ASX Shares Telstra Shares (TLS)

http://imagesignal.commsec.com.au/d...nZXNpZ25hbC9lcnJvcnBhZ2VzL3BkZmRlbGF5ZWQuanNw

Quote..

Telstra also reaffirmed it expects its FY18 total dividend to be 22 cents per share fully franked including ordinary and special, in accordance with its dividend policy announced in August 20173 and its capital management framework

 

Telstra below 3 pesos. Market sentiment dictates price and TLS is on the nose.

10 year snapshot:



pinkboy

 

Most TLS investors know full well when it goes below $$3.00 that in the long run the underlying economics will sort itself out for any short term price fluctuations..imho..

 

I have averaged down five times already!

It will bounce back right?

 

A few people I talk too think it's value between $2.70-$2.80 range ,and it's no surprise to me this will occur from time to time,i have tls for a long time and the high and lows are not that important..imho..

 

Isn't there an old saying about the market can stay wrong longer than you can stay solvent or similar?
Look on the bright side, if they are paying 22c, each time you average down the yield is getting better.
PS. It's getting interesting to me too

 

Market expectation is that 22cps dividend not supported post fy20. More like 15cps. As Consensus seems to be TLS is ex-growth floor may be around 250cps.

 

I have averaged it down twice, net loss of 20% till date, would hold on n see if I would avg it down further
Holding period 10 years + so looking at the events as buying opportunity

 

My view TPM will displace TLS in a decade if you want Telco TPM is the future

 

TLS needs to slash costs and replace management that has a clue about how to run a telco business in a competitive world.

They have the largest and best network, have the biggest market share. What they forgot is at the end of the day the service they provide is a commodity and therefore for management to expect people to pay a huge premium for their services is just wrong and competition is going to eventually eat into their market share.

Unless they become more competitive the likes of TPG that claim to be the lowest cost producer will keep increasing their market share at expense of TLS.

Cheers,
Oracle.

 

Yeah, I dont have a view on TLS any more.......just sharing what I am seeing around consensus on sustainability of dividend.

 

I guess they are the victim of their own success... just like Nokia. This high dividend expectations from its investors kept it from innovation.

Telecom is a dying field anyway. Software is eating up their share.

 

huh?
how is the software going to beam data or their service to your device? over gum trees?
Data infrastructure is more critical than ever and that consist of
Fibre backbone, cable links to oversea, Towers etc ..

TLS dying got nothing to do with software, they are a Telco infrastructure business
they just like any other business, bad management, not keeping up the competition and high cost is its downfall

TLS is what you call a vertical integrated Telco, they provide infrastructure as well as selling services to mass consumers.
Vocus before M2 merger is what you called a pure Infrastructure Telco business, they just build infrastructure, fibre link and optical link and lease out to other people
before that there is a business called PIPE that made good money, which does the same thing, PIPE got taken over by TPM some years ago

As you can see there are more demand now than ever for Telco Data Infrastructure and it will just keep growing and growing

 

No, infrastructure is just part of their business. services they offer on top of it (or any other telco) is ripe for disruption.

i agree with you about the infrastructure requirements for telecom but thats not a huge requirement.

 

They need to improve their staff efficiency. They are functioning in commercial world with government attitude.
It does mean they have lots of room to improve though

 

Sorry I don't understand, how providing data infrastructure via mobile phone or NBN get disrupted unless there is a new way of doing things?

TPM taking their market share and doing a better job proving similar service is not really a disruption, it just a better business that utilising similar Infra to TLS, unless that what you mean by disruptions.

Online shop disrupt brick and mortal because they find a new way of doing the same thing
ie do away with shop front, use a courier to get good to your house and their register is online
and integrate into their logistics no register person.

Lot of market commentators use the word disruptions for a same business doing a better job but that is not disruptions

 

read my message again ...

"No, infrastructure is just part of their business. services they offer on top of it (or any other telco) is ripe for disruption."

 

I
Wouldn’t be interested in buying until stock hits $2.50. And then I’d still be cautious

 

I like Telstra and I use their services and appreciate the excellent customer service over the competition when I actually need to speak to a human. That's my experience anyhow.
Now every time I read about Telstra there's no one from the company talking about how they will start making money. When's the last time someone mentioned a game plan, a strategy, a method to the madness to make things better than great? I have read nothing but negative news and that's also coming from Telstra themselves, so why are people buying stocks? If they don't now how to move forward why would you invest into a company that doesn't know what to do? Is there a bigger issue that we aren't aware of as yet?

 

So what going to replace the services they provide? mobile data, fix internet, wireless internet?
Phone call and stuff haven't been part of their finances for a few years now, it all about data and internet services if someone going to disrupt that what are they replacing it with?