Forum Archive Index - June 2000

["Ben Dutton" <bendutton@sharechat.co.nz>]

Hi Mark,

Sorry - I should clarify - I didn't buy TEL as a long term hold, but rather
as a trade.

I too share some of your concerns with regards to TEL - it just seems
incredibly cheap at its current price and I suspect that it may bounce back
over the next couple of days.

Best Regards

Benjamin Dutton

----- Original Message -----
From: Mark Hubbard <mhubbard@es.co.nz>
To: <sharechat@sharechat.co.nz>
Sent: Thursday, June 22, 2000 5:52 PM
Subject: Re: [sharechat] ril visits colony for two weeks


>
> 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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