Member Info for fleccy

Pump up the Jambone, pump it up

While your feet are stompin'

And the Jambone is pumpin'

Look ahead, the crowd is jumpin'

Pump it up a little more

Get the party going on the dance floor

See, 'cause that's where the party's at

And you'll find out if you do that

I don't want a place to stay

Get your booty on the floor tonight

Make my day

I don't want a place to stay

Get your booty on the floor tonight

Make my day

Make my day

Make my day

Make my day

Make my day

Pump up the Jambone, pump it up

While your feet are stompin'

And the Jambone is pumpin'

Look ahead, the crowd are jumpin'

Pump it up a little more

https://www.youtube.com/watch?v=C3fLmogyY_s

"So what was drahi and DT rationale for investing such massive sums?"

DT's an easy one, it was part of the deal for EE, they took shares instead of cash.

Drahi, I have no idea, I can only guess; Maybe he knows something we don't, or it's as simple as he states and he see's BT as undervalued. What's your theory?

"And that’s all good fleccy but my question was ‘is the market and how it behaves going to change in the future"

When BT complete their 5G and FTTP rollouts, close all the no longer needed Exchanges, shrink the workforce due to convergence and more efficient access network, grow bottom line Net Profit and Free Cash Flow, why wouldn't the market reward that? It comes down to whether you believe BT will achieve all that, I believe it will; All that should be clear from my previous posts, I've been saying the same for years and explains why I increased my holding significantly during covid and why I reinvest when I see the price at super low levels. Does that answer your Question?

We all have our own individual timeline's Pete, personally I'm in no hurry when it comes to BT. I'm looking at 2026 and 2030 as two key points for BT's transformation, and while I see value in the price I'll consider dividend reinvestment. I also have the choice to use dividends as supplemental income for other uses, if required. Clearly when I first invested in Telecom, I didn't see the persistent Brexit bashing UK stocks would be subjected too, or that the Telecom sector would be targeted by, in my opinion, unwarranted negative market narratives, but you play with the hand you're dealt; I've decided to play my hand by betting against the market, time will tell if it'll pay off, I believe it will.

Has been Musk'd

Fusion, clearly BT is undervalued and worth more than £3. I'm not going to keep listing all the reasons why BT is undervalued, feel free to go back through my posting history; What I will repeat is that BT is a cost cutting play, with huge potential to increase the bottom line Net Profit. Rolls Royce is a good British company, but they have their own competition as do most other companies across all sectors.

In my opinion the market's are corrupt, and encourage/invent narratives to suit where they want to drive sector and company prices. Clearly UK stocks are being punished on the back of Brexit, and the Telecom sector in general has been hit by a barrage of negative narratives over the last 5 years. I can give you examples of ridiculous stories used to bash the sector, like the Wall St Journal article about lead in Telecom cables; If lead is a problem in Telecom cables, what about all the lead in pipes, buildings, electrical cables, etc, etc? Clearly a ridiculous manufactured story to bash telecoms with. US Telecoms have been targeted and under the cosh just as much as UK Telecom stocks, with another recent ridiculous story about Amazon weighing moving into the mobile market also used to bash US Telecom stock prices. BT share price has also been attacked by various stories, involving Sky/VM/Talk, all of which came to nothing but knocked the price. I'll just wait it out, keep collecting the divi's, and top up where I see value.

I told you Mandy that I'd recently looked at one of your messages out of curiosity, I can always filter you again if you wish?

"They all recommend his posts, naturally, even though nothing Joe says make sense in the current economic climate. So what is the agenda here? At first I thought these were BT guys. Then I realised that BT would be stupid to employ such morons. So I've come to the conclusion that, when the bid arrives, they are positioning themselves to fight to 'Keep BT British'"

LMAO

What has the economic climate got to do with BT? Internet connectivity is needed as much as Bank accounts these days, I know I wouldn't be able to manage without online access. I wish I did have the power to dictate ownership of BT, but unfortunately I don't; The reason BT wont be taken over by a foreign entity is down to Government, and nothing to do with posters view's on here, all I've been doing is giving my honest common sense opinion. I think you need a reality check Mandy, you're letting your imagination get the better of you.

I saw that article, but it's a bit vague. If you can get cashback in a shop, garage, or supermarket, and Post Offices do they count? Who do they go after to supply the required ATM's and will the regulation apply to challenger bank still in their youth? It raises a lot of questions.

"If one of those isn’t Drahi offloading his shares & what that could mean (I’ll give you a clue, it’s not necessarily DT who will buy). It’s very odd."

Drahi and DT can get rid of their holdings tomorrow for all I care, sure the price will take a hit but me and many others will fill their boots.

I think BT may lose some voice customers with the move to Voip, but many have already given up on a landline anyway, and the remainder are likely small business and the old; Even if they do lose some legacy voice customers, the loss will be small compared to savings due to the PSTN switch off. I suspect in the year following the PSTN switch off, if BT haven't already depreciated the legacy assets, they may show a big accounting loss from write-down's, but that will reduce their tax bill in subsequent years. I don't see a a big loss due to competition, since BT have had to compete for decades, first through 131 access, then Carrier Pre Select, then DSLAM's in Colo areas and later with FTTC, and throughout all that you've also had the CATV companies. In a regulatory gloves off fully competitive market BT would wipe the floor with the ALTNETS, which is why OFCOM told Jansen off for implying it. BT will have competition going forward, it always has, but the media narrative is overplaying it in my opinion.

