Fleccy, I know this is all over the news and something should be going on, but until an announcement or RNS, still just a rumour. Director buys are positive for share and they are confident of future. However, we dont know yet the details of talks about OP and to some extend is going to benefit us. Talks may be at very early stages. It is not that I like the BOD (actually the opposite) but it does not look that it is insider dealing until we know the details and stages of negotiations.
Emm “ Money markets are not cheap if your credit rating is downgraded” BT provide essential services especially these days. Why should they get downgraded if they need more cash to keep the country keep going and connected. There was only one week of lockdown in March and GDP suffered 5.8%, it could have been worse without BT’s service. BOD never mentioned if they exhausted all options including government backed loans or grants.
Fleccy, market is not that much irrational regarding the fundamentals. BOD has been giving impression that something isnot right. Last quarter CEO said that BT didn’t meet the expectations. The final result he behaved as BT was on the brink of collapse. Of course he promised a good return in 5 years but thats half decade later. and you wonder about Vod.... Airlines and Oil companies are also doing better than BT today.
These issues existed when share price went up to £5. BT should fight their corner harder. Government threw money at Easyjet after they paid dividend. Many companies pay their staff through government furlough scheme. How come BT which is providing essential services can’t even get support to raise fund in such a cheap money market. I am trying to see the positives but since Jansen took the office last year, BT lost over 50% of its MC and now the dividend.
BT need cash to get ahead of competition and dividend suspension is not the main concern. We can live with that. As an investor I would not change my positions because of decrease in share price unless the fundamentals have changed dramatically. However, IMHO BT betrayed trust of many long term investors by suspending the dividend so abruptly and breaking their pledge to hold dividend by the end of this year. They should have kept a balance and had better understanding that BT is an income stock. They are far from growth company, a mature company with no unique or exclusive product, no licencing income and they have been reducing their international presence. Now the CEO talks about even leaner and more simplified BT, does not seem he has any ambitious or a vision for growth.
I am probably completely wrong but to me such dividend suspension was either poor move or a signal that something is going on behind the scene. Technology is developing fast, there is no guarantee that at the end of 5 years they are not coming back cap in hand for upgrade to the next level.
Where the share price go from here….Board refused to provide financial outlook and in terms of uncertainty it was like reading an oil or airline company’s report. I think for sometimes speculations drive the share price. There is nothing to build up a rational e.g. future revenue, dividend, management quality, pension fund gap,… The best guesstimate would be based on Beta until the next report or RNS. It is hard to say if certain person’s prediction was a lucky guess or inside information but certainly not skill. Taking advice from BB for your investment is a sure way to poor house.
“ I would of thought as we get out of cv 19 and Mkts look for yield again too ”
That’s true. Also bear in mind as the effect of lockdown is not fully measurable, it is likely stocks being valued mainly based on the reported earning levels in the coming months. Raising cash become quite fashionable recently, debt is cheap and sounds bond investors would not mind low yield as long as the business is viable.
“... studies found that four times fewer smokers contracted Covid-19 than non-smokers.”
That study is about a correlation, which is a mathematically driven analysis by numbers. They have not found the causal effect or biological pathways behind the differences. Correlations can be found anywhere with no meaningful link, like human gut microbiome and mouse testical size. Even if it is true , that is about nicotine as biochemical substances and PATCH, nothing to do with smoking.
Are you serious? Virus impacts lung function and smoker’s lung is much more vulnerable to any infection. This is beyond other risks threatening supply chain, production and consumers purchasing power..... Unbelievable !