Talktalk Telecom Share Discussion Threads

[micos] 03/8/2016 08:27

Is the dividend payment due today?

[quepassa] 27/7/2016 08:02

Whilst TalkTalk would have preferred total separation of Openreach from BT, it appears to me that this is nonetheless a major step in the right direction for TalkTalk.

ALL IMO. DYOR.
QP

[muscletrade] 22/7/2016 07:59

Berenberg upgrade to HOLD this am. Target price 224p(hold on to your hats). Better than a kick in the nuts from haitong though.

[pierre oreilly] 21/7/2016 15:34

Almost every divi paying company on the stockmarket has debt.

[xxxxxy] 21/7/2016 15:30

Dividend=debt, or debt= dividend?

[pierre oreilly] 21/7/2016 15:20

Well the company says it can. I believe it's a criminal offence these days for directors to purposely mislead their investors.

Going back a post or two, i also understand it's a criminal offence for analysts to give out opinion biased to what other parts of their company hold or short - chinese walls and all that. I guess chinese walls aren't very secure!

[xxxxxy] 21/7/2016 15:15

And can afford dividends?

[pierre oreilly] 21/7/2016 15:14

Cry wolf?

When one is said to Cry wolf it is an expression that means to "raise a false alarm", derived from the fable The Boy Who Cried Wolf.

[hooley] 21/7/2016 14:09

Cry wolf if you must, but that's the game these days. It provides the opportunity to buy cheaper. There's no such thing as a disinterested investor - hedgie or otherwise. Accept the fact of volatility and use it to invest on a sustainable yield basis. I was an investment research analyst for 30 years before retiring over 20 years ago. The rules and players have changed though the fundamentals haven't.

[pierre oreilly] 21/7/2016 13:30

Haitong seem to have it in for talk - their analysis does seem overly biased imv. If the company says divi will be maintained i, like you, don't see how they can then assume it'll be cut 40%. Also how they can logically state stuff like 'ignoring the growth area, the rest isn't growing as much' or similar. While hey can say what they like i suppose, it doesn't seem a decent analysis imv, and it would be interesting to see if they have connections to those shorting institutions. Nevertheless, it does seem to be the thing which hit the price yesterday after the initial update rise.

[quepassa] 21/7/2016 12:45

Deutsche Bank today REITERATES its BUY Recommendation on TalkTalk and reconfirms its price target of 300p.

ALL IMO. DYOR.
QP

[wllmherk] 20/7/2016 17:51

I was attracted to this stock for the dividend and can see nothing from today's update to worry me. I find it strange that the above predicts a 40% cut to the payout, but, the update clearly states the dividend will be at least maintained through 2017 and is covered by cashflow. I continue to hold.


wllm

[muscletrade] 20/7/2016 14:26

Haitong wasting no time to get stuck in to talk talk again this morning....who would have thought.

Anyone want to fight back.


"We estimate YoY change in group revenue in 1Q FY17 was flattered significantly by unexpected growth in very low margin ‘carrier’; revenue. Ex this boost, we estimate YoY change in group revenue would have been -2.9%, versus TALK-compiled consensus expecting -1.4%. Note also that during the call this morning, TALK guided to -3% to -4% YoY change in group revenue in 2Q FY17. Also FY17 EBITDA guidance remains £320m-£360m (TALK-compiled consensus is at £321m). We make no changes to our forecasts, rating and FV estimate for TALK (TALK LN, 223p, Sell, FV 150p).

Valuation. TALK incurs big exceptional costs every year which also help trading metrics like net adds and churn reported every quarter. We estimate exceptional costs averaged c.34% of ‘headline̵7; PBT in each of the last nine years (TALK was demerged from Carphone Warehouse at the end of FY10).

On our post-exceptional cost forecasts for FY17, TALK currently trades on 24.7x P/E vs. the sector on 17.0x, and 9.8x EBITDA vs. the sector at 6.2x. Also we forecast a 40% cut to the dividend, and on this basis the yield is 4.3% vs. 5.7% FCFE yield and 2.3x net debt/EBITDA.

We think Ofcom will raise TALK’s unit wholesale costs for fixed line connectivity from FY18; this is a problem because we think TALK’s scope to raise its prices is poor. Earlier this year, Ofcom said it wants to alter Openeach’s prices to incentivise (i) alternative operators like TALK to share the cost of building Britain more fibre connectivity; (ii) BT (BT/A LN, 393p, Buy, FV 600p) to invest more on service quality. Ofcom now values spend on fibre more than low retail prices (in Spain, according to Ofcom’s research, fibre connectivity is much greater but retail prices of comparable broadband services are 2x what they are in the UK)".

[pierre oreilly] 20/7/2016 08:54

Well the Ervin autocorrect really made that post almost undeciferable.

[pierre oreilly] 20/7/2016 08:46

The underlying business is of course very profitable in a sector which is almost guaranteed paid growth. The hack, mild and not unusual, has caused a big blip n the growth story, and we are now back where I first invested in talk, only now the numbers include a chunk for security fixes and provisions such will drop out, and all have the most secure systems around. So I'd say back to business as usual with pre-hack price performance from now on. The divi statement looks extremely positive to me, and view divi statements as reflecting the real view the directors have, irrespective of anythint else.

[quepassa] 20/7/2016 08:38

Vodafone now yield 5% ( 11.45 divi last year share price 229)

BT now yield 3.57% (14p divi last year share price 392)


And

TalkTalk yields 6.93%


Again the figures for talkTalk are robust.

At 6.93% yield, the share does not warrant such a yield gulf compared to the bigger players - especially BT which is beset with such uncertainty surrounding Openreach.


ALL IMO. DYOR.
QP

[quepassa] 20/7/2016 08:24

Dividend at least as high as last year. Again reconfirmed. In unequivocal terms.

TalkTalk paid a total divi of 15.87p in 15/16.

At a share price today of 229p, this equates to a highly attractive forward yield of 6.93%.

With the distinct prospect of some further increase in dividend.


Figures are robust. Strong Q1 Trading Update.


ALL IMO. DYOR.
QP

[garycook] 20/7/2016 08:14

The Market likes the trading statement,and also the Dividend being maintained.Looking good for TALK shareholder,s.

[rathlindri] 19/7/2016 11:12

Old news, but let's hope they're right

"Deutsche Bank initiates coverage of TalkTalk Telecom at 'buy'
6 July 2016 09:46
(ShareCast News) - Deutsche Bank initiated its coverage of TalkTalk Telecom Group with a 'buy' rating and target price of 300p on Wednesday."

[wllmherk] 19/7/2016 11:04

I hope to see an improvement in the SP, bought in a couple of weeks back at 221p with costs. This should prove fairly resilient despite all the uncertainty around.

wllm

[ph1ts] 19/7/2016 10:43

I can't see people using their services less as a result of Brexit. Surely, the recovery from the bad publicity last year should be continuing. The share price wasn't hit when we went x-div, but who knows?

[rathlindri] 19/7/2016 09:48

Let's hope it's a good positive update

[1gw] 19/7/2016 09:37

All seems remarkably quiet ahead of tomorrow's TU and call.