How is it a good post when Soros is suggesting the truer value is £6? Soros, while you might well be right, it would seem after today's 6% rise, the market doesn't agree with you. That said, after the fairly meteoric rise from 750ish to 1200+ since the gas theft anouncement, it doesn't take a brain surgeon to work out that it might be a good time to place a short. And if that's what you intend to do, good luck, but I hope you get burned, in all honesty.
RE: Customer Inertia The Only Posit..
Good post, I have to agree with you we do benefit from sticky customers as does the rest of the industry. Where do you see the sp short term? Retest of 1500?
Customer Inertia The Only Positive
Having been involved with TEP since 1999 it has never ceased to puzzle me how evangelical distributors get about the share performance. At the end of the day, it is a bog standard company with a bit of an odd route to market, that's it. To date, it has done what it does well within the confines of the marketing model and the revenue is fairly solud for the time being due to a) Customer Inertia and b) The messiness of changing multiple services. However, no logical analysis of this company can justify paying 20 year's worth of earnings to buy a share, which is where it is currently sitting. For a multiple like that you need a high growth company with an exciting USP and something to shout about. What does TEP have? a) Growth which is quickly running out of steam. Bear in mind that growth to date has been largely fuelled by adding additional services. This can only go on for so long and has the effect of making the company more complex to keep under control anyway. b) Exciting USP - Well, there simply isn't one. c) Something to shout about? Again, what exactly does TEP do that you can't get for less elsewhere? I suspect the SP is only where it is because it is overpaying dividends to keep the yield unsustainably high. If you were in Charles Wigoder's shoes right now wouldn't you want to cash in your lot with the SP near £12/share? This problem from his point of view is that he can't and there is no prospect of TEP becoming a takeover target either with the network marketing being the DNA of the company. The company has a value but it is nearer 10x earnings than 20x, £6 is the benchmark.
<b>SHORTS closing there positions</b>........... TELECOM PLUS PLC (LN*) Ennismore Fund Management Limited 0.50% ↓ -0.05% 2015-07-24 TELECOM PLUS PLC (LN*) JPMorgan Asset Management (UK) Ltd 0.78% ↓ -0.08% 2015-07-23
17 Jul '15
TEP Technically Very Strong......
TEP Telecolm Plus, looking very bullish, strong momentum and day by day overcomes volatility. Soon to pay a big Divi. 18th of August in fact, goes ex divi 23rd July https://pbs.twimg.com/media/CKGXq1zWEAAiAdb.jpg
16 Jul '15
RE: TEP uplift
A bagger on a share as big as this? I'm not that lucky. My 759 buy is looking very tasty atm, but very tempted to sell half, as it's looking a bit toppy to me. Too much, too soon, maybe? Loving this share though, after some of the dogs I've bought over the last year or so, lol.
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