Once all the idiots have sold out the better things will be for Telecom. Telecom is not the company it was 4 years ago. It is a lean mean telco run by a very smart CEO that will continute to dominate the NZ landscape for many many many years to come.
Lets hope the investors bailing out at present are the idiots who only invested in the company for their dividend - greedy people who were only ever in it for a quick return. Those same people who pushed for Telecom to make big profits and caused the problems that are now the stumbling block the company is having to deal with.
Those buying shares now are the smart ones who realise that a bargain they are getting...
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Comment by grant_k, on 18-Sep-2008 12:19
"Those buying shares now are the smart ones who realise that a bargain they are getting..."
Negative points concerning Telecom at present:
- Dividend is slated to be cut next year
- There will be no Imputation Credits
- Net Profit is forecast to keep reducing for the next year or two
- Growth Prospects are minimal at best
If you have a long-term investment horizon then fine, you may view all the bad news as being priced in @ $2.70.
However, even though I have been watching the slide in Telecom's share price with interest, I believe there are far better places to invest your money at the present time.
Comment by Fraktul, on 19-Sep-2008 15:12
There are a lot of good bargains to be had at the moment with the current state of the stock markets, both locally and internationally. Whilst I would agree that TCNZ stocks look quite attractive currently there are also plenty of other stocks which deserve consideration also. As always research is the key.
Comment by grant_k, on 30-Sep-2008 10:18
Telecom shares are now down to $2.60 i.e. another 18 cent drop today
$2.70 doesn't look like such a bargain anymore...
Comment by John Tiler, on 16-Oct-2008 20:49
now its $2.23! Does $2.70 sound good??!!
Comment by bjauck, on 30-Sep-2009 11:17
The history of Telecom NZ is a disaster for nz shareholders and for NZ. It was privatised as a monopoly by the NZGovernment and sold at a knockdown price to American interests. The Americans made a mighty fine profit by flipping it to Kiwi mum and dad shareholders. It became the most widely held NZ company. Since then the government has chipped away at its profitability in favour of mostly overseas run and controlled competing telcos.
Is it a wonder that Kiwis put their money into tax favoured rental housing when the returns from the largest and most widely held NZ commpany have been ambushed by the NZG.
Oh and BTW the unbundling of the loop has resulted in .....lower data caps for a higher price. Granted speeds may be slightly improved for some. But what can you do with it when data is so limited. Lightening fast for three days in a month then throttled to dial up speed!