Telstra

Last year I bought TLS shares following a good recommendation from Charlie Aitken. I initially paid near $6.00 per share. As you would know the bottom fell out of TLS share price with news of a new carrier.

I took the opportunity to buy more and have been able to average down the cost to $5.00 per share. I am still losing around 13% on my holdings of $280,000, which I know is too much for my portfolio. I would, however, prefer to keep them until such a time when and if they reach the upwards of $5.00 per share.

Any thoughts?

 

A: Thanks for the question.

I haven’t really changed my view on Telstra since my last report of 24 April (see https://switzersuperreport.com.au/is-telstra-a-buy-yet-again/) . Since that report, the ACCC has decided not to declare roaming, which gave Telstra a boost and took it to the $4.40 level.

Since this decision, it has largely traded in a very steady range between $4.30 and $4.45.

I think the market needs to see:

  1. a) more from Telstra about its capital plans (which may include news about dividend policy);
  2. b) progress on closing the NBN earnings hole.

 

Regards


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