I carried out further research on BUUK with thoughts of it being a small investable company, and failed to find it listed in a share index. I believe that the information that I posted earlier is not particularly relevant to my BT Group investment, as BUUK are not a significant FTTH provider. They are more of a small general "last mile of infrastructure" provider offering a wide range of services - for example water piping and electrical cabling as well as broadband fibre connectivity.
Please excuse my previous post and disregard it. Why "Seeking Alpha" bothered to send out this information escapes me.
... about Nanoco's products and their potential applications on here as always.
Recently, I am harbouring a measure of concern about the company's share price, however. It seems to be downwardly drifting to lower territory, almost every day, before recovering to a relatively low level (11p or lower) by the close of trading. Is this a low volume "tree shake" ahead of an anticipated share increase, or does it reflect genuine concern at the apathy currently exhibited by the company's leadership team? A number of smaller companies have undergone a catastrophic share price collapse in recent weeks and months. Do Nanoco investors have anything to fear, or am I over-reacting to the recent demise of a number of small cap companies in the same index?
Sky Broadcasting has set its first non-BT wholesale broadband deal, inking a plan to sell service on BUUK Infrastructure fibre.
This builds on existing arrangements between the two companies with the new deal focusing on availability of Sky TV in new build homes. BUUK currently serves more than 1m homes with over 30,000 discrete networks. Sky originally began exploring wholesale deals outside BT in the spring.
Agreed, although I always see it as a positive sign when the CEO and other board members purchase large volumes of shares. The same might be said about BT's previous CEO who held a massive shareholding. I am always puzzled on discovering that I sometimes have a significantly greater number of shares than some directors of companies in which I an invested. I guess that I am old-fashioned in that I have always committed full on to any organisation that chose to appoint me.
This is meaningless as far as I am concerned. The share price has been "free floating" within a trading range, mostly with small trading volumes, for some time. The positive message from the CEO last month was equally meaningless as it had no impact on the share price whatsoever. He merely reiterated well-known information - almost as though it were quickly dashed off just to get the job done.
Currently, I regret investing here. Although my investment and "paper losses" are not significant within my portfolio, it would appear that very little has happened since I invested over two months ago. However, should the share price rise to 20p+ which is my sell target, I shall consider Nanoco as one of my better investments. Regards.
Thank you Avrohom; additionally for the advice that you offered a few weeks ago, which I have taken on board. I totally agree with your comment on the BT Group share price. I abandoned this particular ship when it was under the control of the previous CEO and Chairman a long time ago. I recently reviewed my investments over the last four years ago to discover that my losses with BT Group were not as great as I had supposed, so that it would appear that I sold at an appropriate time, when the share price was on a downward slippery slope.
I re-invested a short time ago, too soon as it turns out, but one never knows with share prices. Part of the reason for re-investing is that I had followed BT Group activity for some months beforehand, and that I have a great deal more confidence in the ability of the current CEO and Chairman to turn the business around than I had in the previous incumbents. I am currently in the red (far less so following yesterday's dividend payment), but have every confidence that the share price is close to the floor, if it hasn't already bottomed out. A dividend cut is forthcoming, but this will be welcomed by shareholders if it leads to growth in the company's MCap. My current share price target is 210p ( for an overall 20% profit). If that target is reached, I shall then consider my options. Meanwhile, I intend to remain invested - come what may!
Carrington and thomas65.
Too true, but my investment strategy does not rely on watching share prices on a daily basis (other than when I set some capital aside for day-to-day trading). In the past, I have been too reactive to share prices dropping, and have lost a lot of capital by selling at a loss in order to safeguard my overall investment pot. I am trying to predict how BT Group's current activity will affect revenues and ultimately the share price in two or three quarter's time. Had I done the same with GSK eighteen months ago instead of moving my money around and investing elsewhere, my portfolio would probably be in a more robust position today. Regards.
This is all positive, as far as I am concerned, as I received the main dividend payment at the current rate yesterday. Much of this was already known, although continued positive market reaction to increase the share price back to super-200p values would be a desirable outcome to the ML comments.
Merrill Lynch comments - a summary.
BT Group (BT +0.8%) is likely to increase capital expenditures in order to hold up scale amid ongoing price competition.
