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Its a real catch 22 SOM, Bid or no bid. May I suggest Its you who tends to get angry here. If I agree a bid is coming and it does not I was wrong. If I say a bid is not coming and it does come I was wrong again. The thing is nobody knows. To keep brow beating people here is a dead end and as people clam up we learn nothing. You will not change anything attacking the CWU. Do not think of them if it winds you up.
Keep calm SOM and don`t forget to have a good weekend yourself.
Morning SOM, AbjectPerformer was being pretty reasonable there. His point is good, less confrontation and more accepting others views even though they differ from yours. The thing is nobody knows if a bid will ever come. I wouldn't hold your breath. Attacking the CWU will produce nothing here. I doubt they read here.
£2 a share will happen when inflation is back to 2% and interest rates are halved. Never mind 10 years.
10 years should mean £3.50 A share.
As long as we keep going down the path of CAPEX investment , for the fibre/5g roll out for the next 6 years , and make sure as a priority we service the pension deficit. Then i think that most of the posters here , will easily cope with a few years without a divi.
This is no share for hot headed , paranoid bed wetters. That panic every time the SP goes down a penny, and hysterically scream , roll on the bid. Remember this is the long game , we will get our reward.
This time in ten years we are looking at £2 a share , bring it on.
I’m teetering on the brink of filtering mandy.
You may not like our views but if you end up filtered by everyone you can’t even debate , you’ll be talking to yourself.
So I suggest you put less messages on the board and be more accepting of others views. Even if you don’t agree.
I’m not being malicious when I say this. You genuinely flood the board with too many posts. To the point where I don’t read any now. If you posted less often , I’d be more inclined to read them.
" The regulator is unlikely to allow BT to become some consumer cash machine."
Fatprofits
The company by that stage will need to diverse and use cash generated by investing in other businesses, partnering and showing that it is moving forward in new directions, by using the cash
nothing is guaranteed , that is a given , but people work on ...probabilities.... of something happening
Fleccy
I am with you
I need a supersized green box to put all the individual green boxes
.... the scrolling of green boxes is getting to be an issue !!!
UN FILTERERING even, predictive text.
Hi Fleccy, may I suggest infiltering SOM for 48hrs. He is using a more friendly tone and has been man enough to apologize to AUS for past issues. Up to you fellow BT holder.
I wish there was a way of filtering the green boxes too, I have 38 filtered messages out of the last 100 messages. I don't know how many are Mandy and how many are Porsche.
If you time your visit to steam gathering weekend then you can visit Dunscomb park Helmsley where its held. There is not a more beautiful setting in the country IMHO.
Morning SOM, As I live about 95 miles from Whitby I usually drive within the day. Go out sea fishing on 12hr trip usually. I stayed in a B+B on north side of harbour which was very nice but 30years ago. I will google Whitby stays later. If you are traveling about there is also Robin hoods bay to look at. I have walked from Whitby to Robin hoods bay then got bus back. Beautiful. Helmsley is also worth a visit especially on steam gathering weekend. BT shares will be about 180p by then. If not I will buy you a beer. That's from a Yorkshireman doubleon t onda ( two up on a honda )
Https://www.cityam.com/why-decembers-inflation-surprise-is-not-a-moment-to-panic/?
Fat how can the regulator stop BT making profits, if those profits are due to BT running an efficient business? There's only so much the regulator can legally do and I'd say they've more or less done as much as they can. In Telecoms it's all about scale and BT have that incumbent scale, so their operating costs will always be less than others. What I can see happening is BT eventually offloading around 50% of Openreach, once the pension is sorted, but the IPO cash will benefit BT shareholders.
‘Misunderstood by women all my life’
Probably because you approach them with a white van and ropes while wearing a hood and gloves.
Some promised land awaiting once huge CAPEX and pension recovery payments are mostly out of the way is far from guaranteed.
The regulator is unlikely to allow BT to become some consumer cash machine. Reading other posts some see
this differently.
