TEL - Telecom New Zealand Ltd

[Bongo666]

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http://www.telecom.co.nz

Telecom Q3 results - condensed accounts.pdf

[Bongo666]

Originally posted by Bongo666, 21 April 2009

Once the shining light of New Zealand listed companies now Telecom New Zealand lies in some sort of regulatory and capital expenditure limbo as government decide what they want and Telecom decides how much money they want to make off customers.

What future lies ahead?

One is tempted to say that it cant get much worse for this company but I see things getting worse before any sort of turnaround.

The culture is still attack the customer and reactionary rather than on the front foot when it comes to competition.

A continued focus of marketing over services also drags on the bottom line.

Does anyone bar me think that Telecoms stock re-rating is more than a little overdone?

Still way more CAPEX to be done to prop up the ailing mobile business and out of date internet offering.

Wheres the beef in the share price rise?

[Bongo666]

Telecoms successful rollout of its "new" mobile network will be crucial to its future. If it goes wrong it will end its domination of the NZ telecoms market.

[Bongo666]

The new entrant in the mobile market(see attachment below), 2 degrees is going to put more pressure on Telecom to roll out their new GSM offering launching at the end of May. The only way they can compete to get customers is on price and to keep them on service, which wont be hard because both Telecom and Vodafone have awful service.

I am reminded though that third players have tried to break a number on monopolies and duopolies in this country and failed.

[Bongo666]

The rumblings over reorganising Telecom to allow the possibility that it could be taken over is a prospect that has been long coming. The "Kiwi Share" is a farce because the bulk of the company is now owned overseas anyway and what we have now is just window dressing. Time to move on!!

[Bongo666]

Talk of the "kiwishare" being reviewed is good news for Telecom investors, one reason, and it must be clear it is only one reason, that the share price languishes is that there is no takeover premium included in the share price. The Kiwishare stops the company from being taken over.

Might be a good time to buy some stock

[Bongo666]

The sub loop decision by the commerce commission has just been released. Should be a volatile day for the stock price today. (see attachments below for additional info)

[Bongo666]

Is this a good decision by the COM COM for TEL?

[Trader Girl]

Better result than expected. Got to watch out for that 2 degrees minnow though. Telecom will never forget what happened when they ignored Bellsouth.

[Trader Girl]

Looking at a sell soon after buying in at 2.28 last week...

[Share Trader]

Looking at a sell soon after buying in at 2.28 last week...

I wouldn't expect to soon. Plenty of negative news on this company about now that will impact on bottomline latter.

[Bongo666]

It is going to test 2 bucks even before long

[kbot]

Telecom may be one for surprises this year. After a predicted $56 million as http://nz.biz.yahoo.com/100317/3/hudx.html referers to (who plucked this figure out thin air??), I believe that internal cost cuttings will follow, and let's hope, this will lead to dividends beyond anyone's surprises.
I was wondering why my few Vector shares were acting strangely, the linked article sheds some light. There is still so much of the market I need to learn about.

[Bongo666]

Telecom may be one for surprises this year. After a predicted $56 million as http://nz.biz.yahoo.com/100317/3/hudx.html referers to (who plucked this figure out thin air??), I believe that internal cost cuttings will follow, and let's hope, this will lead to dividends beyond anyone's surprises.
I was wondering why my few Vector shares were acting strangely, the linked article sheds some light. There is still so much of the market I need to learn about.

They have already cut most of the fat out Kbot - with the exception of Paul Reynolds - so I see a decent drop in share price from here. A good opportunity to have a short term punt. Try it on paper first if you have to.

[kbot]

You may have to advise what you mean by "on paper".

Yestersday Herald had at least one big player pessimistically valuing Telecom at $2.00 using Telecom's estimated dividend of 20 cents.

This may be an excellent school book study.