Forum Archive Index - June 2000

["Mark Hubbard" <mhubbard@es.co.nz>]

From: Ben Dutton <bendutton@sharechat.co.nz>
To: <sharechat@sharechat.co.nz>
Sent: 22 June 2000 5:25 PM
Subject: Re: [sharechat] ril visits colony for two weeks


> Yes it is strange that our tech sector hasn't improved in line with the
> NASDAQ - I certainly was expecting better performances from ADV and ITC.
> Sanity seems to have returned to the US market as well - the companies
that
> never came close to deserving their lofty valuations are now in many cases
> trading below their cash asset value - check out this article from today's
> Wired News for more info about that:
>
> http://www.wired.com/news/business/0,1367,37111,00.html
>
> There's been some discussion today about TEL.  I have to admit that even I
> couldn't resist the current price and picked up a swag at $7.38.  TEL
hasn't
> been trading around these levels since October last year - it was also
only
> a couple of weeks ago that (and this is from memory - pls correct me if
I'm
> wrong) Goldman Sachs recommended it as one of the best telco BUY's in
Asia.


I still can't see how TEL is such a good buy due to the satuation of its
home market now, increasing competition, and the expense of getting
offshore. Like RBD it will remain a good cash cow, but with no substantial
growth prospects - and look at RBD shares, which IMHO usually trades at
about a 20-30% discount to fair value (perhaps TEL is going that way?).

Admittedly, my foray into Telstra is doing little better as they have some
management issues which seem to be hindering them, plus the inability to
issue more equity unless the Aussie govt. commits to finally selling down
its remaining share - however, again, IMHO, over the long term I still feel
they are the telco with the far better medium and long term growth
prospects.

Interesting times I guess.

(I hold TLS, but not TEL).


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