Bt Share Discussion Threads

[brucie5] 07/5/2020 12:09

Well I've just bought 10k shares at 1.065. If it closes up at 1.10 that will be an impressive triple bottom from early March. Doesn't of course mean it will. But the fact that we are staying this side of the £1 suggests that this may well bounce from here.
Bear in mind this has already halved in the last six months. 80% down in five years.

[smurfy2001] 07/5/2020 12:02

I'm going to see where this settles in the coming weeks before adding.

[brucie5] 07/5/2020 11:53

Well my penn'rth, having topped up yesterday (!!!) in expectation that we'd see a dividend reduction rather than suspension:
1. The market was 'probably' not expecting this, and yes, for dividend funds and holders this is very bad news, so maybe some selling.
2. for value seekers the picture might be different, particularly on 12 month view. While I'm not gain saying the questions over the business model and pension deficit, the diversion of the dividend bleed back into the company may be a life saver; and the current disaster in share price may, in a company this size, be every excuse it needs to take tough decisions and reorganise. 'Companies of the this size' are possibly, in many ways like the civil service; able enough people at the top, but beholden to too many factors outside their control, and the structure itself, which reduces room for manoeuvre. Nothing like an existential threat for changing that.
3. for Chartists, this is a very interesting place, since the £1 threshold is the strongest there is, and a brief look at the ADVFN all time chart, which stretched back to 1997, shows it has only once been below that level, in 2009, since when it went up 5 fold. Ok, we can't look at history to repeat itself, but... IF it does fall below £1, I would expect a rapid descent to its absolute bottom, at which every man and his dog will be calling it to fail altogether and slapping themselves on the back for being out or short. But that will be a historical bottom and most likely, an absolute bargain. I can already see a few people here waiting for just that eventuality. Who knows, if/as/when the DOW goes on its second leg down, we could get there.
But we haven't even touched on the upside. It's as though everyone has forgotten what that might be. And that's usually an excellent sign of historic opportunity.
As previous poster observes, BT is far more likely to be broken up, than to fail.
FWIW, IMO, NAI.

[montyhedge] 07/5/2020 11:49

They could float off EE.

[aurelius5] 07/5/2020 11:47

Fully agree with Porsche. The tide's going out and UK plc has been swimming naked. There's little point investing in these poorly managed, clapped out dogs. Bear in mind that the bulk of long term stockmarket gains come from dividends.

[pt725] 07/5/2020 11:40

If you broke up BT , value would be 4 times current market cap.EE 12 bOPENREACH 10 bLEGACY BP 10 bPROPERTY DEMERGED AS REIT 7 bPLUSNET .5 bBT TV 1 bOTHER BITS ( Europe etc) 5 b TOWERS ????

[careful] 07/5/2020 11:38

We could have sold for £2.05 in mid Dec.
20 weeks ago, a collapse of 40% in 20 weeks.
And the results were quite good, this is not going bust, far from it.


Investors have gone off shares as an asset class.
These will do well over the longer term.
But with so many short term traders, who gives a damn about longer term.

Sentiment drives momentum, momentum dominates share price.

[justiceforthemany] 07/5/2020 11:30

Balance sheet looks a lot better at least.
Up by £4Bn; total liabilities down and equity >£14Bn
Dividend suspension will also save ~£1.5Bn

[milliethedog] 07/5/2020 11:23

Thanks....
Really got to pay for Level 2 & see the bigger picture sometime....

Some resistance @103?
DOW futures now 300+ so hopefully FTSE will give support into PM

Watch n wait.....

[colonelgrim] 07/5/2020 11:20

Don't like doing it but I will have to go with 'BUY ON BAD NEWS' and this is bad news indeed!

[eaaxs06] 07/5/2020 11:17

23m/57m approx.

That's from advfn trades, so a fair bit of guesswork involved.

[milliethedog] 07/5/2020 11:13

Would one of those with Level 2 kindly tell me the ratio of buys to sells plaese?
Many thanks
M

[colonelgrim] 07/5/2020 11:11

What you recon here Monty, hit the bottom yet have we?

[porsche1945] 07/5/2020 11:05

Ftse 350 is uninvestable, as is U.K. in general, hardest hit out of all indexes, was reeling anyway thanks to the brexit fiasco and now doing a worse job with covid than anywhere else on the planet, the only reason to invest in the U.K. was dividends and they have gone, zero growth basket case with terminal problems, taking a loss and dumping this sxxt.

[loganair] 07/5/2020 11:04

The biggest problem I see with the Privatised companies such as BT, British Airways, British Steel, Royal Mail etc is their massive pension liabilities due to these companies being way too over staffed and thereby inefficient when they were in 'Public' ownership and their need to reduce staffing levels by often as much as 50%.

Currently BT is carrying way too much debt and needs massive amounts of capital expenditure each year to keep up with the new technologies.

As soon as BT have got their 5G fully up and running, 6G will come a long that will require another £10bln or so of spending to get up and running and so on and so on, seems to be never ending.

[poikka] 07/5/2020 10:53

As a rider to loganair's copy and paste, above, £6bn or so of the net debt is due to IFRS 16, which, as everyone knows, includes leases.

[poikka] 07/5/2020 10:48

On top of:

"Cancelling divi saves £1.5bn this year, and £750m next year - £2.25bn.

65% of debt is due 5 years + out."

There's £5bn+ net cost savings estimated by 2025, with £2bn/an thereafter.

BBC Sport suffering this year, but up and running by next year.

My target remains at 150p within a year.

[montyhedge] 07/5/2020 10:34

EBITDA 8 billion, free cash flow 2 billion, companies would die for that. But no dividend for shareholders, unbelievable.

[holly1000] 07/5/2020 10:31

Sold yesterday at 115 bought back today 9.5% lower! so have my dividends this year and now waiting for recovery over next year, BT is a good mid term investment going forward.

[hhhold2] 07/5/2020 10:17

Might be worth a look when this drops below 70p,

this hot potato has got a ways to fall yet.

[salpara111] 07/5/2020 10:14

The problem with cancelling the div this year and next is that BT used to be a cornerstone investment holding for Income funds but they will now have to dump.
Like most I was expecting a 50-60% divi cut, difficult investment case now.

[washbear] 07/5/2020 10:14

I say..Warren Buffet advises. .HMG to make a Takeover bid cica 85 p...but the Pension deficietNot to be part of deal.Shrewd cat.

[pt725] 07/5/2020 10:07

Based on o2 valuation in merger, EE is worth 12 billion. Therefore rest of BT is in valuation for free.Property must be worth 5 billion on its own

[newkid] 07/5/2020 10:06

OFCOM are responsible for much of BT's problems IMO. Had BT in handcuffs since privatisation.