TEL

[Bobby]

Well - Telecom finally pays a 7.5 cent divvy - the crowd goes wild. Long awaited and probably much overdue - the growth company finally becomes the cash cow.

[Risk]

the crowd goes wild???
20 million turnover and down 1.5%

[trendy]

Maybe it's the concern about having to fork out $14m

http://www.stuff.co.nz/stuff/0,2106,2899704a13,00.html

or maybe it is the normal Friday selldown. [8D]

[belgarion]

Methinks a small top up would be in order ... ;)

[trendy]

To late price heading up :(

[neopole]

me too belgy.
but a bit bigger than small.

[lucky]

Is Tel a buy . pe 14 ,yield 5.4%, price down last couple of days with what looks like overseas selling. Maybe cash payouts in the future ?? unbundling out of the way...what you think ????

[lucky]

Huge trade of 20 mill thru at the close...

[Burgerbun]

Yip lucky, just over 1% of Telecom in one trade...was a monster hey.

Certainly the NZD trend has an impact on TEL direction.

The exchange rate gains of late have outperformed the shareprice.

If it heads under 60c and holds then we could see further weakness.


However, not a demanding multiple and a great div by Int standards.

[Risk]

interesting trade...any ideas who was the seller/buyer?
considering the size of the trade, it didnt seemt to alter the shareprice by much...there must be a keen buyer out there...and an equally keen seller[:p]

[jrbl]

I wonder how the market will react when TEL confirms Gen-i purchase...interesting space for them to move into, Telstra looking at similar move and IBM have bought a network specialist just recently. Telco's buying IT & IT buying into Telco markets, I watch with interest..

[TheBossMan]

Has the Gen-I sale gone through? They're a good systems integrator as well and it fits TEL's Advanced Solutions biz model.

[barney]

With TEL getting into a position where this time next year it will be flush with surplus capital and the fact that it will still be in a virtual monopoly situation thanks to the unbundling decision what's the chances of someone making a bid for half the company?(or even more.)
At the moment there is no dominant shareholder and the shareholder base has grown especially in Australia where institutions have brought up shares over the last twelve months.IT could make a nice cash cow for someone.

[stephen]

I have seen many, many IT consulting firms grow by aquisition. It is very hard to get right. Cultures clash, customer relations and account management are disrupted. Almost always, some of the "stars" depart from the acquired firm, and sometimes they take their clients with them. Arguably this was one of the things that got Advantage into trouble. You end up with a firm that is less than the sum of its parts, having incurred large costs to achieve it.

The Gen-i deal is still just a rumour at this stage.

[wsheridan]

This is the most positive news we've had on TEL all year [}:)]:D

http://stockwatch.nzherald.co.nz/announcementdetail.asp?GMC=100&ArticleId=100705

[brother coy]

donts ya just luv it suckers hahahahahaah who luvs ya baby[:X][:X][:X]

[Lawso]

So he's back :( [V]

[foodee]

TEL running hard with a good head of steam and PE only just over 15. Is there more to come[?]

[brother coy]

ya sucker shes goings hard abouts nows shoulds see nicely more luvly gains ahhahaa

[donnie]

this from the SMH

Big payout coming from Telecom NZ
By Colin Kruger
August 2, 2004


Telecom Corp of New Zealand shares are on track to reach a four-year high as the market factors in higher dividends when the phone company announces its full-year results this week.

The stock, which is listed on both the New Zealand and Australian stock exchanges, gained 3c on Friday to close at $5.54, its highest since mid-August 2000.

The company has flagged a change to its dividend policy at the announcement of its full-year result on Thursday, and brokers have forecast an increase in the ordinary dividend payout ratio from 70 per cent to 80 per cent. This will lift the quarterly dividend to NZ8.5c (7.7c) a share.

Analysts are also punting on Telecom NZ announcing a series of special dividends, starting from the second half of this financial year.

According to Credit Suisse First Boston, Telecom NZ could pay out its entire net profit and still retain its A credit rating, which the company indicated was the most efficient use of its capital structure.

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"We believe that they will take the payout ratio to near 100 per cent in the medium term," said CSFB telecom analyst Guy Hallwright.

Telecom NZ's chief executive, Theresa Gattung, told the Herald last week that she was comfortable with consensus forecasts predicting a $NZ770 million net profit for the 2003-04.

Telecom NZ's Australian subsidiary AAPT, on the other hand, is not expected to offer any joy for its parent despite internal signs that the operation is turning the corner.

"Telecom's Australian operations continue to be rebuilt, although the market will be expecting some indications of a return to revenue growth and margin expansion within the next two quarters," Mr Hallwright said.

AAPT's revenues are expected to be up slightly on a weak result for the previous fourth quarter.

The subsidiary is also expected to be the second Australian telecom to offer 3G services in the market with the company understood to be close to reaching an agreement with Hutchison Telecom's 3. Telecom NZ acquired a 20 per cent stake in 3 for $400 million in 2001.

Citigroup has a "buy" recommendation on the stock with a price target of $5.85, while CSFB has a "neutral" recommendation with a price target of $5.51.

[foodee]

Pleasant read indeed and the CEO is comfortable with 770mil which means there is a bit more.[:p]

[foodee]

Not quite 770m, but looking good and increase div.[:p]

[Lawso]

The market is full of puzzles and one that puzzles me is why people would jump in immediately after the result/div announcement and push the price up as high as 622. The signals have been plain to see for weeks. Why didn't they buy then? Or even yesterday? No doubt plenty of today's sellers are opening the Bolly after buying in recent weeks for a surefire profit.
Happy to say I made a couple more buys last year at under $5. But let's not forget that some of us were buying TEL in the late 90s for nearly $9. That was before Deane's headstrong Aussie splurge.

[blockhead]

Yep, same with NOG Lawso, as it gets closer to drilling depth being reached the price will rise and then it will drop the day or so before as they all get the wind up and exit. Wise punters got in years ago ;)
What happens after target depth is reached is another story !!

Blockhead

[dingdong]

Teresa Gattung, we are incredibly unworthy that your no-brainer decision to raise dividends has helped raise Telecom's price and of course made you very rich with options and a million in bonuses. Any monkey could have made that decision and profited handsomely yet somehow it was you.

Us mere unworthy peasants salute thee, o Hound of the Baskervilles, for your monkey work and your ability to personally milk the Telecom dividend gravy train.

[wsheridan]

quote:Originally posted by Lawso

The market is full of puzzles and one that puzzles me is why people would jump in immediately after the result/div announcement and push the price up as high as 622. The signals have been plain to see for weeks. Why didn't they buy then? Or even yesterday? No doubt plenty of today's sellers are opening the Bolly after buying in recent weeks for a surefire profit.
Happy to say I made a couple more buys last year at under $5. But let's not forget that some of us were buying TEL in the late 90s for nearly $9. That was before Deane's headstrong Aussie splurge.



It's because some of us know to buy on rumour and sell on fact. If everyone thought the same we'd never make money :D

[Placebo]

More than weeks -- months. And it wasn't a rumour either, Telecom said months ago it was going to raise its dividend. They couldn't have given a clearer signal.

Agree on the puzzle though, why people didn't buy then (when it was around 560) is curious.

Funny old beast, the market.[:o)]

[belgarion]

Yes indeed ... why didn't sheeple buy when it was sub $5 before Christmas ...

... 20% Cap Gain and some divies ... nice.

See ya.:)