Telstra and JB Hi-Fi

I hold shares in Telstra and JB Hi-Fi. Both have dropped in price. Do you feel they have bottomed, or is this a good time to take a loss?

 

Thanks

A: Thanks for  the question.

 

I am not bottom fishing on Telstra, but becoming interested around $4.00. The last 50c has been incredibly sudden, and my guess is that it will do a lot of work around $4.00. If Telstra cut the dividend from 31c to (say) 20c – this would put them on a yield of 5% at $4.00.  A bit like BHP – a dividend cut might actually be good for the stock.

 

JB Hi-Fi is in another category. I really like it at these levels. It is being impacted by the “Amazon scare”. I am a buyer.

 

Regards


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