Tell me Aus, where do you see the risks for BT?

Aus I wouldn't compare BT's forward looking statements and strategy, as detailed in their Annual Reports/Results, as comparable to entries in the Bible; I just believe what BT have been saying, so nothing to do with Blind Faith. It isn't even a case of reading between the lines, BT have telegraphed a clear and easy to understand strategy even I can understand.

Aus you should read through BT's statements since before 2020, it's quite clear what they're doing. I can see some risks around the PSTN switch off, but I'm sure BT will have sorted out any issues, during various ongoing trials, leading up to the event.

"Brute force is like having 1,000 nurses trying to perform a brain surgery, you may get lucky"

I think we'd all rather have a Brain Surgeon on the job, nurses can do other things they're more qualified for addi.

Jambone, unlike QBT, my BT shares are paying substantial dividends. The difference between BT and QBT is galaxies apart, one has a viable business making annual profits, the other has never made a profit and a roll of the dice. BT might have a low share price, but they're investing Billions into useful infrastructure that has intrinsic value. I'm not worried about my BT investment as I earn income from every dividend payout, with next one in September.

"Fleccy - you thinking I want to scare you out of BT only serves to highlight your delusion."

Really, so statements like:

"I can for the first time seriously see risks that could break BT"

"Doesn’t sound like sound investment to me"

Maybe I'm misreading your motives, but I wouldn't call it delusional going off what you say, and your historical posting history. You say you hold BT stock, but it wasn't that long ago you were pumping Virgin Media and using them as a tool to bash BT; You were adamant that Sky and VM would merge, because Malone is a buddy of Brian Roberts, but that came to nothing.

The market media has also used various speculation, usually involving Sky/VM/TalkTalk, to bash BT's share price, all of which I've argued against and have been proved right.

"reported you again!"

Lol, what for being correct?

Clearly the rigs use brute force to find the target hash, otherwise you wouldn't need the ASIC mining rigs. Jambone you should report yourself for being wrong.

"The trading conditions you want to get worse and the other things affecting BT price are the same pressures which could force Billions of shares on the market for years to come, not to mention the unknown unknowns which could suddenly happen due to an extended period of market negativity"

I think you're confusing BT with a growth company, with no income and limited to either borrowing or having rights issues. I've not seen anything to suggest BT need to borrow excessively to fund their Capex requirements. The market may be testing DT and Drahi, to see if they can shake them out, but again that's irrelevant to BT's strategy and any drops would likely be short lived anyway. If something's cheap it'll soon get snapped up, especially by big players, look at Drahi managing to build a near 25% stake and barely moving the price. If DT or Drahi did decide to sell their stock, it wouldn't be on the open market it'd be Off Book.

As far as unknown unknowns, doesn't that apply to any investment at any time? If everyone thought along those lines no one would ever invest in anything.

"I can for the first time seriously see risks that could break BT for a long time. In part brought in by their weakness which you think give you an extra 5% of shares for your money"

BT generate profits, the share price weakness isn't really important to drive through their transformation; If they did require cash, they have a reasonable credit rating and have the option of suspending the dividend, unlikely though as the dividend is well covered. Basically the weak share price is irrelevant in respect of BT funding its transformation. The pension is being dealt with under a plan and nearly a third of BT's net debt is lease liabilities.

Aus, you'll have to find more substantive reasons if you want to scare me out of BT.

"QBT have found an alternative to brute force and it’s 2.6x faster, keep up for goodness sakes."

No they haven't. If what they're saying is correct, all they've done is whittle down the number of Nonce's/Bytes in the pool, the rigs still use Brute Force to find a Hash lower than or equal to the target Hash.

Aus I get the gist of what you're saying, but the market is only taking a superficial view of BT's business, and underplaying the end result of the current transformation. Basically, the PON network Openreach are building on behalf of BT is more energy efficient and requires far less maintenance.

As a Transmission Engineer I watched telecoms evolve through the various different hierarchies, so I believe I have a good understanding of where things are heading. The media narrative, that Telecoms will be permanently locked into permanent Capex cycles is based on the last 30 years of network evolution, and is wrong; PON, DWDM, Convergence and 5G leaves little room for further large scale evolution, at some point the narrative will change to reflect that.

Going forward, BT will need less Engineers, have lower energy requirements and be a far more operationally efficient business, it's just a few years away; So I don't mind buying BT while I see the price as cheap, since I believe my bets will pay off down the road.

"An AI application could start at anytime and solve the hash puzzle in milliseconds."

Not really, Mathematicians, Computer Scientists and Engineers have been trying to find alternatives to brute force hashing power since the early days of Bitcoin, without success. The industry answer is to produce ever faster more energy efficient mining rigs. A large enough Quantum computer, running a working algorithm, may be able to find a solution in milliseconds, but such an event would break the difficulty algorithm limiting the processing time to 10 minutes per block.

"Where my eyes are set...... What do others think?"

What a waste of electricity, they could use the energy for any number of useful projects instead of useless crypto mining.