IIRC movements of holdings beyond 3% that move by 0.1% deserve an RNS within 24 hours. Someone moving ~136M shares suggests someone who already has a major stake. Surely if there's no RNS that suggests a new stake builder below 3%.
I was lucky when I brought BT for £2.01 and have averaged down, feel I was lucky when I was looking at BT when they was £5 and thought that’s a bit expensive and brought other shares.
BT isn't a Revenue Growth stock, it's a cost cutting play with growth to the bottom line Net Profit once the current Capex cycle ends and cost savings kick in.
Apologies for the typos, there not their etc.
There is current consusus estimates out to 2026 - all be
it subject to revision. On these their is no pre tax profit
griwth forecast by 2026 snd net debt is estimated to be £2 billion higher.
They are a very rough guildline, at best, but no growth for now is weighing heavily.
As a long-term investor, I like to look at share price performance over several years, not just the past 12 months. For BT Group (LSE:BT), this doesn’t make for great reading. BT shares are down 50% over the past five years and down 8% over the past year. Yet there are several reasons why I think this could be a great value buy right now.
To begin with, the share price fall has helped to increase the dividend yield. The yield calculation takes into account the dividend per share and the current share price. Even though the dividend per share amounts haven’t really changed much over the past couple of years, the yield has been rising as the share price has been falling.
It’s currently at 6.6%. This is higher than the FTSE 100 average of 3.8% and higher than the current bank base rate of 5.25%.
So, for some investors who think the stock is undervalued but that it could take years to come good, this is a good point to consider. To be able to pick up a good yield while waiting for a share price recovery is a huge benefit in my opinion.
Low P/E ratio
Despite the stock halving in value over five years, it’s key to think about how this corresponds to earnings. For example, if earnings have fallen by the same proportion, then BT shares are fair value.
The price-to-earnings (P/E) ratio is a perfect tool to help me figure this out. A fair value in my eyes is 10. In fact, the current ratio for BT is 5.99.
This highlights to me that the stock is undervalued relative to earnings. Reported profit before tax in the half-year release was £1.1bn, up 29% versus the prior year. If this momentum continues then the ratio will get even cheaper if the stock price doesn’t rally.
As a point to note, it can be sometimes dangerous to take one financial ratio as standalone evidence of value. I need to ensure I look at this along with other factors before making a decision.
Looking at the future
Finally, when I look to the future I’m optimistic that the value is much greater than currently appreciated. The expansion of full fibre broadband (FTTP) has huge potential. The latest report showed that demand in Openreach for FTTP is at a 33% take-up rate. I think this could increase massively over the coming year.
The retail FTTP base grew year on year by 48% and this too has the legs to scale quickly. This will all translate down to higher revenue and profitability for the group.
I’ve flagged up some risks already, but I believe BT shares are trading at a 50% discount given where they were five years ago versus where I think they could be in five years’ time. On that basis I’m thinking about adding the stock to my portfolio shortly.
The post Why buying BT shares now could be like buying a £1 coin for 50p appeared first on The Motley Fool UK.
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Jon Smith has no position in any of the shares mentioned. The Motley Fool
Fatprofits
the markets aren't interested in MCAP during a downturn.
They are interested in earnings,KPI, and macro sentiment and the BOD performance looking after the assets etc
The net debt has assets alongside it
Having a new CEO start during a economic and geo political storm is also adding to risk right now , although she has a 2 month handover
p/e isnt much use right now, agreed... given no one is quite sure what the year ahead forward earnings is yet and the analysts are unsure too right now too I suspect
No, I explained at the time why I decided to go with VOD. It's a pointless exercise wishing you'd done this, or waited for that, in the end you make a decision based on your opinion at that moment in time. As far as future top ups I'll apply the same logic, but it's currently between Lloyds and BT for Feb top-ups should I decide to reinvest dividends at that point.
SOM, I bet you have just watched PMQ`s.