A 40% dividend cut is expected along with incremental capex and potential asset disposals, as it deals with the competition, infrastructure buildouts and a growing pension deficit of 21 pence/share.
Lloyds Banking Group is facing an extra bill of up to £1.8bn to cover a late rush of claims for the mis-selling of Payment Protection Insurance (PPI). The bank said the number of claims more than trebled in the run-up to the final deadline of 29 August. As a result, Lloyds said it would have to take a charge of £1.2bn-£1.8bn to cover the extra claims.
It is suspending its share buyback plans due to the uncertainty over PPI payments.
From Credit Suisse:
TPG Telecom isn't likely to get a court ruling on its proposed merger with Vodafone Hutchison Australia before Christmas.
This is despite the fact that the Federal Court hearing is likely to wrap up by the beginning of October. The decision is seen as a key driver for the stock. The merger was blocked in May after falling back from an original provisional decision date of March 28, 2019. TPG filed proceedings looking for a favorable order from the court that month.
Agreed. Mistakes were made in the past, and today's employees have suffered as a result. However, the new CEO seems to be focused on making positive changes to redress the balance sheet. To survive in today's competitive market, BT Group needs to be leaner, and with a range of "must have" products addressed to consumers' prime requirements. There are already early indications that the company is making some rcorrect calls, and future performance in relation to analysts' predictions will hoprfully verify this. For the time being, we can but be patient.
Some interesting comments from contributors earlier today. I was a public sector employee at the time and I recall a similar picture, with (not always the best) colleagues being offered 10 years enhancement enabling them to retire with a pension approaching the maximum amount at 50 years of age. Moreover, they could continue to work to supplement their pensions if they chose to do so. Many did just that. A similar upgrade was allocated to their associated lump sum. Their annual increases were subsequently subjected to an RPI adjustment (higher than the CPI on which current pensions are upgraded ).
Sadly young employees at the start of their careers are disadvantaged as a result of this extravagance, and their retirement rewards will be lower as a consequence. Not only a BT initiative, but applicable in many other workplaces in the public as well as the private sector; the gross incompetence of senior personnel at the time has resulted in an unfair distributions of pension fund money, often without any discernible criteria being applied when the offers were made. Sadly our BT Group investment is less potent than it ought to be as a consequence of the mismanagement of a fund which should in theory be applied equally to all in proportion to their individual contributions.
Not sure chrisabipp, although a positive finish is always welcome. It has still way to go in my view. I would be reasonably satisfied with 170 - 175, at the moment (in relation to my own BT Group investment; unsatisfactory for some investors I'm sure). There was a rapid drop in share price both during pre- and post ex-div, leaving it in an 'oversold' position in my opinion. Previously stated range, with progress towards high 170s in September would represent a reversal as I see it.
I am not disputing some contributors' views that the share price could go lower, although, weighing up recent developments, I don't see a reason for it to happen? In general when I look at the current share prices at the low-end of the annual range for so many equities in the FTSE-100, it would appear that a number of investors have moved their capital to safer havens - at least for the time being. Regards.
I believe that I am in the right place BluePete. This is a very good board at the moment with a lot of first rate posters with interesting opinions, and a deep-seated knowledge of the telecoms industry.
I have no intention of filtering any contributor, as I have always encouraged freedom of speech throughout my working life. A good sense of humour, as in your earlier comment, with no malice intended, makes a positive contribution in my opinion.
What I do not appreciate at all is contributors who are perpetually negative about BT Group and its prospects. What is the point of doing this on a board for BT Group investors? I come here mostly to learn from my peer investors, and to contribute any snippet of information that I have found for myself. I certainly do not want to read unneccessary negativity about a share, which makes up 14% of my investment portfolio.
I have messed up this Summer in buying my equities too soon. However, I am now mostly invested in good dividend payers, BT Group, Vodafone (even after rebalancing, and there may be good growth prospects ahead), Lloyds Banking Group, and IAG, which has hit some turbulence since the issue of a generous dividend coupled with a special dividend. These have been bought at the low end of the annual range, although I now realise that I should have been more patient.
