Bt Share Discussion Threads

[montyhedge] 08/11/2019 10:32

That's when I was long, don't forget trader not investor one bit of news changes everything for traders. Long term to me is until after lunch, lol

[ianood] 07/11/2019 18:40

Yes Nige, the guy's an egotistical pillock and certainly not someone to follow. More mug punter than serious investor.

[nige co] 07/11/2019 18:27

montyhedge - 21 Oct 2019 - 07:17:03 - 33078 of 33172 BT - Where next ? - BT.A
250p new trading range by Xmas still a lot of fat on the bone.

Make your mind up Monty? You seem to change it like the weather. One minute you say 250p new trading range (see above) 18 days later BT is a value trap.

[montyhedge] 07/11/2019 17:21

Problem is BT will cut, Vodafone who took the pain and cut are now looking to increase dividend.BT is a value trap.

[toon1966] 07/11/2019 16:35

Bloomberg reporting this afternoon that Comcast's Sky Sports are likely to enter the bidding for the Champions/Europa League rights from 2021.

[rathkum] 07/11/2019 15:39

Why I think the BT share price is a better buy than Vodafone on 7.9% dividends

Tom Rodgers | Thursday, 7th November, 2019 | More on: BT-A VOD
Image depicting web connectivity from a mobile phone
Image source: Getty Images.

The BT (LSE:BT.A) share price has bounced back from the doldrums, and despite some shock news recently, I think it still makes a good investment case for income investors.

Virgin announced on 6 November its was moving its mobile operations over to rival Vodafone (LSE:VOD).

Cable broadband specialist Virgin doesn’t have its own mobile infrastructure and so must piggyback on a network; first on EE and now Vodafone. The £200m contract switch was apparently made on cost grounds, taking 3 million Virgin customers off BT’s books.

Still, I say BT is attractive because its share price is at multi-year lows. A headline dividend of 7.9%, and a trailing price-to-earnings ratio of 7.5 means it is super cheap, too. But is Vodafone the better bargain?
5G all the way

Since BT’s £12.5bn buyout of EE in 2016 the mobile network has dominated every category in data speed, coverage, and reliability with 4G and 4G+.

But since the UK regulator Ofcom’s 5G spectrum auction, Vodafone has come into its own. In the second half of 2019 data analyst Rootmetrics, which charts speed and reliability city-to-city, found Vodafone 5G faster and more reliable than long-time king of the hill EE.
Vodafone debt hangs heavy

There’s been talk of a takeover or merger between Virgin and Vodafone’s UK businesses for years. They certainly have close ties in Europe. Virgin’s owner Liberty Global owns half of Vodafone’s Dutch mobile and broadband service and in 2019 sold almost a third of its assets to Vodafone in a €18.4bn deal, giving it 25 million new customers across Germany, Hungary, Romania, and the Czech Republic.

But Vodafone financed the deal with massive amounts of debt. And that’s what led bosses to dismiss 20 years of history with a 40% dividend cut in May 2019.

I think investors should be concerned about the forward pressure this puts on Vodafone’s balance sheet even as group CEO Nick Read says his focus is on “reducing our financial leverage towards the lower end of our targeted 2.5–3.0 times range“.

Vodafone’s price-to-earnings ratio is now in minus numbers. It swung to a €2.61bn loss in 31 March 2019 results, from €43bn in revenue. Half-year results are out on 12 November.
BT free

The telecoms behemoth is a classic recovery bid. Buying an out-of-favour stock when the herd is heading in the opposite direction takes some gumption and fortitude but you will be smiling if it pays off.

Both bargain hunters and income investors have something to gain from BT, in my opinion. The share price rebounded 15% from 160p in August and now hovers around the mid-190p mark. I think there’s more upside in the BT share price than Vodafone, simply because prices are so low.

And losing Virgin’s £200m contract after 20 years – as much as it stings and makes headlines – is still a drop in the ocean on half-year revenues of £11.4bn, reported on 31 October.

As income investors, more than anything we want more our dividends every year like clockwork. BT have said that investing in their network will take precedence over sky-high dividends. I think that’s the right strategy.

