Forum Archive Index - February 2004

["Rockbottom" <rockbottom@ihug.co.nz>]

Thankyou Phaedrus for that chart. If you convert the figures to NZ$ you will
find the Telstra shares have almost always had a higher share price than
Telecom.
There are of course exceptions In April 2000 the prices were about the same
and in Apl, May, June 2003 Telecom broke through the Telstra price. This has
now happened again.

The average Telstra premium in this period is about $1.10 but has fluctuated
wildly between -20c to over $3.00.This variation has given the oportunity
for traders to switch from one to the other. Taking history int accoumt it
would be profitable now to switch to Telstra.

Unfortunately for this scenario there may be some fundamental changes taking
place. Snoopy has commented on the higher dividend yield from TEL and
according to Rockbottom's theory of relativity TEL should be the preferred
share (and high up the list of shares to buy).

But you can't buck the tide of history. So sell Telecom and buy Telstra for
the short run. Longer term investers should buy Telecom.



Rockbottom

discl Own TEL & TLS


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