Member Info for Mr_Rooster

“ Something is messed up somewhere and the market ...”
That’s my understanding too, both the rally and falls are not stock specific. The chaos is messing up with usual indicators. Talktalk was down despite the good trading results today. BT even with pessimistic forward profit of £1.4 billions should have greater MC. The other day on CNBC, they were saying market might become less chaotic after sport betting opens up and people start going to work.

Velo,
Hertz, whiting, CHK, ... file for bankruptcy and their stock rally 200-450% during the “WEEK” not for the day or hours and you spend valuable time trying to understand this market. I am not sure if any conventional technical or fundamental analysis would work in this infected market.

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.

This isn’t a takeover bid, is it? News is about selling stake in OP to raise cash. Why should that be seen as insider deal for personal benefit.

This isn’t a takeover bid, is it? News is about selling stake in OP to raise cash.

Fleccy, actually both has been reduced and cash flow was considerably higher.

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.

Unlike BT, they gave financial guidance too. I think they acted like a grown ups and didn’t runaway from their responsibilities.

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.

Nige you don’t get it, don’t cha? Professionals short a stock on the way up for a mere 13p profit.
Anyway, it is monopoly money she a got loads of it.

Dreamachine, don’t take that muppet serious. She only got a demo account, can’t afford live account with universal credit.

For an ex professional trader £50/point for a trade with such a certainty is just disgraceful! Why make £650 not £65000? FFS trades with 100% certainty doesn’t come around so often.

A wise member recently said on this BB, Toff is like “an annoying ex”

EmmJane, nice posts thank you.

“ 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.

“BT has to adjust to the market’s reality not their’s. “

Toffee, what the hell is that supposed to mean?

“ Given the debt and pension deficit is now Three times higher that BT’s market capital value ..”
The real value a company is very different from its stock market cap. Learn the basics.

“ companies that borrow money to pay dividends....”
Toff, Enlighten us when was the last time BT borrowed to pay dividend and give us some details instead of babbling bull-s**ts.

I really like and welcome views that are different than mine as I learn from it but yours are pure .....

Thanks Fleccy! Quite handy for quick comparisons.

Are not the results better than previous quarter (Dec 19)?