Talktalk Telecom Share Discussion Threads

[sux_2bu] 21/2/2018 12:17

Alert popped up from IG saying this share is down heavily again,

Don't follow this share but can anyone tell me why it's continually falling ?

Thank you VM.

[kmann] 20/2/2018 15:31

90P was my buy point, could be an overcrowded trade too, hence BR's closing position. Marshal Wace trading it atm

[quepassa] 20/2/2018 13:29

Well there we are.

Today's FT page 17.

Article headed "Daisy strives to shoot up in size after £1bn sale"

The FT article reports that Daisy (advised by UBS and Oakley) will put itself up for sale as soon as March with a price tag of more than £1billion.

The Ft reports that "Daisy will now push ahead with a formal sales process this spring and The FT reports that "Neil Muller, chief executive, declined to comment on any potential sale but said that the company had an ambitious growth plan to potentially double the size of the business.....".

The FT article carries on to quote Mr Muller who says that "We have proven ourselves to be exceptional consolidators. It might well be that there is a new wave of consolidation we can take advantage of."


The Ft article continues that Neil Muller said Daisy is "very confident" that as well as lifting revenues, the company could double in size through takeovers....

The FT article carries on to quote Mr Muller who says that "We have proven ourselves to be exceptional consolidators. It might well be that there is a new wave of consolidation we can take advantage of."


A fascinating article.


-One notes the mention of takeovers and market consolidation

-One notes Daisy growth plans to double in size.

-One notes Toscafund's interests in Daisy .




Much food for thought about Daisy and what is happening in the sector at large.



Elsewhere, it remains of course not without interest in my opinion only that Toscafund have recently been building a significant stake in TalkTalk.


ALL IMO. DYOR.
QP

[whatsup32] 19/2/2018 17:30

Credit Suisse slashes price target on TALK to .90p . From 1.40p. Sceptical on growth. Held up well considering

[septimus quaid] 16/2/2018 19:02

The biggest risk for a shorter is a surprise bid and a short squeeze, maybe BlackRock have had wind of?

[whatsup32] 16/2/2018 18:28

People/funds that short tend to do a lot more research and have a lot more to lose. I know some people tend to hate shorter’s . Take a look at the top 5 short’s
Carillion
Debenhams
Provident
Sunlife ...
Marks,Spencer’s,Tesco,s . Mostly doing terrible .

[septimus quaid] 16/2/2018 18:12

They’ve been short for a couple of years:

BlackRock Investment Management (UK) Limited 0.18 2018-02-08
BlackRock Investment Management (UK) Limited 1.76 2018-02-06
BlackRock Investment Management (UK) Limited 1.88 2018-01-31
BlackRock Investment Management (UK) Limited 1.92 2017-12-13
.
.
.
BlackRock Investment Management (UK) Limited 0.50 2016-05-16

[whatsup32] 16/2/2018 18:07

They seem to have a good record in shorting Talk. Maybe they no longer see much downside

[septimus quaid] 16/2/2018 17:56

Good Lord, have BlackRock finally unwound their long standing short position (seems to have been around forever)?!

[septimus quaid] 16/2/2018 17:49

Yes, an interesting article, Elon Musk seems to be able to do no wrong at the moment.

[whatsup32] 16/2/2018 17:01

Can’t click and paste . Google ‘space x joins race to make web’. It s really worth reading . Also worth reading is the comments section.

Happy to see it go up for a change for you .

[septimus quaid] 16/2/2018 16:39

Haven't seen the article but is the UK not too far north for decent satellite based internet systems (without complex rocketry, to maintain a geostationary position, the satellites need to follow an equatorial orbit)?

Otherwise, useful tick up this afternoon.

[whatsup32] 16/2/2018 12:45

Excellent article in the FT today ‘space x joins race to make web’ its exploring the possibility of launching 11,000 satellites and make web available on 5G .

Maybe Talk should reconsider ploughing money into cable .

Just a thought

[septimus quaid] 15/2/2018 17:32

1gw, you make a good point (post 2645), shareholder wise, Talk looks nicely packaged up now to "do a deal".

[septimus quaid] 15/2/2018 17:13

I concur, looks like a case of fat fingers (although it took two hours to issue an incorporated correction).

Surprisingly, minimal effect on shareprice between the two announcements.

