Talktalk Telecom Share Discussion Threads

[septimus quaid] 08/5/2017 08:47

Agreed, the reaction to the hacking of Talk was completely disproportionate compared to other companies who have suffered the same fate.

Harding took a lot of stick on how she handled the situation but all she basically did was "come clean".

...maybe a touch of hubris on her part.

If there is to be a reduction in yield, and the 10.58p remains as promised, then this will have to come out of the Dec 17 divi (previously @ 5.29p paid 16/12/16).

Even a complete cancellation of same won't give a 50% overall reduction in annual divi.

Tick, tock, Wednesday's shock

[muscletrade] 08/5/2017 08:16

well, yes some publicity can be bad. The hack publicity was bad for Talk even though many many companies are being hacked all over the world and never experienced the angst that Talk managed to generate.

Anyway, a lesson learned and perhaps it means that Talk is now a better company for it.

[septimus quaid] 08/5/2017 07:56

I know what you mean by blah, blah but both articles over the weekend have brought Talk back into the spotlight.

One of those two articles was referred to by the BBC this morning.

Probably a bit of dirty laundry re-airing for the uninitiated but all the bad/good news is now in the open.

Can publicity be a bad thing?

[muscletrade] 08/5/2017 07:33

Having read both articles have personally drawn conclusion that it is just more blah blah that adds nothing to the debate and is a rehash of already well worn views.

The company has already pledged that dividend would be the same 16/17 as the previous year. Do we really think Dunstone first action would be to renege on that pledge, I don't think so and are they really going to make a decision on 17/18 financial year yet?

A div cut may well be a good move for next year but we already knew that....as said just blah blah lazy sunday journo rehash stuff.

Even if they do cut this 16/17 div it would not be a bad thing if it was used to help return to growth

All IMHO..DYOR.

good luck all for wednesday.

[au24] 07/5/2017 21:32

Could well go the other way rather than down as GROWTH becomes the new next chapter for TALK.
There is also the thought of it falling to a large predator,which has been voiced here before.

[leafysuburb] 07/5/2017 19:55

I had been looking to buy back into TalkTalk off a recent trade and was tempted as it approached £1.90 on Friday.

I am now glad I didn't.

If there is a cut in the dividend coming on Wednesday and its the 50% suggested then there will be many who sell up or move elsewhere.

I might instead take a further top up in one of my other recent purchases where news is due and wait for things to settle down.

Short interests had been steadily increasing again and it looks like those have called it correctly and might increase the pressure.

[septimus quaid] 07/5/2017 12:40

The Times article (hard copy) initially suggested a cut in divi (to allow room for manoeuvre for investment) but then tempered this view by saying the recent BT settlement might help mitigate the need for a divi cut.

I know the Baroness has taken a lot of stick but she did an awful lot of (successful, as it turned out) campaigning to rein in BT.

The Sunday Telegraph (again hard copy) seems to be very confident that a divi cut will be announced. "The Sunday Telegraph has established that TalkTalk will announce a cut...".

Goes on to say possibly 50% cut.

I am more interested in the divi myself but the 8% yield is looking a bit unrealistic. 4% will have to do, although we might get a bit of grace for this year.

[au24] 07/5/2017 10:33

Lots of advertising on Smooth and LBC Radio of late as well as selling on town high streets.

[1gw] 07/5/2017 10:28

The Telegraph seems to think a divi cut is a done deal, the Times seems less certain.

But if it does happen, how will the market react? It could be seen negatively. But it could also be seen more positively as a long-overdue grasping of the nettle - giving the company the room to invest in growth. I guess Dunstone has the chance of doing this now while he is in his honeymoon period with investors - and can maybe sell a sufficiently inspiring story about a return to growth to offset the drop in yield.

[gotnorolex] 07/5/2017 10:08

TalkTalk divi at risk as price war looms

[au24] 05/5/2017 21:28

Total dividend for year 2016 = 15.87p

[au24] 05/5/2017 08:59

I have opened a position this morning. Having kept an eye out here for some months,have now decided that this is the time.

[septimus quaid] 05/5/2017 08:54

Broker forecast according to HL (02/05/17):

Deutsche Bank reiterates as a buy

[septimus quaid] 28/4/2017 16:34

Hoping TALK might breach the £2 barrier before BHW but looks like it wasn't to be.

SP probably tread water now until a clearer picture emerges via prelims on 10th May.

