Interesting paregraph:
Global Services adds very little incremental value to BT and has limited growth potential. It may have synergies with other parts of BT but selling this too and using the proceeds to pay down the still very large £5bn pension deficit would create value by removing a source of worry for investors. I would expect the valuation of the shares to rerate upwards if this happened.
"I’m a long term holder and obviously pleased with any rise in the SP. But is this market for real ? Is it being regulated properly? What was the news today that wasn’t expected to cause such an 11% rise? London market is a farce"
It was the removal of fear..
https://advanced-television.com/2021/11/02/bt-favoured-by-bank/
Notice period for Sky maybe. Or is it that the next period of football rights start from 22 to 25? Strange that a deal has apparently been agreed but may not get announced for up to 4 weeks. Presumably the Q2 results won’t confirm either.
https://simplywall.st/stocks/gb/telecom/lse-bt.a/bt-group-shares?r=/user/profile#valuation
DYOR but I would buy at about 11am on results day just before the price starts to recover a bit. I have loads but am not bullish in the short term. You v CG oils wait until just before Q3 results if you prefer.
I was on an internal BT Q&A with Philip Jansen last week. He didn’t let on too much as you’d expect but based on his demeanour I would say he’s not very bullish about the Q2 results but seemed confident all will turn good in the 2 to 3 year period. Interestingly he said that He has the backing he needs to be competitive against the completion and is confident BT can compete. My own view is that BT needs to cut out many more managers and keep driving down costs as quickly as possible to enable that competitiveness. From an insiders view it all looks to slow to me.
Does anyone think that the recent press articles about Sky investing in VMO2 might just push BT along a bit with it's plans to sell off a bit of Openreach with Sky as a possible investor? I would have thought BT would prefer this rather than the possibility of losing Sky as a customer over the next few years.
From that article:
An internet service provider with access to the nation’s entire fibre footprint, will be able to negotiate the best rates across and operate the most efficient marketing budget – ultimately lowering prices for consumers.
Watch the rise up to Nov 23 then. Sell on 22nd..
I asked BT if they could tell me why the consensus numbers have stayed the same for the last two months or so and they very quickly came back with a response including the following:
over the last few weeks, none of the analysts covering BT have updated their numbers.
One or two more updates before the Q2 results. Hopefully an analysts update before those.
I do gather that many here wouldn’t trust an analyst put together a shopping list so maybe it’s all irrelevant.