Bt Share Discussion Threads

[nicholasblake] 11/5/2020 18:48

It is AFTER quite a lot of bond yield moves, even if some give back after b/s date.
Net positive since March 2019.

[essentialinvestor] 11/5/2020 18:25

There was a significant comment tagged on to the pension deficit reduction,
worth reading the full statement on their website.

That number is historic, before the recent bond market moves.

[pacemaker1000] 11/5/2020 18:23

The ratio of share price to company assets has gone from silly to ridiculous!
Especially now the pension deficit has all but disappeared!
Also not like BT has suffered much if at all from covid

[bargainbob] 11/5/2020 15:35

He has also got a coat of many colours he stole from Joesph.

[careful] 11/5/2020 15:22

Amazing how wealthy were all were.
Maybe it is all over now.

Bus drivers and road sweepers do valuable work.
But they were driving glitzy leased Mercedes, going on cruises and dining at up market restaurants.

All on debt, a miracle.
Their balance sheets were good because they bought houses that rocketed in price.
When they retired they had decent pensions.
Their opposite numbers in the poor parts of the world could barely feed their families.

It is suddenly all over, sanity returns.
The poor will be poor again, and the middle class modestly better off.
the bible says seven years of fat followed by 7 years of famine.

God knows a thing or two about economics.

[diku] 11/5/2020 15:10

Where is that debt reset button...if they all pressed it simultaneously what would happen?...

[careful] 11/5/2020 15:07

The governments will just print money.
It must end up with hyper inflation.
But first the bid deflation like the 1930's.

I read recently that total World debt was 5 x World GDP.
Many trillions.

[ekuuleus] 11/5/2020 14:41

the governments are broke. They already pushed cancelling dividends. Next it is a tax swipe.

[diku] 11/5/2020 14:37

But those who bought at 400p on the way down from 500p won't be very happy...




Buying today and achieving a share price of £1.20 in 5 years time is vastly superior to HMG Gilts.

[careful] 11/5/2020 13:24

Reading about the crash of 1987.

Some say that the crash was caused by the risk free returns on HMG treasuries topping 9% when the yield on shares was below 3%.

This reverses yield gap of over 3 was thought to be too high.
A reverse yield gap of 2 was considered healthy.
In those days about 40% of the E.P.S was distributed at dividends.
The rest was retained to grow the business or increase reserves.

What we have now is a risk free return of almost zero, actually negative in some countries.

Applying the old rules we could live with an annual return from shares of 1% or even zero in an deflation environment.

Maybe we are too slow to grasp this reality.

[careful] 11/5/2020 13:01

Amazing that BT could ever be valued as low as £10bn.
Especially when the risk free return from deposits is below 1%.

We shall have to get used to the fact that a total return (capital growth + income)
of 4% is impressive.

Buying today and achieving a share price of £1.20 in 5 years time is vastly superior to HMG Gilts.

Depressions and deflations causes odd effects.

In 1928 in America the best move would have been to put your US dollars into a safe a leave it for 3 years.
Ironically that is what Warren Buffett has done effectively.
He has put billions into almost zero yielding treasury stock.

I am gambling that BT can do better and achieve a good solid 2% min during the upcoming recession/depression.

I draw money to of my savings account and sacrifice about 0.5% p.a.

[milliethedog] 11/5/2020 12:56

True Bruce....it's perhaps psycological

[brucie5] 11/5/2020 12:54

There's no bell rings at the bottom - to coin the old phrase.
No doubt everyone with a view has an ideal entry point into BT, but given the descent from £5, and the current PE of 5, it is really a question of much of as bargain you want to get, while the market perception on this changes from income to growth.
Yes, 80p would be great.
But 50p would be... extremely silly and sounds more like what you might do if you were haggling in an Indian bazaar.
But how much of a difference is there between £1 and where we are now? If you think it might be £1.50 within six months...? £2 within 30 months..?
Each to his own.

[stujj] 11/5/2020 12:43

@Milliethedog - I agree 100% "Sorry, off topic. But food for thought re the greater economy & customers' ability to pay bills."

I think that's 100% on topic and will be reflected in the BT.A share price. My personal view is that the timing isn't right yet for long long-term investing, but there are opportunities for day trading the ups and downs. Let's see when the furlough assistance is removed. If there's a sharp drop, however, then I may add longer term positions. I really don't think we've seen anything yet!

EDIT: Just spotted your £1 target. Yes, that's around my entry point too.

[milliethedog] 11/5/2020 12:23

Of interest to RDSB & LGEN holders also...

[milliethedog] 11/5/2020 12:15

careful..
Agree with that
But am just holding off as DOW futures are down so it may open lower dragging FTSE lower with it
So am sticking to my £1 target......

[nige co] 11/5/2020 10:57

BT pension deficit drops by £6.1bn as liabilities decline

BT’s total pension deficit stood at £1.1bn at 31 March 2020, down from £7.2bn the year before, as liabilities dropped from £59.4bn to £53.3bn, according to its full year results.

The next triennial funding valuation for the BTPS is scheduled to take place at 30 June 2020, with BT aiming to complete discussions in the first half of calendar year 2021.

[diku] 11/5/2020 09:42

monty..are you seeing green shoots?...



montyhedge
11 May '20 - 08:10 - 35496 of 35500
0   2  1



BT could now be a growth stock.

[milliethedog] 11/5/2020 09:14

Looks like it.
Friend of mine works for a company who have 7400 employees. About 4000 furloughed. The rest kept going, just.
Once HMG end scheme the 4000 will probably be laid off as things stand.
Replicate this over the entire country.

Sorry, off topic. But food for thought re the greater economy & customers' ability to pay bills.

[eisler] 11/5/2020 09:02

Nothing will change significantly until a vaccine is developed and distributed. The infection rate will keep bouncing above 1. So this is the new normal for the next 12 months or so.

[milliethedog] 11/5/2020 08:54

buywell.....not so sure there will be a 2nd wave; more a long continuation of the 1st one. People getting fed up with lockdown here, Germany, France.
Germany came out; now back in. R rate went from 0.7 to over 1.France easing restrictions today. More cases in China & S Korea now.


Going to be a long haul folks.....

[milliethedog] 11/5/2020 08:31

108.19
Up over 3%
Not going to see my £1 top up price...

Growth stock, yes.....

[montyhedge] 11/5/2020 08:10

BT could now be a growth stock.

[buywell3] 11/5/2020 06:27

The second wave will wash the gains away says buywell

dyor