Telecom plus PLC FORECASTS 2015 2016 Date Rec Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p) Peel Hunt LLP 26-01-15 BUY 62.97 63.71 40.00 73.49 74.14 48.00 FinnCap 20-01-15 BUY 62.90 64.40 40.00 74.70 76.60 47.00 Westhouse Securities 18-12-14 BUY 2015 2016 Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p) Consensus 62.94 64.05 40.00 74.09 75.37 47.50 1 Month Change 0.00 0.00 0.00 0.00 0.00 -0.00 3 Month Change -0.94 -1.15 0.00 -0.10 0.06 1.43 GROWTH 2014 (A) 2015 (E) 2016 (E) Norm. EPS 3.87% 61.44% 17.66% DPS 13.33% 17.65% 18.75% INVESTMENT RATIOS 2014 (A) 2015 (E) 2016 (E) EBITDA £42.46m £62.60m £73.06m EBIT £37.37m £61.90m £72.70m Dividend Yield 3.46% 4.07% 4.84% Dividend Cover 1.17x 1.60x 1.59x PER 24.75x 15.33x 13.03x PEG 6.40f 0.25f 0.74f Net Asset Value PS -23.19p p p Telecom plus broker views Date Broker Recommendation Price Old target price New target price Notes 21 Nov finnCap Buy 1,025.00 2,000.00 1,880.00 Reiterates 19 Nov finnCap Buy 1,025.00 2,000.00 2,000.00 Reiterates 10 Oct finnCap Buy 1,025.00 2,000.00 2,000.00 Reiterates 16 Jul Beaufort Securities Buy 1,025.00 - - Reiterates 15 Jul finnCap Buy 1,025.00 - - Reiterates Telecom plus director deals Date Director Type Volume / price Trade value 26 Jan 2015 Melvin Lawson Buy 25,000 @ 985.00p £246,250.00 26 Jan 2015 Julian Schild Buy 25,000 @ 985.00p £246,250.00 26 Jan 2015 Charles Wigoder Buy 25,000 @ 985.00p £246,250.00
TEP Rebounding Off A Bottom...
TEP Telecolm Plus see chart below is this the bottom?, have you seen the Buy Volume today. Big Director buys monday............Speculative Buy ??? https://pbs.twimg.com/media/B8Xqb5TCUAEm6Cj.jpg"
RE: RE: Dont get it
The biggest problem to me looks like an overly-agressive dividend policy, which is find when the growth is very strong, but if you look at the interim reports, the growth is just 30% of what it was a year ago.... Can't see how they can justify their position at the moment to be honest....
RE: RE: Dont get it
http://www.utilityweek.co.uk/news/and-then-there-were-seven/951682 The article attached is the best I could find on the deal with N Power. TEP are not vertically integrated so will lag in the benefit as cost will not reduce by the same amount as the spot price for gas and there will be a delay for TEP I should imagine as the big six are slow to reduce tariffs, to which apparently the cost for TEP is linked. The big six, being more vertically integrated may actually suffer more in the current market as gas producers because that side of the business will show falling profits. This may benefit TEP comparatively but the falling turnover is probably what the market is overreacting to. RWE has fallen too(N Power parent) but the fall for TEP from £11.50 to £9.82 is the bad bit by comparison http://screencast.com/t/rL4B6M9L
RE: RE: Dont get it
Hmm - read their annual report. TEP have minimal exposure to wholesale oil prices as their partner Npower bears the brunt of the wholesale price risk. See: https://www.utilitywarehouse.co.uk/files/whitepapers/77ef18df679563cf689366bd0d0cf42ac58e2819.pdf under 'Wholesale prices risk' Lower oil prices => lower revenue, once TEP lower their retail prices. But also means lower costs. Not necessarily a net loss when it comes to profit.
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