Is Telstra (finally) cheap?
Only 12 months back, Telstra (ASX: TLS) shares were trading at around $5.00. The fall since then has been precipitous. Which has got a lot of investors asking: does it finally represent good value?
Tim joined Montgomery in July 2012 and is a senior member of the investment team. Prior to this, Tim was an Executive Director in the corporate advisory division of Gresham Partners, where he worked for 17 years. Tim focuses on quant investing and market-neutral strategies.
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Ray
:
Tim, you have the beginnings of an interesting study. However, I feel to be useful, one needs to study the qualitatives (as a minimum) and quantitatives of some others you have listed. SCG (the top performer) is one that has dropped over 20% since its high in July last year but sports a div of over 5% with minimal franking. So why are those institutions supporting SCG? One may expect too much from following this study? Are you running with the herd?
kumar
:
Tim
Many Thanks for your above article.
Wondering if you have reviewed the valuation on Telstra and whether you would call it a buy now-?compelling valuation since this article was written.
Thomas
:
Tim, you might make also draw the conclusion that as Telstra has changed its dividend outlook those investors that are currently underinvested (Institutional) may increase their holdings. While I find the low percentage of institutional holders interesting, I am not sure the consequence is clear.