All have proven to be dividend traps although I am currently in profit with two of the four equities. I believe that BT Group will recover to the low to mid 200s in the next year, despite the fact that the prevailing market conditions are not favourable as far as the growth of most FTSE 100 companies are concerned.
This having been said, could I politely request that we stick to positive posts on this board? I see no value whatsoever in talking down a company on what is meant to be a forum for investors in that company. Negative factors impacing on growth - definitely worth a mention; general snipes - presumably intended to irritate others - no value whatsoever in my humble opinion.
I intend to remain with my investment here - at least until I achieve a targeted profit from growth and dividends. It may well take a while - at least a year in my opinion, maybe longer. Meanwhile, if all contributors try and concentrate on adopting a positive tone, even if commenting on factors depressing the share price, it will undoubtedly help us to get through the current conditions that are introducing so much volatility and depressing so many share prices.
I have no serious concerns about the forthcoming B.A. pilots' industrial action. Apparently BALPA were of the opinion that the amended offer was acceptable, but many of the pilots thought otherwise. (See the advfn board discussion for more on this).
There may possibly be a further short term impact on the share price. However, mid- to long-term investors have nothing to fear. The current share price is hugely discounted, and some long-term investors will continue to add at the current price range, and possibly lower. Even without the special dividend, the current annual return is generous when compared with the company's peers, and this will satisfy investors as they wait for a share-price recovery.
Meanwhile, no-one has yet written off the possibility of a last-minute settlement before the strikes, although some travellers will meanwhile have modified their plans. The negative issue as far as I am concerned is the mistakes that the client services team made when informing customers about the change to their pre-booked travel arrangements. I am convinced that B.A. will look to improve on this aspect of their business.
I tend not to pay too much attention to individuals who talk up, or talk down, companies on bulletin boards. They usually have their own reasons for doing this, and rarely do they reinforce their opinions with hard facts other than by stating the obvious. In my humble opinion, the best way forward is to do your own research and build your portfolio on your own market judgements and not on the views of others.
Personally, I wish that these negative individuals would provide useful information, if they have it, and cease trying to influence others by merely stating their opinions. This is the main reason that I visit bulletin boards - to receive facts, by more informed individuals not opinions. This having been said, I respect those, who post positive responses when confronted by the negativity of others.
The IAG share piece continues to stagnate in the low 400s despite the company's financial data suggesting otherwise. Is the ongoing threat of pilot industrial action still having an effect, or is there another reason? There has been no update from British Airways concerning their negotiations with BALPA since August 5.
Most recent statement - issued on British Airways' website on Aug 5, 2019 at 11.20 :
"We have been working with the pilots’ union, BALPA, to reach an agreement on pay and we are continuing with talks at ACAS.
BALPA has yet to issue any strike dates, so we are continuing to run a full schedule. By law they must give us at least 14 days’ notice of any disruption to flights."
This appears to be giving a positive message to the market, although it is mostly a reiteration of already known information, which has been discussed on this board on several occasions. Currently, as investors, we can examine the potential of the company's technological expertise and intellectual property in cutting-edge applications, and I am grateful to contributors to this board for providing new information as it arises. However, until the company converts its expertise and IP into contract wins with regular and ongoing revenue streams, there is unlikely to be a change in the market valuation of the company. It is obvious that Dr. Edelman's rhetoric convinces no-one, and that he and his fellow directors will need to substantiate his words with deeds. The current broker consensus of the company's aspirational share price is 20p. As things stand, I would not hesitate to sell my holding at that price.
The key issues.
1. Revenues more than doubled in the last trading year thanks to the early delivery of income from a major services contract. 2. Revenues came to £7.3m for the year ended 31 July, slightly ahead of market consensus, while billing came to £9.6m.
3. An exceptional credit from a contract liability was largely offset by exceptional charges stemming from various contract specific assets and provisions.
4. The unaudited cash position at the end of the year was £7.0m - an increase of £800,000 over the six month period.
5. The company still expects to be holding around £6.0m worth of cash at the end of the calendar year.
CEO Dr. Michael Edelman said:
"This strong operational performance contributed to the best financial results in the company's history. We remain focused on completion of the current contract deliverables whilst broadening our efforts to seek out other potential new customers in the electronics and display sectors."