Member Info for fleccy

"Fleecy - it was obvious that the BT sp was about to decline. That’s why I sold all my shares in it having taken a profit. "

Congrats, I'm filtering you after I post this. In future anyone who starts out with Fleecy instead of Fleccy will go straight on filter if I think they're P takers.

"may have to do with credit ratings on their debt."

BT's debt isn't an issue. Financial debt comes in at just over £12 Billion, the other £6 Billion is lease liabilities that'll reduce over time. Debt would only be an issue if BT couldn't afford the interest repayments, and since they can afford them it isn't an issue.

"Can someone explain where this money is going to come from with a huge CAPEX multi year programme, other than debt..?."

The capital expenditure is funded through earnings, and I expect they might take on some more debt. Personally it wouldn't bother me if they suspended the dividend until 2023 and plough it all into infrastructure spend, or toward the pension deficit repayment, since the pension deficit payments reduce to £600 million from 2023 onwards. This is what they say about this years capex in light of the super deduction.

"We intend to capitalise on Openreach’s build capability, a positive spectrum auction outcome and the expected benefit from Government's tax super-deduction which is likely to reduce our UK tax payable to zero over the next two years. We are therefore utilising this to accelerate immediately our FTTP investment. As such we expect capital expenditure to increase to around £4.9bn in 2021/22. We expect normalised free cash flow to be between £1.1bn-£1.3bn with the increase in capital expenditure relative to 2020/21 only partially offset by the increase in EBITDA and the impact of Government's tax super-deduction."

"What amazes me most about you is the way you transform catastrophic investments and eye-watering losses into a virtue."

At least I've got money to invest Toff, unlike you who just pretends to invest. If you had any cash of your own, my posts wouldn't upset you so much. Dry your eyes mate, I don't care what your opinion is.
As far as my investments are concerned, I'm 100% certain I'll make money; It's only people like you who thinks that a paper loss is a real capital loss, why don't you do one and bother someone else, loser.

when guests on CNBC fret about the possibility of a 10% correction on US markets. BT is down 20% since the June high, and I'm so used to watching BT's historic price movements 20% drop doesn't even phase me these days.

It's probably this release that's knocked the price today, not sure why the market reads anything into this.

Why aren't VMO2 approaching the Bond markets? That would suggest that VMO2, as an independent company, either aren't credit worthy enough to borrow the money themselves, or the investment would be considered too risky for the lenders. Alternatively, why aren't VMO2 looking at finding a partner themselves, or why aren't the parent companies loaning them the cash? All very strange.
It highlights that investors in UK alternative networks are afraid to take any further risk on their initial investments, hence looking for outside partnerships. Headlines have also indicated that CityFibre have been looking for new partners, and even BT offered a partnership involving a £5 billion investment in FTTP expansion. All this suggests that the UK is reaching a saturation point as far as external investment in UK FTTP is concerned.

I view it as market manipulation. If you look at various sectors, surely Telecoms should be viewed as one of the safest and most investible.

As far as ESG and CDP, Telecoms facilitate home/remote working with the trends moving in that direction. BT/Openreach are making the right noises around fleet electrification, and highly efficient PON access network, which will make them as green as any Telecom company on the planet.

BT aren't just an FTTP provider, they own the majority of the Telecom infrastructure in the UK, ensuring that they'll always have lower costs, and better margins than alternative providers. I don't believe the narrative around "leaner and cheaper to run" Alternative network providers, since the Altnets rely on Ofcom regulating BT's prices to allow their business models to survive. Anyone who doesn't believe that, only need to look at the recent controversy around the Equinox offer. Another problem for the Altnets, is that they'll need scale to survive as bandwidth and backbone requirements/costs increase.

BT don't just provide FTTP, they are one of the top three mobile providers in the UK. BT own the largest Backbone network in the UK, as well as being the largest Telecom provider to large and small Businesses in the UK.

Eventually all media will be provided over the Telecom networks,so satellite and Terrestrial TV will move online, and will be a further source of revenue for the big Telecom providers.

