TEL (Telecom NZ Ltd)

[moe]

What about TELs weighting in the NZSX50, surely this must change?

[whatsup]

Read the Sunday papers on TEL.The real facts is that Telecom has the "high"ground -customer base IHUG is broke,its parent has been delisted/suspended awaiting its financial disclosure Telstra has its hands full in Aust Vodophone will decide that NZ is too small a market in NZ, Call pluss is a bit player ,no phone company will invest the necessary cash to make a meaningfull challenge on TEL.imho I think that this has been a huge over reaction/sell off when once the dust clears the market will realise this and buy back into TEL big time as Tel will still,
1 provide the majority of the necessary services
2 make most of the money from its customer base which it will fight tooth and nail to retain.

[Gryffyn]

kinda agree with wassup. also look where the revenues are! unbundling will only effect a portion of the vast array of services that TEL are in. If they offload AAPTA then I'd rate them a strong buy at today's prices.

What will happen? A lot of crap will be posted on ST about how much money people are making diving in and out of TEL and people will disemble furiously about their TEL losses to date.

Disc: none

[pimpit]

only thing that will happen is sp will drift sideways making not much gain.

[Bel]

I just dont see any investment potential within telecom. I just see tel either stagnating of continure a long downtrend. (after the dead cat bounce).
Though i can understand traders jumping in and out.

[craic]

There once was a poster, a few years back, who made a living getting in and out of Telecom three or four times a year. I can't remember who and I wonder where he is now? I do not hold TEL but I will seriously look at it if the doomsayers drive it down a bit further. It would be a steal at 400cps. or maybe as high as 415cps.

[winner69]

quote:Originally posted by moe

What about TELs weighting in the NZSX50, surely this must change?

With some other stocks (of some weight) disappearing from the NX50 TEAL weighting could even go up .... in spite of the latest fall

[minimoke]

Firstly consumers of TEL competitors will be disappointed when they learn that “lightning speed” broadband is not that fast after all.

Next TEL will stop / slow down investing in line/exchange maintenance/upgrades.

The next term Labour govt will “nationalise” the Lines part of TEL – a replication of the railway lines.

[Gryffyn]

Just watch for VoIP to be de-prioritised at the exchanges.

[Halebop]

quote:Originally posted by Gryffyn

Just watch for VoIP to be de-prioritised at the exchanges.

Assuming the unbundled loop is just a "dumb" network this shouldn't happen. Even if TEL wanted to their competitors certainly wouldn't be blocking Skype ports.

As an aside, I've had heaps of problems with sound quality and connectivity on Skype the last 2 or 3 weeks. I've wondered if TEL were doing this right now.