Sunday 9 December 2018 | ShareProphets: The one stop source for breaking news, expert analysis, and podcasts on fast-moving AIM and LSE listed shares
Sunday Long Reads: Bitcoin at sea, China propaganda, Left behind in Nazi Austria, Anthony Bourdain, Poker ETG
Fully listed BT (BT.A) is the largest holding in my small collection of dividend munchers by value, although for the purposes of the portfolio it is marked as one unit, along with Centrica (CNA) and ITV (ITV). Vodafone, the fourth member, is half a unit – thank goodness! Yesterday’s interims went down very well with the market, which marked the shares up to around 267p at the peak, and closed at around 260. The shares haven’t been this high since last January and you have to go back to last October before you see an extended period of higher prices than that.
It is amazing what a 2% rise in revenues and some mumbling about a top end of range ebitda performance can do but - as I write - almost perma-dog BT Group (BT.A) shares are up over 6%. I should not be so cynical as I have liked the shares for a while as last expressed at length HERE. Today's update though feels like a corner has been turned. I say this for two reasons...
I note a report in the Times which tells us that US hedgie Greenlight Capital has been building a stake in BT (BT.A) with a view to pushing for the sale of Openreach. ShareProphets readers may also be interested to note that Greenlight and its head honcho Mr David Einhorn have been in the news recently as a bear of Tesla – so since it short a stock I don’t like and long one that I do obviously I take the view that this is a genius outfit!
It has been a busy, busy week and sad sacks like me are going to be bent over a hot laptop during the weekend catching up with the multitude of earnings numbers published by corporate names around the world this week. Turning to London-based results specifically, some good news within the UK market today for the old stalwart BT Group (BT.A).
Chris Bailey is away, so can’t enjoy his ouzo o’clock moment here on ShareProphets. Instead, that falls to me. Back on May 10, when covering the full year results of BT (BT.A), Chris wrote: …the CEO - who surely the new Chairman is considering whether to keep or not. I, on the other hand, noted only last week that there looked to be a battle going on in the boardroom. So I’ll enjoy my ouzo (but I’ll save Chris a glass)!
Hello, Share Pingers. One of my most interesting shares at the moment is BT Group (BT.A). Like my learned colleague Nigel Somerville, I am stuck with a lot of its shares - which have done badly of late. The double whammy for me though is that they are now less than 210p, a few years ago I was gloating over a price of 500p. Which was nearly my original stake. And now I am out of profit.
I noted the other day that BT’s (BT.A) results hadn’t gone down very well in the market. The shares had been climbing nicely since I bought at 225p, but results day and the follow-through saw them marked down almost as low as 200p. Apart from wishing I’d waited, I’m happy to hold on for now – and collect the near-7% dividend. But I wonder if the new chairman is beginning to have an effect, in the light of a news article from Bloomberg.
I concluded my last update on telecoms giant BT Group (BT.A) with the observation that:
Looking down my shopping list for dividend munchers in the wake of our mini-crash (see HERE) I see fully listed BT (BT.A) on a yield of 6.82%. I’m no expert in these large-caps (so this is NOT a tip!), but that seemed pretty tasty to me and worth a bit of a look – my first port of call being what the ShareProphets large-cap professor, Chris Bailey, had to say (see HERE).
I had a bit of a rant yesterday about three FTSE-100 behemoths that were dividend-heavy but consensus buys and not offering - in my opinion - value. I don't think BT Group (BT.A) is in this grouping however despite being dividend-heavy and suffering a falling share price today because basically it is very out-of-favour.
Even large, FTSE-100 shares can go through periods where seemingly every piece of news brings about a decline in the share price, and the company seems to be hit by one negative revelation after another. But as long as there isn’t anything wrong with the underlying business, then often these are just temporary blips and can offer the sort of recovery opportunities, and potential returns, that you don’t see often with outfits of this size.
Hello, Share Twangers. A share which has given me a lot of pain, though (thankfully) I don’t think I’ve recommended it to you very much, is a telecoms giant which has seen better days. In fact, under two years ago the shares touched a fiver. Nowadays, they are less than three quid. But analysts at Barclays have just repeated their fairly long-standing target of 450p, which would cancel a big chunk of my loss.
Last week it was the Sunday Times' chat through on personal debt which induced my breakfast coffee to be consumed in an unorthodox fashion. Today it is pension deficits - that quiet corporate horror show.
Hello, Share Pushers. You can, like my colleagues on this illustrious website, be among the best share experts in the world, but some brickbats you cannot see coming. One such example is the big wobble of BT (BT.A) stock when it was announced in January that something was not quite right about the company’s Italian operation.
As the part of rural Wales I was staying in during a good chunk of the Bank Holiday weekend apparently is intermittently covered by the leading mobile network recently purchased by BT Group (BT.A), I had to return to England to surprisingly wax lyrical about the telecoms giant, as the dearth of WIFI forced me to buy an antiquated media device called a newspaper. Within its grubby pages I read that shock-style headline that 'BT threatens fatal blow to final salary pensions'.
Whenever you get a big drop in the share price of FTSE350 companies it can represent a buying opportunity, depending of course on what caused the drop in the first place.
