Bt Share Discussion Threads

[dmf] 28/10/2017 16:09

Here is the link, in fact it does refer quarterly (error by author obviously)

[...]


"BT investors hopes for calm

It’s probably fair to say that it’s been a difficult year FTSE 100-listed telecoms giant BT Group plc (LON:BT.A.) with an accounting scandal in Italy, lower growth in some international markets and concerns about its pension deficit all unsettling investors.

But Deutsche Bank expects BT’s second quarter update on Thursday to be “somewhat calming post recent shocks” with the lender anticipating a guidance reiteration, together with a 5% hike in the quarterly dividend to 5.1p.

However, the German bank still think’s BT’s host of major issues will take longer to resolve and will cap the stock’s short term performance, making new chairman, Jan du Plessis’s induction demanding.

Deutsche’s analysts concluded: “We don’t dispute that BT will be strong in both fixed and mobile in the LT, but view that a painful catch up vs European peers on investment and convergence has yet to run its course. There is no imminent ‘return to normal’ for BT and risk of owning is high vs peers.”

[wllmherk] 28/10/2017 15:01

I think he meant interim smurf. It would be a pleasant surprise if we got some good news, even an in line update with some positive forward guidance should see these retrace back to the 300p mark. I will be up early on Thursday as due to work commitments I won't be able to watch the days action.


wllm

[smurfy2001] 28/10/2017 14:47

DMF,

BT don't pay quarterly dividends !

[essentialinvestor] 28/10/2017 13:21

Would be stunned at a 5% divdend hike.

Interesting week in prospect.

[toon1966] 28/10/2017 13:05

Interesting post DMF on DB's Q2 guidance. The problem being is you were saying on Friday that there was more bad news to come, could you please clarify? A Proactive Investor link would be good as well.

[dmf] 28/10/2017 11:50

According to the Proactive investor website DB is expecting a calmer Q2 after the recent shocks, expecting a guidance reiteration and 5% hike in the quarterly dividend to 5.1p

DB does comment no imminent return to normal, high risk compared to is peers

[hiddendepths] 28/10/2017 10:47

Been looking to buy in here on value grounds. But I hate the newsflow, the momentum and the chart. It really does look like a falling knife. I suppose the RSI flags that the shares are technically oversold. But if the attraction of the progressive dividend policy is about to fall by the wayside there will be new sellers.

I know the value is there but that doesn't make it a buy yet - unfortunately. :-(

[toon1966] 28/10/2017 10:15

pacemaker1000 I understand where you're coming from but BT in two recent appointments have acknowledged all is not well in their relationship with Ofcom. Cathryn Ross (formally Ofwat)is the Groups new Director of Regulatory Affairs and Mark Shurmer has been promoted within Openreach to Managing Director Regulatory Affairs.

[pacemaker1000] 27/10/2017 19:05

Why should BT have to repair relationships with ofcom?
That implies they haven't been non biased

[toon1966] 27/10/2017 15:38

and what more bad news would that be DMF?

[dmf] 27/10/2017 14:48

No.....more to come Nov 2

[tahmina1] 27/10/2017 14:45

is the bad news all in the price?

[toon1966] 27/10/2017 13:56

DMF said 27 Oct '17 - 12:47 - 25763 of 25764 - English Soccer Clubs Plan to Launch Breakaway ‘Premier League 2’

What's the reasoning behind this post?

[dmf] 27/10/2017 12:49

BT pension deficit could reduce by £4.4bn as expectations of an interest rate hike mount

hxxp://www.cityam.com/274412/bt-pension-deficit-could-reduce-gbp44bn-expectations

[dmf] 27/10/2017 12:47

English Soccer Clubs Plan to Launch Breakaway ‘Premier League 2’

[dmf] 27/10/2017 12:42

FT has an article about BT - being at 4 year low concern about profits and dividend cut !

[dr biotech] 27/10/2017 12:41

Bit below shows that expectations are going to be quite low in some quarters. Just have to hope for the best.



Given the share price hammering BT Group PLC (LON:BT.A) has taken this year – down almost 27% - analysts at Jefferies reckon there’s no doubt that the telecoms giant “promises value”.

But that’s about as good as this morning’s note got. The US broker kept its rating at ‘hold’ but lowered its target price to 265p, claiming that next week’s second quarter results will reflect “weak operating momentum”.

Given that expectation, Jefferies has kept its forecasts “materially below” the current consensus.

It is looking for full-year underlying earnings (EBITDA) of £7.50bn on revenues of £24.09bn.

BT has so far kept true to its progressive dividend policy, but Jefferies thinks even a cut to that can’t be ruled out. Analysts at the broker are forecasting a dividend of 15.4p for at least the next three years.

Ofcom issues weigh

Another issue surrounding BT in recent months has been Ofcom taking a perceived tough stance against the company, and Jefferies says the new chairman will have his work cut out trying to rebuild the relationship between the company and its regulator.

“BT's incoming Chairman faces the clear priority of repairing relations with Ofcom. This will require a very visible demonstration of network investment ranking above shareholders.”

Don’t expect any concessions from Ofcom in the near future, with the broker warning that the regulator has “little incentive to step back”, making clear that it wants to “stimulate retail investment as well as investment”.


If a report in The Telegraph on Tuesday is to be believed, BT really can’t catch a break at the moment.

The paper claimed that a deal between the UK government and BT’s Openreach subsidiary aimed at delivering superfast broadband to 1.4mln rural homes faces some legal hurdles.

Legal advisers are said to have raised concerns that a voluntary offer from Openreach could be challenged in the courts as unfair state support.

Instead of working with BT, the government could decide to impose new regulations that would force its subsidiary to upgrade rural broadband lines.

BT shares were off another 1.3% to 269p in mid-morning trade.

That idea has support from rivals TalkTalk and Sky, who fear that Openreach would be able to dictate the technological and financial terms of a negotiated deal.

[essentialinvestor] 27/10/2017 12:33

Have to admit being too cautious on AZN, thought it would be below £40,
not above 50.

[careful] 27/10/2017 12:30

I seem to remember Woodford selling out of GSK, but then was caught by a big dip in AZN not long afterwards.
They have since recovered but he has has a bad run of late, despite the fact that he has the advantage of being able to talk to the CEO if he wishes.

He must have good information with his contacts. As Gordon Gekko said, there is nothing more important that information.

[essentialinvestor] 27/10/2017 12:28

Depending on where he allocated his GSK cash, would agree, at least short term.

Quick in/out for me in Shire.

[dr biotech] 27/10/2017 12:27

woodford sold out of GSK earlier this year. One of his few good calls this year

[essentialinvestor] 27/10/2017 12:25

Woodford's BT.A sell was astute, well over £4 from memory.
What he saw in AA with net debt metrics as a % of the pre tax is beyond me.

[dmf] 27/10/2017 12:21

Yes PFG - I think woodford owned a big 'chunk' of that as well as GSK & AA !