TLS - Telstra

[waikare]

BUY BACK

I have been in the market since 1986, and in that time have read and studied numerous documents, and on occasion sought second opinion, and clarification, but the current Telstra Share Buy Back booklet would have to rank as probably the most confusing I have come across.
Just glancing at the tender form gave me the impression that it was designed by an ex IRD executive and for the booklet, I not going to bother trying work out what the advantages or disadvantages are for me.
So in this instance I intend to biff it, as the Buy Back is entirely voluntary.

However they do advise as this document is important, and if you do not understand it you should consult your professional adviser, and give a website and phone number should you require further information.

[Snoopy]

BUY BACK

I have been in the market since 1986, and in that time have read and studied numerous documents, and on occasion sought second opinion, and clarification, but the current Telstra Share Buy Back booklet would have to rank as probably the most confusing I have come across.
Just glancing at the tender form gave me the impression that it was designed by an ex IRD executive and for the booklet, I not going to bother trying work out what the advantages or disadvantages are for me.
So in this instance I intend to biff it, as the Buy Back is entirely voluntary.

However they do advise as this document is important, and if you do not understand it you should consult your professional adviser, and give a website and phone number should you require further information.

Waikare, the buyback is designed for Australian investors as a way to best return capital to them to minimise their own capital gains tax requirements. In New Zealand any returns from this scheme are likely fully taxable. This is not a good deal for NZ shareholders. What ever you do, do not participate in this buyback. Your returns will be far better if you just sold the equivalent amount of shares on market.

SNOOPY

discl: hold TLS

[sharer]

Waikare, the buyback is designed for Australian investors as a way to best return capital to them to minimise their own capital gains tax requirements. In New Zealand any returns from this scheme are likely fully taxable. This is not a good deal for NZ shareholders. What ever you do, do not participate in this buyback. Your returns will be far better if you just sold the equivalent amount of shares on market.
SNOOPY
discl: hold TLS

Precisely my opinion as well.
discl: also hold.

[NZSilver]

Who owns tls on the NZX< i guess its better than buying on the asx if you are in NZ. Good div yield! whats the deal with the div it is payed into nz bank accounts directly or an aud cheque

[ace5715]

Who owns tls on the NZX< i guess its better than buying on the asx if you are in NZ. Good div yield! whats the deal with the div it is payed into nz bank accounts directly or an aud cheque

Holding since the first Telstra float. They pay into NZ bank account, they have also just restarted the drp scheme.

[waikare]

Has any one else not as yet received the Dividend Statement for the payment that was due on 23 Sept 16, as I have elected DRP share have been allocated, but no statment

[Jerry]

Hi out there!
No one has had much to say about Telstra for about a year. The shares have come down and down. Now PE 11.58 and EPS 34c
Gross Div Yld 8.5%. Looks a bit tempting. Where's the elephant?

[JayRiggs]

Hi out there!
No one has had much to say about Telstra for about a year. The shares have come down and down. Now PE 11.58 and EPS 34c
Gross Div Yld 8.5%. Looks a bit tempting. Where's the elephant?

They will be cutting their dividend by 30% to 22c AUD next year.
So the gross yield going forward will be more like 6% at current prices.

[Jerry]

Ah! Thanks, Jay.

[peat]

Sure the divi will be cut, but also there is a future earnings hole as the NBN work completes and people disconnect from copper. Given the size of Telstra its quite a big hole. As in a billion or two.
Telstra are like Chorus and Spark combined , except unlike Spark they havent thrown off their legacy incumbent image by a brand change. So whether you rate them to fill those lost earnings is the big question in my view. Because unless they do that, the dividend will get cut further in the future (say early 2020's)