Orange Share Discussion Threads

[johnnyamerica] 26/2/2002 10:15

2002-02-26 09:31
RPT STOCKWATCH Sanford Bernstein cuts Orange rating on France Telecom debt

Company: FRANCE TELECOM

RPT STOCKWATCH Sanford Bernstein cuts Orange rating on France Telecom debt
(Repeating to correct spelling of broker first name to Sanford from Samford)
LONDON (AFX) - Sanford Bernstein, the US brokerage house, has adopted a more
cautious tack on Orange SA amid concerns that that there will be little upside
in its share price until the ongoing debt problems at France Telecom are
resolved - which could see its parent company forced into an equity issue.
In a note published today, the US broker warned that Orange will remain
inextricably linked to France Telecom until a "substantial part" of the French
incumbent's problems are resolved.
Sanford Bernstein said although Orange has a very strong franchise in the UK
and France the spectre of an equity offering from France Telecom makes it almost
certain that Orange cannot outperform until its parent company's problems are
resolved.
The broker now feels that, under almost any scenario, France Telecom will be
forced to issue equity to make any meaningful progress on its debt burden. As a
result, it has cut its price target for France Telecom back to 35 eur from the
previous 45 eur.
But despite the ratings downgrade for Orange and the price target reduction
for France Telecom, both stocks were propelled higher in morning trade by the
return of interest in the TMTs after Nasdaq's strong gains overnight.
By 8.55 am, Orange shares were up 0.09 eur, or 1.42 pct, at 6.45, with
France Telecom 0.44 eur or 1.54 pct higher at 29.07 eur.
nm/jmh/cw
NNN

[johnnyamerica] 26/2/2002 10:07

Orange is now down below 400--52 week low.

[johnnyamerica] 26/2/2002 10:04

Orange is below the 400 level. Whilst long buyers are buying in small volume to try to prop up the price, it looks ready to drop. This is an excellent shorting opportunity, IMHO.

[craigwaites] 25/2/2002 18:49

I'm on tenderhooks waiting to buy

[johnnyamerica] 25/2/2002 10:59

It's hard to say--this is the lowest it's gone. Could be in freefall.

[m.a.d] 25/2/2002 10:35

still going down looks like 350p is the target for the bounce

[johnnyamerica] 22/2/2002 18:10

Be my guest Craig. Snap 'em up! Down 16.5 today and finishing below 400, which is I believe the post Sept. 11 low. Don't seethe too much! I ate a long myself on EXD today.

[bigron] 20/2/2002 00:54

i wait with baited breath....currently short VOD cfds .Value of zero pence would suit me fine.Nice idea!

[jimmylaw9] 20/2/2002 00:51

seems a crazy area to go short after such a long fall!!!!!

[logica2me] 20/2/2002 00:49

Getting back to OGE, there is no reason why she won't bounce off £4 and head back up - see chart - end of thread.

[logica2me] 20/2/2002 00:45

Watch and see.............

[bigron] 20/2/2002 00:41

Logica....both you and VOD have a case of enronitis.VOD may have substantial debt....but cash flow easily services interest obligations.Relax

[logica2me] 20/2/2002 00:38

Did I say I was listening to city ADVICE? No - just commenting that people with all the money (fund managers in London) are NOT confident buying, so give me one good reason why VOD will not hit 50p before going bust?

[bigron] 20/2/2002 00:36

City advice ......you jest?In the main a hopeless bunch.Agree they are good trading share both long and short.

[logica2me] 20/2/2002 00:33

JUst remember, VOD wrote off 5 billion (see last results) and in many peoples opinion 3G is just a gimmick, not a moneymaker.

Speak to anyone in the city - nobody is confident going long on VOD with real cash - great trading share though.

[logica2me] 20/2/2002 00:28

Dreadful English?

[logica2me] 20/2/2002 00:26

bigron - read the balance sheet

Thats what they all said about Enron..............

[bigron] 20/2/2002 00:22

...not to mention dreadful english!

[bigron] 20/2/2002 00:20

vod go VOD go bust.......sheer nonsense.

[logica2me] 20/2/2002 00:16

Short VOD instead - they could potentially go bust.

[sanc] 20/2/2002 00:16

Actually, just looked at the trades and it seems the shorter arn't there. Anyway info regarding the above please.
:)

[sanc] 20/2/2002 00:14

I read on one of these threads the other day that the shorters were moving to Orange.

Can someone remind me who posted this information please :)

Latest -17p @ 400p (-4.1%)

:)

[johnnyamerica] 19/2/2002 16:12

Interesting right now--it has a spread of 9 points. This might be because the MMs want it to go a certain way, or because its giving a wide berth for the activity in France, where the real action is.

[johnnyamerica] 19/2/2002 16:08

Yes, it is heading north a bit, cut the loss to 11.5, then sank again to 12.5. This is the crucial point. I think a 40 point jump north would say that it's a bounce and 20 points south would say that it's going way south. Naturally, I've bet on the south part, so please take this opinion with a grain of salt!