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I actually believe that at some point BT will recover. The million dollar question is when and to what level. I personally believe there are much better investment opportunities out there then BT. The next time the market has a big fall I would invest in solid companies like Diageo, Unilever, AZN, or Next. In the recent past whenever the Stock Market had a big fall those companies recovered a few days later and went up. Sadly companies like British Gas (Centrica), Royal Mail and BT reached new lows and stayed down even after the rest of the market recovered. Its happened every time . Don't take my word for it check it out yourselves.
Fleccy,
Lets have a little less dramatics.
It is true Market power players can play havoc if they so choose.
This sometimes happens in a smaller company. Although not impossible it is highly unlikely to succeed in a FTSE 100 company.
BT's weakness is real and maybe somewhat overstated. I can assure you that BT's price has nothing to do with any ridiculous conspiracy theories.
If your investment strategy is based on your trust in PJ's ability. I pray that you have other investments other then BT.
I am glad your using your dividend for a holiday rather then reinvesting in BT.
Enjoy your holiday and lets hope that BT will be in better shape when you return.
The real difference between Unilever and BT is HR. BT like Royal mail, British Steel and British Gas were previously nationalised industries. All of them heavily overmanned and not customer orientated. None of them are really up to operating effectively in a competitive market. This has resulted in BT having a very substandard workforce.
Unilever, Diageo on the other hand have always had to be competitive to survive. They could never rely on public funding to support bad management decisions.
The share price of a stock at any given time is based on what the market believes its true value in the medium term to be.
That is why that most quality stocks like Diageo, Unilever where the consensus believes that they will do well in the future will value them at a premium. Meaning a higher PE and a lower dividend yield. When the stock market chooses to ignore the PE and dividend yield in its valuation one should ask why. It is quite clear that in BT's case the market is ignoring it. None of us on here know why - but it would seem that the institutions have been avoiding BT for the last few years. They obviously know something we dont.
The share price of a stock at any given time is based on what the market believes its true value in the medium term to be.
That is why that most quality stocks like Diageo, Unilever where the consensus believes that they will do well in the future will value them at a premium. Meaning a higher PE and a lower dividend yield. When the stock market chooses to ignore the PE and dividend yield in its valuation one should ask why. It is quite clear that in BT's case the market is ignoring it. None of us on here no why but it would seem that the institutions have been avoiding BT for the last few years. They obviously know something we dont.
Lamtree, Faultsman.
Do you know the real reason for BT's collapse.
Its because they have an extremely poor workforce and very poor management. This is still a throwback to pre nationalisation days.
Most of their employees were unemployable. BT always saw themselves as an extension of social services. Anybody with a little bit of skill got out of BT as soon as they were able. I know this from many of my friends who worked for a short period for BT.
Fleccy,
I hope they turn a corner. Personally I think that both Vodafone and Lloyds are a better bet then BT. However at the moment all 3 are good for no more the a flutter. I am doing fairly well as an investor as I am very broadly spread and most of my holdings have a high PE and a low dividend yield. I have also recently bought both LLoyds and VOD but more as a flutter then an investment.
Chris,
I have learnt the hard way a very low PE combined with a very high dividend yield normally is a sign of disaster looming ahead. My best performing shares all have high PE's and low dividend yield. I know it sounds illogical but those are the facts.
6 months ago they had a PE of 8 and a yield of 8% and I remember someone saying "BT it has to turn at some point PE = 8."
I just hope you will not be saying in 3 months "BT it has to turn at some point PE = 5"
Fleccy,
Where is your sense of humour. It was Captain Mainwaring I was referring to when I said "and unable to accept that the great British Empire was no more. " I was also trying to say that BT's glorious days have long gone. This has nothing to do with Brexit.
I do however find some of your comments rather questionable and even sinister when you start making ridiculous comments like " Avro isn't from the UK. His angst is being expressed through a dislike of anything typically British."
I will admit that I have a slight aversion to investing in some of the previously nationalised companies but those are for good economic reasons. If you have been following Royal Mail you might understand why. It has to do that most of these ex nationalised companies employees think that these companies are not there to provide a service for its customers. Its all about them. That is sadly what is wrong with BT, British Gas, Royal Mail, British Steel etc. Just for your information I do own shares in BP.
Talking about analogies.
You are all a load of stuck up Captain Mainwaring's.
Never able to admit making a mistake, and unable to accept that the great British Empire was no more. Some of the guys on here can not admit that BT is no longer the great ICON and is not even a shade of its glorious past.
To be brutally honest BT is going down the plug hole like Royal mail and British Gas.
I am not mentioning any names but I hate being personal but some of the guys on here really take themselves much to seriously.
Poor BT shareholders were sighing with relief. BT looked so promising this morning. It was up nearly 2% it had turned a corner.
Sorry in a earlier post I said that every week BT was reaching a new low. Even I can get it wrong its now every day that BT is reaching a new low.
Guys be big enough to admit that BThas had it. No its not going to go bust any day soon. Its just going to keep on going down until someone like DT is going to take it over for a song.