Bt Share Discussion Threads

[fatmansays] 22/5/2023 08:41

9.27am: Citi thinks BT's asset quality is improving, adds to European Focus List

Shares in BT have gained 2% in early dealings as the stock rallies following hefty falls which followed last week's results and massive job cuts.

The broker notes th telco is doubling down on its strategy of building and connecting FTTH at pace and not limiting that to any free cash flow targets, which as a result are coming under some pressure.

"But this is temporary and in the meantime BT is delivering EBITDA growth, despite opex headwinds which should partly reverse from FY25," it said.

As such the asset quality is improving, core earnings are well supported and growing, while capex is at its peak and way above any other major European telco due to BT's rapid deployment and full transparency on investment, Citi explained.

"We reiterate our buy rating and also place BT on Citi’s European Focus List," the broker said.

[spacecake] 19/5/2023 07:44

"Very light volume, prices look odd."

What should they look like ?

The thing is for me with this kind of thinking is that it will not change anything, the market goes nuts over anything and nothing. Looking at share prices and trying to apply logic will put anyone trying into a hospital. I'm sure the board don't follow the share price or care about it otherwise it would better than it is.

[careful] 18/5/2023 15:09

About 60m shares traded out of about 10 billion.
we have been up to 8% down today after less than 0.6% of the shares have been traded.

Very light volume, prices look odd.
No one is interested either buying or selling.
Some big companies are considering listing in America to get better valuations.

Who can blame them, London has no liquidity so prices are too low.
Mug punters such as myself watch these stupid incorrect prices.
They are real enough if we wish to buy or sell.
Many are scared to buy, others refuse to sell.
We make the mistake of thinking that the market is smart.

If I judge that my goose will lay some golden eggs over the next ten years why should I give a damn what the market thinks it is worth?

[careful] 18/5/2023 11:27

Assets should rise to match increasing debt.
There is good debt and bad debt.

We all experience good debt when years ago we got the biggest mortgage we could handle, but a decent property with it and enjoy getting rich as the years pass.

Cost of capital 5% return on capital 12% is a good debt.


Just imagine going down to the the bank and getting a secured loan at 4% and buying 500,000 BT shares with it.
I wonder how it would perform over the next 10 years. Abut £2k p.a. to service less dividends.

I never had the courage.

[eaaxs06] 18/5/2023 11:18

I’m amazed at the market over reaction to the news of massive jobs cut, which everyone and their dog knew would happen. Even the CWU said it was ‘no surprise’

We’ve recruited like crazy to getting fibre into ducts, whilst enjoyed 130% tax relief for the expenditure, with virtually all that labour force realizing this would be a medium term contract.

It’s obvious those workers would be released when the project is completed.

Good luck everyone, Sid.

[essentialinvestor] 18/5/2023 11:16

Yes, but it's still debt that need to be serviced and it's up another £850 BN approx.

I'm just highlighting that looking solely at a very low multiple in the case of BT
does not give the full picture. You might still think BT is great value even allowing
for the debt etc.

[careful] 18/5/2023 11:12

Debt is bound to be higher when they are investing millions in fast fibre.
The important thing is to get a return on the investment.

[careful] 18/5/2023 11:10

I remember Una dancing with Cliff Richard who was driving a London bus.
Googled to see how old you were but sadly you have passed away.

Hope you hang in here and make some posthumous gains.

[1224saj] 18/5/2023 11:08

230 m down on profits 1 billion wiped off value of company that?s about right for the sick corrupt U.K. markets

[essentialinvestor] 18/5/2023 10:32

As BT net debt now significantly exceeds the market cap, a PE ratio of 6
only tells half the story - it's too rudimentary a valuation measure.

Profit is also boosted by a £642 Million tax credit, which the market will have noted.

[maywillow] 18/5/2023 10:20

LOL

Hang in there una

What with all this downsizing one wonder if the will be suddenly more mergers and takeovers throughout Europe and afar

Having said that i too by 2034 might well have popped my clogs

[dan de lion] 18/5/2023 10:19

Adjusted profit per share 22p, at an share price of 1.37 pounds that give a P/E ratio of just over 6, would normally be in the range of at least 10 to 12.

[unastubbs] 18/5/2023 10:10

"By 2034 the problem should have been eliminated entirely, with gradual improvements on the way."

By 2034 I'll be falling away too!! :)

[unastubbs] 18/5/2023 10:08

market overreacts yet again. who'd be a telecoms investor? i'm holding tight. i have more confidence in these versus VOD and find the news abt the future lay-offs to be positive for long terms holders. so long as the dividend is safe then I'm happy enough. GLA

[careful] 18/5/2023 10:08

BT pension deficit is £4.5 bn.
It pays out £2.5bn per year.

The problem last year was that the fund fell in value due to derivative and hedging that turned out badly.
The pension deficit is manageable and it is bound to improve with time as the number of pensioners and employees fall away.

By 2034 the problem should have been eliminated entirely, with gradual improvements on the way.

[essentialinvestor] 18/5/2023 09:50

mrf, the more generous pension schemes have been closed for years,
and without wishing to be impolite older pensioners on more generous payouts
are gradually dropping off the other end.

[thebutler] 18/5/2023 09:50

Agree, myretirementfund. The huge pension deficit puts me right off BT, wouldn't touch it with a barge pole. Plus, like mentioned earlier, they seem to be out-competed. Many more better value investments out there.

[my retirement fund] 18/5/2023 09:46

BT has one of the most generous pension schemes in the sector. All the redundancies are going to result in a monumental redundancy package, but the pension liabilities will probably sink this ship!

[careful] 18/5/2023 09:33

I see the fact that BT is fat, inefficient, union dominated, formerly state owned, as an opportunity.
Is it easier to lose weight when fat and bloated than if already lean and fit.

Janson is making the right noises, we investors have to guess what the outcome will be.

I have just topped up. (usually a reliable sell sign)

[babyal] 18/5/2023 09:32

Openreach engineers are removing copper cables from the network at a fast rate to be replaced by fibre. Once this happens in four to five years they will only need 5000-10000 engineers to maintain the cables as fibre is not affected by weather unlike copper which hates moisture. The main issue will be heavy competition for our custom.

[essentialinvestor] 18/5/2023 09:21

Space, that's a blast from the advertising past - remember it well.

[wipo1] 18/5/2023 09:19

My BT broadband up to £70 per month with BT sports. Too expensive

[spacecake] 18/5/2023 09:06

Phillip Jansen...

“By continuing to build and connect like fury, digitise the way we work and simplify our structure, by the end of the 2020s BT Group will rely on a much smaller workforce and a significantly reduced cost base. New BT Group will be a leaner business with a brighter future.”

I had to laugh, references to 'leaner' it reminded me of the TV adverts for British Steel, leaner, fitter then disappear into the ether in a puff of shareholder value smoke

[...]

Go on treat yourself to comic TV at the expense of the workforce.

[careful] 18/5/2023 08:57

I think demographics are now working in BT's long term favour.

Many would jump at the chance of early retirement so BT will be able to lose a big % of its workforce they no longer need.

Also, to make a tactless observation, the huge number of retirees from way back who retired on the most generous terms will be dying off.
The number drawing from the generous BT pension shemes should reduce dramatically from this time on.

The eye watering numbers of BT retired employees has been staggering in recent years.
The pension fund was considered to be a problem at BT.
All of those gags about BT being a pension fund with a telecoms company attached

Over the next few years this will turn around.