SPK- Spark NZ (TELCO)

[bull....]

https://www.nzx.com/companies/SPK/announcements/302756

taking back control of there retail stores - good move, telstra heading that way too by the look of things

[Hoop]

Hi Tech company reconnecting with its customers via physical brick and mortar reality...Hmmm really!!!
oh well..best of luck with that
With their turn back in time strategy..I suggest a good product for their shops

[bull....]

Hi Tech company reconnecting with its customers via physical brick and mortar reality...Hmmm really!!!
oh well..best of luck with that
With their turn back in time strategy..I suggest a good product for their shops

probably relisation you need online and physical stores - hence the big amazon takeover of whole foods.

[Hoop]

probably relisation you need online and physical stores - hence the big amazon takeover of whole foods.

Hmmm maybe Bull...Time will tell..eh

[Zaphod]

From a business perspective the stores serve a valuable role by providing hands on experience with new potential handsets, support, and training services.

[Nasi Goreng]

Can anyone provide any insight as to why Spark is currently in an uptrend and Telstra is currently in a down trend? Spark PE is 17.6, Telstra is 9.7.

There must be a few big reasons for this... May be more competition in Oz? I don't really follow either company but it looks interesting that 2 dominant players in their own markets can have such different SP action.

[peat]

Apart from being in different countries with (currently ) quite different economic trajectories, one needs to recognise that (despite their similar histories) they are quite different companies. Telstra might be better compared with Spark and Chorus combined given that TLS is doing the NBN (fibre) rollout in Australia (whereas SPK has no involvement in that here in NZ)
Also, Spark seems to be making the transition to a content provider faster than TLS - Im not even sure if TLS has a content component (perhaps shareholdings)
TLS does have some massive cash flow positives from the govt guarantees it obtained from the Australian government for doing the NBN but it hasnt yet proved how it will fill those cash flow/revenue gaps once that is all completed.
Personlly I think TLS has been oversold

[bull....]

Can anyone provide any insight as to why Spark is currently in an uptrend and Telstra is currently in a down trend? Spark PE is 17.6, Telstra is 9.7.

There must be a few big reasons for this... May be more competition in Oz? I don't really follow either company but it looks interesting that 2 dominant players in their own markets can have such different SP action.

telstra facing more revenue headwinds from NBN rollout - TPG entering mobile space , more competitors with deeper pockets than in NZ.

[Nasi Goreng]

telstra facing more revenue headwinds from NBN rollout - TPG entering mobile space , more competitors with deeper pockets than in NZ.

Thanks for your thoughts. Makes you wonder if Spark are invulnerable to these things. At 18 x earnings, there is a fair amount of optimism this is not the case.

The 5 year TLS chart tells a big story, it looks like negative sentiment was behind them until August 2015 when the tide turned.

[Major von Tempsky]

I think you guys need to look somewhat wider - I was curious on the same point a few years ago but I looked somewhat wider than just Australia, and if you do you should find a number of telcos on rather lower P/E's in the US for example.