The contract loss will make BT’s dividend coverage tighter, City analysts say, which means that money may not come back to shareholders. I would price in a possible dividend cut from BT if you’re looking to load up on the shares

[isis] 06/11/2019 18:12

Nothing is a given when contracts are up for grabs could go to anyone who puts a bid in - just another day in the World of Business.

[dipso] 06/11/2019 17:55

I have just read the report on the BBC news website.
it is open to public comments and here is a copy of the 10 highest rated
comments out of 134 so far.
seems interesting.....


probably lost it because BT put up the price as they are not a new customer.
I wonder how much tax Vodafone will decide to pay this year...
Good luck if you live in a Vodafone signal blackspot
"I wonder how much tax Vodafone will decide to pay this year..."I'm sure HMRC will reduce it if they ask.
Vodafone are shocking
Watch the exodus from Virgin.
I have both an EE and Vodafone Data SIM.The EE data service is far superior to Vodafone's (in my experience within the area I use it).
Vodafone coverage is significantly worse than BT/EE , especially in more remote areas, Virgin will lose customers.
Oh Dear, Poor customers, hijacked without consent.
I switched from Vodafone to Plusnet(EE) last month because Vodafone coverage and customer service was appalling.

[isis] 06/11/2019 17:54

We calculate a marginal 4% free cash flow hit, but not before full year 2023 for contractual reasons’, said Jerry Dellis, an analyst at stockbroker Jefferies.

‘This gives BT plenty of time to mitigate the issue by adjusting investment plans and reduces 5G capex risk’, said Dellis.

The analyst believes that Vodafone is likely to have won the Virgin contract largely on price, offering much better terms than BT.

‘That represents a material strategic shift for Vodafone, which previously stressed the importance of not allowing MVNOs to undermine retail pricing levels’, said Dellis.

[isis] 06/11/2019 17:51

Jeffries saying it won't hit until 2023 and maybe nothing in the end?

hxxps://www.sharesmagazine.co.uk/news/shares/bt-plunges-after-losing-virgin-mobile-contract

[toon1966] 06/11/2019 17:14

Agree with both of you, reports suggest BT will lose £200 million a year...

[poikka] 06/11/2019 17:13

Would've been nice if my Vodafone shares had gone up by an equivalent amount. Such is life.

[isis] 06/11/2019 17:00

BT achieved their £5+ price before they even had EE so seems a bit of an overreaction?

[toon1966] 06/11/2019 16:09

montyhedge said 21 Oct '19 - 07:17 - 33078 of 33160 "250p new trading range by Xmas still a lot of fat on the bone."

[montyhedge] 06/11/2019 16:06

I reckon Amazon will just make a knock out bid for football rights, BT no chance. Then what happens to BT Sport, I would leave, if hardly any football.
Boxing Day Amazon showing every Premiership game, live. BT will have no chance in the future, thats my view.

[montyhedge] 06/11/2019 16:03

185p here we come.

[isis] 06/11/2019 15:54

Oddly enough I have shares in BT and VOD but use Virgin Mobile. ;-))

[george stobbart] 06/11/2019 15:52

Any news why this Ponzi scheme is crashing today?

[isis] 06/11/2019 14:09

toon - mind you the connections with Liberty may have has some sway. ;))
Taking Liberty's perhaps. :))

[toon1966] 06/11/2019 13:23

What do you mean by 'market share consolidation'? This a full MVNO agreement which Virgin have negotiated with VOD, and replaces the agreement they had with BT.

[nige co] 06/11/2019 12:40

I doubled up in BT this morning just under 195p. IMHO, BT are a bargain.

[isis] 06/11/2019 12:04

OK - cheers. :))

[toon1966] 06/11/2019 11:40

VOD do not own parts of Liberty Global. VOD bought Liberty Global's cable assets in Germany and Eastern Europe. They have a joint partnership in Vodafoneziggo.

[fhmktg] 06/11/2019 11:38

Market share consolidation?Expect some combining of retail outlets to release cost savings.BT/EE will be a power to beat and the new ceo now has some clarity about competition plans for the next six years.Battle begins!Ofcom will be watching.