The Blue Chips v The Second Line Telecommunication Competitors

The Blue Chips v The Second Line Telecommunication Competitors

Appearing on “Your Money Your Call” on Sky Business last Wednesday evening was an interesting and mostly amusing experience.  The subject of telecommunications was touched on and my fellow panelist espoused the attributes of Telstra and its blue chip qualities.

At Montgomery Investment Management we can’t make Telstra “stack-up” – our assessment of their intrinsic value is well below the current $4.95 share price.  Within the telecommunications sector, we have always preferred a number of the second line competitors.

We thought we’d take this opportunity to compare the share price movements of the major Australasian telecommunication companies with a number of those second line competitors over the past five years and let you judge the preferred exposure. Note this table compares capital values only, and excludes dividends.

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Chief Executive Officer of Montgomery Investment Management, David Buckland has over 30 years of industry experience. David is a deeply knowledgeable and highly experienced financial services executive. Prior to joining Montgomery in 2012, David was CEO and Executive Director of Hunter Hall for 11 years, as well as a Director at JP Morgan in Sydney and London for eight years.

This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.