[whatsup32] 15/2/2018 15:54

Let’s hope so otherwise it’s the abyss as they have a huge holding.

[whatsup32] 15/2/2018 15:37

Sep.

Holding in company Invesco reduced from 16.56% to 13.56% today’s company announcement.

If they are unloading then this will go down a lot further .

You may want to read the announcement yourself first as I may have misread but I don’t think I have.

[septimus quaid] 15/2/2018 15:14

“they” seem to be determined to get it below a quid

[1gw] 15/2/2018 14:06

The downside is protected (in my view) in that scenario in part because ultimately they will reach a level of equity ownership they are happy with and then any downward pressure on the share price caused by their buying algorithms will stop. And in a company as big as talktalk I would hope the impact of the algorithms on the share price is somewhat less than it might be in say a small AIM company - as ultimately other institutions would step in to buy if they felt the shareprice was grossly undervaluing the company. I don't think algorithmic selling pressure (intended to lower the average buying price) is going to stop out one of the big 5 shareholders, but it might at the margin scare out some PIs and weaker institutional holders.

But mainly in my view the protection comes from my belief (which of course may or not be correct) based on limited analysis of past Toscafund positions that Toscafund would not be buying in so aggressively unless it saw a reasonable possibility of a value-adding inorganic move that it could pull off with the support of at least Dunstone and Ross. And in that scenario, I don't believe Dunstone and Ross (or Invesco and Capital) would allow the company to be taken out for a "pittance" so I believe any inorganic end-game would be likely to involve a premium (for shareholders) to the placing price.

[whatsup32] 15/2/2018 13:37

I don’t buy into your argument but say you are correct in that Tosca is using algorithm to drive the price lower . Then how can you say the downside is protected as your previous post.

This share is a dog and will remain a dog for a while yet. Just my view, With apologies.

[1gw] 15/2/2018 13:15

I'm not denying they've lost money on their investments. I just think it's a great shareholder register (in terms of concentration) if they want to push through something inorganic (buyout, sale, merger).

Another possible point is the impact of algorithmic trading, used I believe by Toscafund in particular, on the share price when there's a relatively small float of shares. i.e. if you assume that the 77% held by the 5 shareholders (+ Roger Taylor and Tristia Harrison) who participated in a big way in the placing is not currently available for sale, then that leaves only 23% max available. Toscafund currently have 12% according to the placing announcement and so could reasonably credibly be interested in a significant portion of the 23%. If they are using algorithms to try to keep the price down or bring it down further to optimise their acquisition price, then it seems to me at least possible that that algorithmic trading could be a significant factor in the day-to-day price movements.

[whatsup32] 15/2/2018 12:48

1gw.

Out of those 5 major shareholders , show me one that’s not loosing money on their investment in TALK. Show me one that’s got it right.

RBC capital recommended just before the results . Boy have they got egg on their face.
Tosca have been buying into a falling knife and continues to do so , as does invesco.

These shares are trading lower and now at a 10 Year low ?. I would as kMann sit on the side lines wait for the dust to settle and even then not sure I would put my money in to Talk

[kmann] 15/2/2018 10:56

Yes, your best waiting for all the broker notes to hit, then buy at the lowest/nearest point. Broker targets are a beacon for which ever way the markets are moving, down recently. I'm waiting for 90p

[1gw] 15/2/2018 10:27

My November purchase at 162p hasn't really worked out, has it?

But I've bought some more at 102p just now, so have more or less reinvested the proceeds from sales in August and September. I really like the setup now. By my reading of the recent placing and holdings notices we now have 5 shareholders, including 2 founders, holding 76%:

29% Dunstone
12% Ross
14% Invesco
12% Toscafund
11% Capital

I am pleased to see all the above shareholders participating in the placing and in particular pleased to see Toscafund increasing aggressively. I think talktalk perhaps fits the mould of some of Toscafund's other moves in the past (e.g. Redrow) where they have built a stake in a company where either the founder or CEO or 1 or 2 other shareholders already have a big holding and they can work with those holders to propose an inorganic move (buyout, merger, sale).

So I think more than ever the downside is now protected by the possibility of a sale/buyout. And the placing plus dividend cut put the balance sheet in better shape.

[septimus quaid] 14/2/2018 20:39

Interesting, I hadn't looked at turnover lately, maybe everybody's just hunkering down?