Bt Share Discussion Threads

[hamhamham1] 02/8/2018 16:17

BT Group plc: does a 7% share price rise suggest further gains are ahead?

The last month has seen the BT Group plc (LON:BT.A) (BT.A.L) share price rise by around 7%. That’s a strong performance in my view. I had anticipated that investor sentiment could remain weak until the appointment of a new CEO, but the stock market seems to have warmed slightly to the long-term prospects for the business.

Of course, there could be significant change ahead for the FTSE 100 company. A new CEO may look to overhaul the strategy which is currently in place – even though it has been live for a relatively short space of time. This could create instability, with the prospect of changes to dividend policy, investment in sports rights and the breadth of the company’s operations having the potential to cause a period of uncertainty.

In my view, the current strategy adopted by BT could have a positive impact on its share price. It appears to be focusing on the right areas, with cost reductions and investment in its pay-tv offering having the potential to boost its financial performance in the long run.

Sure, those changes come at a cost. Investment in sports rights has been a drain on cash at a time when pension liabilities and dividends have become more costly. But with interest rates set to rise as soon as later today, the affordability of major pension schemes could improve for companies such as BT.

Looking ahead, I expect increasing volatility to occur. Major changes could be ahead, and this could lead to investors pricing-in a larger discount in the form of a lower valuation. Already, the stock has a PE ratio of around 9, which is one of the lowest ratings in the FTSE 100 at the moment.

Therefore, while I’m bullish about the long-term turnaround prospects for the stock, I think that in the short run there could be increasing volatility ahead.

[pacemaker1000] 02/8/2018 15:05

Ham...yes Livs degree in fifteenth century French poetry proved invaluable to Openreach...lol

[hamhamham1] 02/8/2018 14:54

Monty, if IAG is anything like BARC, fingers on the button tomorrow :)

[hamhamham1] 02/8/2018 14:27

Monty, yep I have seen 3 in the FTSE100 like that, IAG, GLEN & RRS.

[montyhedge] 02/8/2018 14:25

Hopefully, the one good thing is no stamp duty on IAG, great for trading.

[hamhamham1] 02/8/2018 14:07

Monty. Yes, higher interest rates will be good for the pension deficit, so hopefully that will support the share price here :)

[hamhamham1] 02/8/2018 14:06

Toon. I think the ex-Openreach boss would be good to get back?

[hamhamham1] 02/8/2018 13:03

Monty. I guess you may well be sold by 8:05am?

[montyhedge] 02/8/2018 12:36

One good thing for the bulls of BT is higher interest rate, means higher gilt prices, for BT pension pot thats good news.

Ham
Back in IAG 681p for the figures tomorrow.

[toon1966] 02/8/2018 12:24

I don't think Monty can either...….

[hamhamham1] 02/8/2018 12:21

Toon. Oh sorry, I can't keep up!

[toon1966] 02/8/2018 12:11

Saying that it was good to see Monty was back in IAG early this morning......

[hamhamham1] 02/8/2018 11:47

Monty. Good call getting out of IAG when u did :)

[toon1966] 02/8/2018 09:37

Latest odd's on new CEO hxxps://www.lightreading.com/business-employment/appointments/bts-next-ceo-odds-lengthen-on-garfield-swantee-new-favorite/d/d-id/745058?_mc=RSS_LR_EDT

[hamhamham1] 02/8/2018 09:08

Does anyone remember Chads?
ie China- Wot no hidden debt mountain?

[hamhamham1] 02/8/2018 08:24

Mbmiah. I would buy companies that provide the nuts and bolts of electric, ie battery components, rather than the assemblers and retailers.

[mbmiah] 02/8/2018 08:13

Electric is the future.

[montyhedge] 02/8/2018 07:20

It will be.

[eeza] 02/8/2018 07:14

So was Tesla being a slam dunk short.

Lol !!!!!

[montyhedge] 02/8/2018 07:04

Not sure ham, that's a tough call.

[hamhamham1] 02/8/2018 06:47

Morning Monty. So if you say 192p post ex-divi. What price do you say the day before ex-divi?

[montyhedge] 02/8/2018 06:20

Investors like Elon Musk, they are backing him and a vision. Two of the biggest hedge funds are short and I agree with them.

[hamhamham1] 02/8/2018 06:03

Tesla up because they reduced their cash burn from $1bn per quarter to a mere $739m last quarter?? (Analysts thought $900m).
Never made a profit, unable to produce many cars and now want to get into bed with the Chinese (build factory, borrow $5bn cash and they will want the tech secrets).
How can it be worth more than Ford market cap??.



Disruptors don't always make money. e.g. Railway Mania.

[smurfy2001] 01/8/2018 23:13

lol that's a big move