Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
If past performance is anything to go by then selling a decent rise is the way to go with this share although the charts do suggest we may finally be out of a long term down trend that started in 2015? I was convinced BT would do really well in an inflationary environment, but I was blindsided by pressures that would come from government (under pressure from its people) and the unions.
Holding this share has been a mistake for anyone who purchased after 2010 IMO. Instead of buying dips in tranches I should have sold any rise however that’s easy to say with hindsight. On the flip side I have to say that BT have made some excellent progress with the fibre build. 9.6 million premises reached to date with 29% already connected is some achievement.
When it comes to share price performance BT Stands for 'Bloody Terrible'.
The Telecom sector appears to have been in an uptrend from around November 2022 and I’m hoping it continues that way. If I was buying more BT.A I’d be tempted to wait until after the results day as it usually goes down. I’m blaming the increasing debt pile for the big drops on results days. For me the debt needs to start going down otherwise its just more of the same RE the share price.
I dread to think what the BT share price will be when the FTSE hits 6000 again. Is there any other sector that’s performed worse than telecoms this past 5 / 6 years? This is one of the most painful downtrends I have experienced. Even the Verizon SP appears to have thrown the towel in and that was bucking the trend until fairly recently.
Spin off Openreach Mr Jansen and put us shareholders out of our misery. I'd happily ditch the bulk of my shares now at £2.75. I bought this share to protect me against inflation not to pay out 16% pay increases to workers. Jee Wizz.
I think the share price decline is warranted and BT is my biggest holding in my portfolio. The market is sending a clear message that more debt is a bad idea because interest payments on new borrowing will be high. Personally, I think BT should be looking to reduce debt from now on even if it means cutting the dividend and slowing the rollout of FTTP. If BT’s net debt increases on the next results (Q3) the share price will get smashed again regardless of the assets /investment its acquired. BT has a low valuation for a reason and it’s not because there’s some crazy market maker who’s got it in for BT.
I believe its BT's Q1 results announcement tomorrow? Reading Vodaphone’s results a couple of days back it looked as though they did well in the UK via annual price increases across contracts. With BT primarily being UK focussed I’m expecting some of that good news to feed into improved revenue. I’m a little surprised its trading someone near the bottom of the 6 month range today.
Today 176
Tomorrow 185.30
Fleccy,
You are definitely one of the most knowledgeable posters on LSE when it comes to telecoms and I enjoy reading your posts but I get the impression you’d still be bullish on BT even if it was on the brink of collapse. ‘Davidphillips’ is merely stating a fact, the price is fair value, it’s on a forward P/E of 11 with a yield of approximately 4%. I know pricing a company is a little more complicated than that but the market is basically saying “ill believe it when I see it”. The plan is good but like Davidphillips says the time for talking is over, management need to implement the plan and the numbers need to start to improve before a re-rate takes place. On the flip side I wouldn’t be so sure that the share price wont rocket, there is the potential here for a takeover or a spin off of Openreach that could leave those waiting on the side-lines for a lower entry point very disappointed.
The update from AT&T yesterday will most likely be weighing on telecom stocks today. It was a positive update for the most part easily beating analyst EPS predications but the mention of customers delaying paying their bills prompted them to lower their full year free cash flow outlook. The AT&T share price dropped 7% on yesterdays news and it dragged Verizon and others down with them.
There could be a decent sized shake out here. I still expect BT to go above the 12 month SP high in the next 6 months if not sooner. Few bumps on the way no doubt.
Yep, any news of any sort on the economy effects BT's share price in a negative way. Inflation concerns = smash BT, BOE interest rate rise = smash BT or perhaps an analyst reiteration from UBS or Deutch spank = smash BT.
With hindsight I just wish I'd have traded my position in this share instead of the usual buy and hold. Some very big moves this past 12 months on this share. Someone's probably made a fortune.
Most definitely allybayy. It almost felt obvious that the share price would be somewhere near the £1.80 mark before Drahi can make an official bid for the company when the share price was touching nearly £1.35 a couple of months back. IMO it really shouldn’t be the case that a company is worth 21 billion one minute and then 13.5 billion a few months later when nothings really changed other than vultures circling to grab a bargain.
"Anyone who thinks the market is currently rational, is looking through Rose Tinted Spectacles in my opinion"
I agree with that statement, but I believe there are good inflation hedges in some equities. Utilities to my mind should be better protected from inflation as consumers will give up spending on non-essentials if money becomes tight to pay their bills.
Without BT there is no Ocado.
One thing I have observed is that markets appear to punish telecommunications companies more than others when inflation figures come out higher than expected. I do find this slightly baffling with a utility type business that is able to increase its prices at CPI (currently 4.2% in the UK) plus an additional 3.9% and retain all its customer base (Openreach specific). BT will simply be able to pass all its extra costs and some onto its customers unlike a lot of businesses. BT’s debt on the other hand is fixed at probably the lowest rates in history. A business like Ocado however is up over 1% today and its never made a profit, it will have to pass on already expensive costs and customers could abandon it overnight.
This share is all over the place. What next... 125 or 250?
Big jump just now
Verizon posted their Q3 earnings earlier and they were better than analysts expected. Telecoms having a good day, long overdue.