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Abject, Yes there are some similarities.They are both well down from previous highs but Verizon PE is over 14 ATandT is over 8 and BT is 6.
Abject, Yes there are some similarities.They are both well down from previous highs but Verizon PE is over 14 ATandT is over 8 and BT is 6.
Savage, if that’s your view are you sure that investing in equities is the best place for your money ?
Come the revolution you’ll lose it all!
No Aus not missing anything I didn’t dispute that Brexit has caused its share of problems merely that it’s overly simplistic to think all UK problems started in 2016.
The stuff I listed has been acknowledged by economists and other interested parties for years as contributing to the undervaluations on the UK market endless news articles and academic musings are online you don’t need to look very hard.
It may suit your argument to say it’s all down to Brexit but the slippery slope started years before that and Brexit merely made things worse.
Poker, isn’t it the case that if you take out the best bits of any country’s statistics they won’t perform as well?
Aren’t the numbers supposed to include everything?
Aus, I wish it was only one thing but I think you are missing things if you only think Brexit. Successive governments have hit UK pension funds going back years from thatcher’s allowance of pension holidays to browns dividend tax credit grab to various restrictions on where pension funds can invest causing massive reduction in the share of pension investments in equities as funds had to move to fixed interest to meet stress test requirements. Add to that the crazy drive to ESG focus which has hit fossil fuel and defence companies then add over regulation which hit telcos like BT and reduced the inclination to take risk in banks ( article in past week on this , I think in the Telegraph. ) Also allow for erratic tax policy from investment allowances to corporate tax rates to windfall taxes . On top allow for on off views on support for nuclear and new oil investment .For remainers Brexit is an easy target but it’s only one of many things that have reduced liquidity and inclination to invest in U K . All of them are consequences of successive governments not having a cohesive plan for growth in the UK. I wish the answer was just it’s all Brexit but in my view our dear government and its predecessors have made us unattractive in all sorts of other ways. And the politicians still seem to kid themselves they can drive growth when they’ve been a blocker for decades.
Move Along ……I’ll second that
It’s not my money that’s needed it’s the huge amounts of liquidity sloshing around the USA that brings all sectors valuations to a big premium on UK valuations. Lots has been published on this fact lately , check it out.
Thanks Fleccy ,I’d forgotten that . Not sure a secondary listing is the same as the main listing. As for litigation risk the hundreds of companies listed on USA exchanges seem to manage that risk so probably not insurmountable. I’d love to see it mooted as a possibility if only to see the media meltdown and all the “ disgusted of Tunbridge Wells” crowd worked up into a frenzy at the possibility. It would be great entertainment and to be fair as a long term holder BT hasn’t provided much of that in recent years !
Is there any reason why BT couldn’t follow Shell and look at moving its listing to the US market. Telcos are valued much higher there , I can imagine the fury in the media if Kirkby said this was being considered.
Why not?
Held
Who is Alison Kirkby?
Is it beyond the realms of possibility that they are talking if dividends cuts because they are shorting?
Chicken egg. Egg chicken?
I agree about the shorters but when day after day the S P goes up in the morning only to lose all the gain and often more in the afternoon I suspect they’re more in control than we really appreciate.
MaryBr, generally agree on all brokers but whether we believe it or not at least JPM provides a logical explanation for their view. Not something all brokers do especially UBS at the other end of the spectrum on share price expectations.
Not sure the Price Cap is quite the same as it was introduced as an emergency response to the war impact on utility supplies rather than an attempt to manage business as usual pricing. Even the apparent downward pressure it applied allowed British Gas profits to increase tenfold from 22 to 23 more than compensating for the costs they incurred during Covid.
Seeing this prompted me to wonder if ,as an independent company, there are any constraints on how much profit BT can make in any area of its business. I can only assume there must be otherwise the Class Action wouldn't possibly have a case and the lawyers clearly think they have a chance of winning.. On the other hand if there is a limit then surely OFCOM would be policing the pricing.
I can't think of any other business where Government or their agencies decide how independent companies price their products, don't think gas and electric are decided by government as Centrica made huge profits last year when people were struggling with their bills.
Can anyone explain how this works ? I'd assume that if BT were to consistently overprice then ultimately they'd slowly go bust but I'm obviously missing something.
I wonder what the benefit of staying British owned is especially how it will help the share price.
Could any of the keep BT British crowd explain please.
thanks
Interesting ,two days in a row institutions ( probably algos )selling into an early rise to end the day with little movement