Bt Share Discussion Threads

[racg] 24/1/2017 18:26

They have 65 million pensioners on £50k p.a.

Happy now?

[oakville] 24/1/2017 18:25

Now moved up to position 8 in the 'most shorted shares' league. Up from 17. That's a fair jump, I would expect this to fall below £2.80 sometime in the next 2 weeks.

[diku] 24/1/2017 18:22

Anybody mentioned the pension yet?...

[teamwork1] 24/1/2017 18:21

That's all going to change

[philanderer] 24/1/2017 18:14

careful , nothing wrong with using instict when you see what the 'experts' came out with in the last ten days ;-)


20 Jan Citigroup 460.00 Buy
13 Jan Haitong... 560.00 Buy
10 Jan Barclays... 525.00 Overweight

[careful] 24/1/2017 18:13

who cares about tomorrow?
1-2 years is the time period I am interested in.

[jenny tulwought] 24/1/2017 18:05

Monty predicting £2.80 tomorrow, bodes well for some degree of recovery.

[careful] 24/1/2017 18:05

bought in twice today.
sometimes you have to use instinct.

'trust in the force' etc.
i was trained by Obi-Wan and Yoda.

no research required.

[philanderer] 24/1/2017 18:04

Good summary of where we're at:


Neil Wilson, senior market analyst at ETX Capital:

BT’s 20% drop today fairly rattled the City. It was one of the biggest ever single-day falls for a company of this sort. Blue chips like BT just don’t make those kinds of losses on one announcement about a part of the business that accounts for just 1% of earnings.

So is this a golden buying opportunity for investors, or does BT merit a fundamental recalibration of its stock price based on the news?

First, the upside. BT is now looking very cheap on a price to forward earnings ratio (about 10 times). That appears like mightily good value for a company that pays juicy dividends and says it will continue to increase these by 10% a year over the next two years. That could mean a roughly 4% yield for buyers entering now, which if it can manage to deliver is a pretty attractive return.

It’s also dodged a bullet or two by retaining control of Openreach, the jewel in the crown, despite pressure from Ofcom. The acquisition of EE enables to become a genuine quad-play provider. Sports broadcasting is also improving revenues but at a fairly hefty cost

The downside, however, looks ominous. The Italian fiasco will gobble up a whopping £500m in free cash in 2016/2017 and a further £500m in 2017/18. Although BT has largely completed its investigation, there is a risk that this could blow up further and it’s wise to be cautious. The Financial Reporting Council could take this further.

Operating costs seem to be rising, as are debts. Acquisition of EE, while a strategic long-term play, has meant net debts have risen to nearly £10bn. That is also the figure for BT’s pension black hole, which it has to review this year.

Another red flag is the outlook for UK public sector and international corporate markets, which BT says has deteriorated, meaning it expects a double-digit year-on-year percentage decline in fourth quarter underlying EBITDA adjusted for the acquisition of EE.

That is a big concern and signals that investment is drying up. All this points to growing pressure on free cash, which BT needs to keep growing the dividends.

[pvb] 24/1/2017 17:56

Bring back the speaking clock

The old speaking clock (at least recording) is, AFAIK, still around! The one before the male actor from the 1980s, not the original women with the really posh voice - "At the pips the time will be... precisely."

Pat Simmons - she's on my mobile ;-)

[nicksoj] 24/1/2017 17:54

Imo. Oversold. The evening auction is certainly testament to that. I expect a correction is imminent.Divi in place and more to come. Not holding but watching....

[wisteria2] 24/1/2017 17:54

Full story sky news 6.30 with Ian King..

[alphorn] 24/1/2017 17:53

Harv - thx for the reply. Mainly options although moved a fair bit of forex last year. 2016 was good to me. This year will be very volatile I think so needs care.
All the best.

[harvester] 24/1/2017 17:50

ALP: I can't claim to have much insight into BT and how this will unravel .
I have a largish BT position of BT shares and also a CFD position.
I first bought today @ 325 which was on market open and a bit too hasty. Then added to my position at a range of prices from 316 down to 302.5.
Will wait for Friday's results before closing CFD position. Converting short-term CFD position to longer term hold of share position. Can hold long term for divis and recovery. With bank interest rates so low, the BT dividend now looks attractive.
How are you doing ALP? Still into options or just share trading? When the dust on this has settled will consider selling put options if the premium is right.

[montyhedge] 24/1/2017 17:50

IsisWe know that read on, it's a profit warning. The pros know they come along in threes, two more I reckon.Corporate and gov revenue falling.Ofcom worries, pension worries.I can see 280p on its way.

[pvb] 24/1/2017 17:44

I've made some equieries but there haven't been any briefings about iffy batches or the latest versions being fault prone.

Thanks for feedback JT.

Though I am amazed by this:

The only concern mentioned by colleagues, is the need to ensure the incoming wires are secure (tight) - the newer versions using 'Krone' style connectors, where as previous versions of the NTE used screw terminals.

Krone IDC connections have surely been in use for decades now? Certainly on the consumer side - perhaps you mean the network side, which we don't usually get to see. But I thought they were already generally used there too.

[pierre oreilly] 24/1/2017 17:41

In its trading statement, the U.K.'s former monopoly operator said it still expects to increase its yearly dividend by 10%, while fiscal third-quarter earnings were in line with market expectations after stripping out the impact of the write-down.

Wisteria, where do you get the reduced divi payments from?

Although 400 mill is a large amount, it isn't really a large amount relative to their turnover or profit, and it's a one off (well a two off, taken over two years). The main thing to me seems to be the knock to sentiment rather than any big financial effect on the company. Seems to me there's no financial reason to stop the highly increasing divi rate, which i hope will get the price back over the coming weeks and months.

[isis] 24/1/2017 17:16

monty - the lower profits are mainly because of the Italian writedowns. Donut.

[wisteria2] 24/1/2017 17:12

Sharp fall in the share price is the underlying worries in regards to future dividend payments!! growth has been eroded for the next couple of years with the knock on of reduced spending re brexit, and rising costs re infrastructure in bt. But all being well should recover from the over reaction re the share price. that's my bet...GLA holders

[griffinred] 24/1/2017 17:00

With no idea of the details, you call for Gavin's resignation. Daft.

[montyhedge] 24/1/2017 16:47

I see they waited until the jolly boys outing in Davos had finished.Sack the board.

[hubshank] 24/1/2017 16:38

All a load of baloney. Perhaps BT reinvested in themselves to add to pension fund deficit.

[montyhedge] 24/1/2017 16:37

BookwormIt's not just Italy read the trading update, it's a profit warning.