previously prefered to go after the Top end of the market.

The worry is that margins will be squeezed & profitability will be compromised.

Time will tell.....

cheers

 

[polska]

i like tpg as a company, haven't bought it yet, but if they hit the <1.50 mark i will gladly take a punt, they surged only a few weeks ago to 2.00, they are subscribing more customers faster than any other providers

 

[matty77]

I guess the question is:

1. Are the customers they are subscribing long term AND do they pay their bills? We all know in the Telco industry its easier to get customers, but its a different thing to get good paying customers.

2. How will the NBN benifit or hinder TPG, is it going to help them or not?

 

[prawn_86]

Having a major ****fight with TPG at the moment.

Before i left for my trip i changed over to an email only account. Now i am back i wanted to go with them again but they say that i cant use my old (still active) TPG email and will need to pay a yearly fee to keep that email active. I asked them to waive this fee but even the supervisor wouldn't confirm it.

All their call centres go through to overseas and they never have any notes on their system so have to explain myself each time.

Bascially they are willing to lose out on >$600 pa in exchange for $30pa that it will cost me to keep the email active

 

[sinner]

Having a major ****fight with TPG at the moment.

Before i left for my trip i changed over to an email only account. Now i am back i wanted to go with them again but they say that i cant use my old (still active) TPG email and will need to pay a yearly fee to keep that email active. I asked them to waive this fee but even the supervisor wouldn't confirm it.

All their call centres go through to overseas and they never have any notes on their system so have to explain myself each time.

Bascially they are willing to lose out on >$600 pa in exchange for $30pa that it will cost me to keep the email active

Yep, I can confirm this is the sort of service you can expect from TPG when you have issues requiring servicedesk support. The quality of their DSL isn't even good compared to other providers.

Switched away and never looked back. Happy with Exetel, iiNet, Internode (all naked DSL) and Optus (FTTN) since then.

Having been a customer, I would never invest in this company.

 

[prawn_86]

Yep, I can confirm this is the sort of service you can expect from TPG when you have issues requiring servicedesk support. The quality of their DSL isn't even good compared to other providers.

Switched away and never looked back. Happy with Exetel, iiNet, Internode (all naked DSL) and Optus (FTTN) since then.

Having been a customer, I would never invest in this company.

Unfortunately i dont have very heavy usage, so the package they offer is the cheapest (and it obviously shows in their service)

 

[prawn_86]

Actually just looked at Exetel and they seem quite good. Might go with them instead

 

[sinner]

Unfortunately i dont have very heavy usage, so the package they offer is the cheapest (and it obviously shows in their service)

My usage isn't very high either but as an on-call technical engineer and occasional intraday trader, low latency is very important to me if I need to log into the data-center or want to take some hits in London when I get home.

One thing I liked a lot about iiNet when I was on DSL was that you could actually set your connection type on their website e.g. "I'm a gamer and want low latency" or "I'm a downloader and want high throughput" type options.

ISPs forced "usage" down Australian consumer throats, doesn't apply in most places in the world. So people here think they are paying for "gigabytes"...when I pay, I expect good uninterrupted service at near line latency. Personally, I don't care about gigabytes.

Actually just looked at Exetel and they seem quite good. Might go with them instead

As a prior customer I am very happy to recommend them for their service, speed and support.

 

[timestwo]

I will second/third etc.. that customer service is not the best. However, if you are looking for a generous download limit for a decent price I think that's where TPG has the upper hand. I've personally never had an issue with them, sometimes it depends on what area you are in and what exchange you are connected to.

In terms of share price, I've been keeping an eye out on them and they seemed to hover around the 1.3-1.4 mark.