Forum Archive Index - April 2002

["ryanrite" <ryanrite@xtra.co.nz>]

Being a telecom share holder and supporter the south pacific cable returning
them over 200 million last year and now nil for maybe 2 years what ? what?
but why? not a word from telecom about this; why not? Keeping the market
informed are they?
As a shareholder maybe its time for a change at the top
Maybe shareholder may be priviledged to know what is happening and may not
be selling out?
Athol
----- Original Message -----
From: <tennyson@caverock.net.nz>
To: <sharechat@sharechat.co.nz>
Sent: Wednesday, April 03, 2002 9:20 AM
Subject: Re: [sharechat] Tel


> Hi hugh,
>
> >
> >
> >Maybe I should be allowed to air a dissenting view - I'm famous for
> >it ;-) Some deeper thoughts there Barry and Kim, rather than just
> >accepting the conventional wisdom.
> >
> >
>
> Mind if I 'plunge down to your depths' and have a word ;-) ?
>
> >
> >
> >what we have been witnessing is the commodification of the products
> >that Tel sells -their sales have come to depend on price - and
> >competition is hot.
> >
> >
>
> And the duplicate landline network all over the country is?
> And a cellphone network with the greater coverage is?
> And the competition for the new 027 network is?
> And the carrier you can go to while still retaining your old number
> is?
>
> 'Price is a factor' does not translate to
> 'their sales have come to depend on price'
>
>
> >
> >Their ratios aren't too hot either particularly
> >the gross dividend yield %
> >
>
> 20c per share is still a yield of 4% (based on a shareprice of $5.00)
> which equates to a pretax yield of 6%.  That is still well above what
> you can get in the bank.  And this is assuming they manage to
> squander all their retained earnings which I haven't mentioned.   Any
> growth in the business will boost this 65 return over time.
>
> >
> >and the pressures have started to produce
> >some questionable accounting practices to meet targets.
> >
>
> I think Alan Robb had something to say about this, in an NBR article
> the short version of which was on 'Sharechat'.   Something about
> dropping the interest charges because a business unit wasn't a
> significant subsidiary but including the consolidated profit because
> the profit was significant?   I must admit I didn't like the sound of
> that!   Perhaps Ben or Phil will post the link?
>
> >
> >
> >The South Pacific cable is no longer doing well
> >
> >
>
> A temporary glitch, I feel
>
> >
> >
> >and they are being nibbled away at in business urban areas by fibre
> >optic competitors while Tel seems happy to sit on its copper wires
> >with a bit of a tech assist that won't win in the long run.
> >
> >
>
> Perhaps they are waiting for the high tech competitors to go belly
> up?   I'd much rather see them buy the stuff that someone else has
> paid for 'below cost' than splash out huge amounts of money on the
> latest technology with little prospect of ever getting a return on
> it.
>
> >
> >
> >So, St Theresa is a good CEO. They say. Is she as good as Rod Dean
> >was? I recall reading one of their reports when I held them and
> >looking at the executives and thinking hold on; here's a CEO
> >qualified in Pol Sci for God's sake, and their Chief Engineer is
> >qualified in Civil Engineering not Electrical Engineering & & - is
> >this the Mad Hatters Tea Party?
> >
> >
>
> Deane was a hatchet man who cut costs under instruction from the
> american owners of the time.  His style was right (too right?) for
> the time, but his time in the CEO seat is past.   And let's not
> sterotype people depending on what they did for their first degree at
> university 20 years (plus) previously.
>
>
> >
> > "They must be cheap at this price" Why? Surely that depends on
> >their future performance not their historical prices.
> >
> >
>
> Their, I think appealing, dividend yield is well covered by their
> earnings.   They aren't going to be a stellar performer, but look at
> the downside risk!   I don't see much, and sometimes when the
> sharemarket takes a tank it is good to have some such shares in your
> portfolio, as I see it.  SNOOPY
>
>
>
>
> ---------------------------------
> Message sent by Snoopy
> e-mail  tennyson@caverock.net.nz
> on Pegasus Mail version 2.55
> ----------------------------------
> "You can tell me I'm wrong twice,
> but that still only makes me wrong once."
>
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