[LINK] Telstra - taking its ball and going home.

Adam Todd link at todd.inoz.com
Tue Aug 8 15:59:08 AEST 2006


At 02:09 PM 8/08/2006, Frank O'Connor wrote:
>Yo Ace,
>
>At 1:54 AM +1000 8/8/06, Adam Todd wrote:
>>You know, when the first round came out at about $6 wasn't it?  I told 
>>people they were over inflated and would never get the return they were 
>>being sold.  I don't think the shares have ever been higher than the 
>>original release price from what I recall and I'm sure someone mentioned 
>>this recently.
>
>The first release was about $2.95 all up from memory - payable in two 
>instalments ... in 1997.

I thought it was about $3 per installment!  But then I didn't give it a lot 
of attention because ....

>It went stellar shortly thereafter (to about $8) and then faded to the 
>price asked at the second Tranch ($7.20 odd). Then Ziggy and Mansfield got 
>to work and it dropped steadily to about $5. Then Trujillo and his heroes 
>got to work and it dropped to about $3.80 so far.

At about the same time we had AMP shares that went from $0 we paid, to $32 
we sold :)  Glad I didn't trade those AMPies for Telstras :)

>>I'd suggest not selling the shares to be honest :)  Unless she needs the 
>>extra $10 cash, she's better just leaving them and taking in the 44 cent 
>>a year dividend.  One day, maybe, the value of a Telstra Share might be 
>>worth the fee to cash them in :)
>
>The dividends were about the only thing that kept me from advising my 
>mother to sell a year back.

Hmmm, yes.  Exactly.

>That said ... with the share price still dropping, no plans for the future 
>and little in the way of any ideas evident from management (other than 
>'more of the same') Telstra are looking REALLY unattractive at the moment.

Until the SALE kicks through then the international market is going to 
start buying up and the price will rise.  Lets face it, Australia might not 
be much of a revenue blip on the world market, but better to own it all 
than have a third party control it :)

>Telstra got taken over by its bean counters and tax advisors about 20 
>years back ... and everything has gone down hill since then. Then they got into

Yes and they still don't know the difference between DR and CR :)

>Now they want any regulation that affects them repealed, so the benefits 
>of the 'competition' that we've seen so much of above can be expanded.

Ahh yes, the regulations they demanded to ensure their protection, is now 
inhibiting them as the markets work around them and the regulations.  So 
repeal the regulations, against Telstra, but impose them against the 
competitors.

That makes the competitors desire to purchase Telstra to control it even 
greater.

But you know I suggested, when there were like 1300 ISPs in the Australia, 
that they should ALL pool together and BUY ALL the Telstra shares.  Nuff said.

>Silly me. To my mind comms is as much part of the national infrastructure 
>as roads, hospitals and schools ... but Telstra (and the government) 
>obviously knows better.

Sell it off.  Why have the liability and the need to supply.

>Net result: We're left in a slowly failing 1970's time warp whilst the 
>rest of the world gets into the 21st century.

Oh Japan is two centuries ahead of Australia.  Really.  In TV and Comms.

>And yeah ... I'll still be advising my mother to sell on the weekend.

ROFL!





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