...news leaks excepted

[quepassa] 25/4/2017 08:55

In addition to HSBC's upgrade, on same date 21st:

Credit Suisse Issue Broker note and REITERATE their OUTPERFORM recommendation with an unchanged PRICE TARGET of 260p.


HSBC see 25% UPSIDE.

Credit Suisse see 30% UPSIDE.

ALL IMO. DYOR.
QP

[1gw] 24/4/2017 17:23

Disclosed short positions.

Blackrock still going for it:

Short
0.50% 17th March
0.65% 27th March
0.71% 29th March
0.80% 10th April
0.93% 12th April
1.05% 13th April
1.10% 18th April
1.20% 20th April

[garycook] 23/4/2017 09:27

TalkTalk Telecom Group (LSE: TALK) currently yields exactly 8%. Yesterday it was yielding 8.33%, but Friday’s 5% share price surge has trimmed that slightly. The surge was triggered by a positive note from HSBC, which upgraded its investment rating from hold to buy and hiked its price target from 175p to 250p. With the stock currently trading at 198p, that would suggest a potential 26% upside, if HSBC is proved correct.

This will only go a small way to reversing the disastrous performance of the past two years, which has seen the share price hammered by multiple cyber attacks, which cost the group £42m and contributed to the £18m fall in profits. TalkTalk also suffered reputational damage, when it emerged that the industrial scale fraud operation stemmed from Indian IT service firm Wipro, which it had contracted in 2011 to provide some of its call centre work.
Quite a bundle

Yet recent Q3 results were promising, with re-contracting rates in the third quarter stronger than expected, low churn, and a strong legacy business of loyal customers. The multi-services entertainment group is in recovery mode, its share price up 15% in three months, as it builds on its niche position in the UK telecoms market and looks to take advantage of greater demand for data and product generation, both for personal and business customers.

It is in a five-way stand-off, battling to hold its own against big boys such as BT, Sky, Virgin Media and Vodafone, but has held its own so far. Forecast earnings per share (EPS) growth of 55%, 11% and 12% over three years should drive down today’s pricey valuation of 22.5 times earnings to a far more acceptable 12 times, although the yield is still expected to stay high at 7.1%. This could prove a good call.

[pierre oreilly] 22/4/2017 09:01

There's no problem with the figures supporting the divi in pence per share terms. What makes the yield so high is purely the very low price which, to my mind, is still suffering from the hack. Although sentiment is now ok, the hack just leaves so many who sold out and haven't bought back. People are sometimes put off by such a high divi and assume something must be wrong somewhere. The cost of the hack was minimal, and the numbers simply should support a price at the previous hack level or greater, so about 450p imv, giving a yield of around 4%. That's where we should be imv, but of course there has to be buys to get there. Event regulator rulings have favoured talk, thier offerings are the best if you ignore short term discounts, and all looks rosy to me as it always has done, it's just that the hack spoilt things.I've currently renewed my mobile with TT for another year, and my fibre contract runs out in a few weeks. The best non hassle deal is 30quid pm for medium fibre plus all calls, fixed for 2 years by renewing my TT contract. Anyone got anything better, ignoring switching cashbacks ?

[garycook] 22/4/2017 06:17

Totally agree.

[septimus quaid] 21/4/2017 15:37

Also today, according to HL, Credit Suisse reiterated an outperform @ 260p

If TALK can just pull through with enough to maintain the current dividend then, at the present share price, these will start to look remarkably cheap (yield 8%)

[leafysuburb] 21/4/2017 12:20

Looks like an broker upgrade to 250p is driving things today.

I'm expecting it to strengthen a lot further when Mr Dunstone arrives.

Dyor etc

[quepassa] 21/4/2017 08:22

HSBC today UPGRADE their recommendation on TalkTalk(from HOLD) to BUY and significantly increase their PRICE TARGET (from 175p) to 250p.


QP

[1gw] 21/4/2017 08:04

Certainly seems to have had an impact on the early share price. Let's hope it's the start of a trend.

[muscletrade] 21/4/2017 07:11

HSBC upgrade Talk to buy this morning and increase their share price target from 175 to 250.
thats the first upgrade from anyone for a long time and is a significant shift in sentiment.

[septimus quaid] 20/4/2017 14:05

At a quick glance, I'd say well over 90% of today's trades are "automatic"