Hello Share Nibblers. I took a big block of shares in BT (BT.A) on the recommendation of Alan Green of Brand Communications about four years ago. The stock rocketed soon afterwards, nearly doubling my stake. Pretty impressive for a Footsie member, I think. Then about a year ago, it dived for some reason I forget. And as usual when a ship wobbles I was still aboard. Never mind, I still enjoy a bumper paper profit on the stock, just not one that’s quite a chipper as it used to be. But things are changing.
Hello Share Sippers. One of those dynamic companies which is never out of the news for long is BT (BT.A). The reason is obvious, the country relies on it not just for telephone land lines but for access to the internet. It’s an odd situation for so many companies to be reliant on another one for a service nobody can do without. And BT, if its rivals are to be believed, has taken advantage of the fact.
Hello Share Plasterers. Before the Brexit result, I opined that shares would topple, but then make a quick recovery. I didn’t realise then how the bounce back would be much more than a recovery. Shares reached an 11 month high. And yet the BBC continue to broadcast doom and gloom comments that the British economy is now in a perilous situation. The healthy Footsie belies that sort of talk.
Hello Share Twitchers. BT (BT.A) made a big announcement this week. It is going to spend, spend, spend on improving broadband and phone coverage. It probably had to do it because the watchdog of the industry has thought about splitting it from its big money spinner, Openreach, unless BT makes improvements for the public. The rivals, like Talk Talk (TALK) and Sky (SKY) are not likely to be impressed by this initiative, though.
Hello Share Helpers. Not long to go now before Santa calls. But I’m not sure it will as sumptuous a Yule celebration as normal in Stacey Towers. It’s not really been a good year and that applies to most of us, I fear.
Hello Share Smoochers. Even an eternal optimist like moi has to admit that it’s all a bit depressing at the moment, even if we’ve just had a couple of fairly good days.
Hello Share Pickers. When Slater the Great wrote his fine book Zulu Principle in 1992, he could not have known that my book Share Attack, just out (get your ShareProphets Reader Offer Here), would be even better. In my opinion, anyway.
There is no doubt in this vintage punter’s mind that Britain is getting slobbier, lazier and fatter all the time.
Hello Share Shockers. I’ve regaled you in this modest column before with some of the best advice you could ever pick up. That is: to track down and invest in those star companies which grow their profits every year that comes round.
One of my star performers is BT (BT.A). It's been rocketing through new all-time highs for some time now.
If you want to make money in large cap shares then you have to spot the big changes. Deals can be such transforming events…and updates from two big FTSE-100 heavyweights over the last day or so are noteworthy.
Hello Share Plinkers. What is the most reliable way of telling if a company will keep on piling on share value and doling out ever fatter dividends? Wouldn't you like to know? Well, we all would.
Hello Share Bouncers. A wedding guest once asked me for an opinion on a football game. When I said I couldn't give a fig for sport, he asked incredulously 'But what do you do with your spare time!'
Money doesn’t grow on trees, and the money to fund BT’s (BT.A) £12.5 billion takeover of EE has to be found from somewhere. So BT is potentially preparing a raft of measure to find the money. There is speculation that this includes a £2 billion rights issue. A further £3 billion could be raised in the bonds markets.
It has been announced that BT (BT.A) is in talks to take over EE in a massive £12.5 billion deal, giving the telecom giant access to the fabled ‘four play’ or ‘quad play’ market. A 12% stake in BT would be given to Deutsche Telecom, the partly state owned German operator, who is joint owner of EE with Orange. Deutsche Telecom would also receive a seat on BT’s board.
BT (BT.A) shares are currently trading at 417p, with a dividend yield of 2.62% and a PE of 16.34. This is a big leap forward from a price of around 362.5p in early October.
Hello share varlets. BT (BT.A), or British Telecom as I continue to call it, is a very ambitious company. Consequently it has a very exciting share.
Having sold its mobile business some years ago, BT (BT.A) is in talks with Telefonica about the possibility of buying the O2 mobile business for strategic reasons; to enable it to enter the growing mobile, smart phone data transmission market. That makes sense given that BT has a gap in its service offering in mobile communications and given that it is also a strong internet service provider which needs to expand demand for its services.
BT ‘s (BT.A) reported ‘statutory’ earnings showed a 28% drop in the three months to 30 September, qualified by the company’s management as a 13% rise in adjusted terms. In line with the adjusted figure for earnings, the interim dividend payout was hiked up 15%.Such volatility and contrast between reported and adjusted earnings helped to ease the shares down.
BT (BT.A) shares are currently trading at a price of 387p offering a yield of 2.81% and on a PE of 14.99. So should one buy, sell or hold?
Hello Share Fans: How many different companies do have in your share bag? Have you nabbed so many that your chances of really striking it big are diluted?
Between April 2013 and February this year the BT (BT.A) share price rose 58% to 421p; since when it has retreated to a share price of 363p last seen. Even there, it is up nearly 36% over a year on a market that has risen by just under 5%; interesting for a share that has a Beta of 90.
Hello Share Twisters: British Telecom (BT.A) is rattling along, beating new records every day. Yes, I know the old Footsie is on a roll (as I write this). But it is still outperforming the Footsie
Hello Share Shovers: There are some companies that you just know won't let you down. There are no guarantees of course, but you still get that strong feeling.
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