Question: 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?
Answer: I am not bottom fishing on Telstra, but becoming interested around $4.00. The last 50 cents has been incredibly sudden, and my guess is that it will do a lot of work around $4.00. If Telstra cuts the dividend from 31 cents to (say) 20 cents, 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.