The Worldwide IOT market is projected to be worth a Trillion Dollars by 2030, with much of that revenue going to the big mobile/fixed network providers.

The only question is, why are Telecoms currently viewed as univestible when the market is supposed to be forward looking? The only reason I can think of, is because the big players want to mop it up now.

I can't find any reasons for the current downward trend, but it's only a concern for those desperate to sell. I think of it as testing the weak.

"The UK is cheap - you should invest some of your money there"

https://moneyweek.com/investments/stockmarkets/uk-stockmarkets/603751/the-uk-is-cheap-you-should-invest-some-of-your

"Wetherboy is correct. It's a full repeat copy of the old update!"

I didn't even read it to be honest, I stumbled across it on a google search and knew it was something you normally look at. I'll take your word's for it that it's identical to the previous one, as I don't have much faith in analyst earnings opinions, so I tend to ignore them.

BT Group consensus - 27 Aug 2021

https://www.bt.com/bt-plc/assets/documents/investors/financial-reporting-and-news/latest-consensus/btgroup-consensus-27-aug-21.pdf

https://www.gov.uk/guidance/check-if-you-need-to-pay-tax-when-you-sell-cryptoassets

"Benyamin Ahmed, a 12-year-old Londoner, created a series of 3,350 emoji-type pixelated artworks called Weird Whales and sold them as digital tokens for the massive sum, which he is keeping in the crypto-currency Ethereum – he doesn’t have a traditional bank account."

Interesting story; I assume he will have to pay Capital Gains Tax on the sale of the NFT's, since he designed, coded, and sold them. Children are subject to the same tax limits as adults, I believe, so I would think he'll have to convert a chunk of his Ethereum to cash in order to pay the HMRC.

First £12,300 are tax-free.
£37,700 taxed at 10%: £3,770
£240,000 taxed at 20%: £48,000
Profit after tax £238,230

What can I say?

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

"Retaining its ‘overweight call on BT shares, it reckons they are worth 260p each. That target is more than 50% above the current 170p share price."

https://www.proactiveinvestors.co.uk/companies/news/958717/bt-group-plc-shares-was-the-love-affair-over-even-before-it-began-958717.html

"This bb is dominated by Fleccy ramping BT. If you look at his posts and calculate his losses, he definitely should not be giving financial advice"

Show me a post where I've given financial advice, all I've ever done is expressed my opinion and been honest about my investments. You're correct, I am currently down on BT with my break even price around 196p. When the price recently hit 205p I was well in profit, and I'm sure I will be again at some point.
As I've showed you, BT offer Cybersecurity services as well as Telecom services. Believe it or not, Telecom companies aren't one trick ponies, they offer a multitude of services, including "Cybersecurity".
Bladerunner, you should get over your obsession about my posts, it comes across as slightly neurotic.

"Maybe, just maybe Drahi and Deutsche Telekom are forming a joint bid? Drahi gets what he wants Openreach and DT gets the rest of BT? Just a thought."

Anything's possible. The market either forgets, or dismisses EE and other parts of the BT Group businesses, which show higher revenues than Openreach. FY21 Consumer Revenue came in at £9.885 Billion, and Enterprise Revenue came in at £5.449 Billion, both beating the Openreach Revenue of £5.244 Billion. Other things to consider is the fact that over half of Openreach Revenue is generated from BT Group internally, with £2.488 Billion raised as external Revenue, and £2.756 Billion reported as internally generated revenue showing as the biggest component loss, of the Intra Group loss, in the BT Group Revenue column.
If Openreach wasn't accounted for separately, from Group, Openreach revenue would likely show as £2.488 Billion, which is externally generated.
An Openreach completely separated from BT, would still rely on BT for the biggest part of its earnings, but under those circumstances BT would be able to negotiate better terms under threat of moving work to other operators. BT would still own all the Ducts, Poles, Wayleave's and Fibre currently being installed on BT's behalf, and therefore take the rental income, from said assets, so how much of that £2.488 Billion externally generated revenue would go to BT?

Lol you just beat me to it.

https://www.thetimes.co.uk/article/bt-may-prove-to-be-toughest-call-yet-x6r7jgsws