Telecom Plus Share Discussion Threads

[scottishfield] 04/12/2015 11:25

ditto cestnous.

[cestnous] 04/12/2015 11:22

So did KNOS but that went up when it went ex div. Still holding.

[plasybryn] 03/12/2015 15:24

It was bound to drop today as it has gone ex dividend. It will recover soon enough.

[salpara111] 03/12/2015 14:41

Yes, rather disappointing, I had hoped that the pretty solid results would enable a breakout from this current trading range but it would appear not and clearly waiting for a 22p divi was not my best decision.
I have nowhere else to put the money right now so I am inclined to hold at present but I fear that a run to the £14 area is just wishful thinking.
If another interesting opportunity presents itself I think I will exit here.

[davr0s] 03/12/2015 13:22

Oh well back to the range. At least there was a divi in there

[deadly] 03/12/2015 11:48

That old myth again; SETS stocks don't have mm's to manipulate them.
The price drops because otherwise the divi would be a free gift.

[wanttowin] 03/12/2015 11:40

assume this is the mm's manipulating the share price to cover the divi

[plasybryn] 02/12/2015 15:37

22p paid 18th Dec.

[wanttowin] 02/12/2015 12:03

XD date tomorrow.

[scaramanga1906] 30/11/2015 21:55

On the long term chart, £12 looks a key resistance point.

On the upside it bounced off it several times in 2013. Then it bounced off it several times in 2014 before a decisive break lower. In early 2015 a rally failed there before we fell to the lows of 725p. Then there was resistance there in August after the rally from 725.

Maybe a Santa rally could get it through £12 by the end of the year?

[davr0s] 30/11/2015 19:43

Just market waking up that this pays circa 5% divi and still growing. It's only getting back to where it was a month ago but momentum seems to be back with it

[droid] 30/11/2015 14:57

Can this be simply a technical move or is there something brewing ?

[cestnous] 30/11/2015 13:17

13.80 next stop?

Edit; Now up 5%

Edit edit; 6.3%

[wanttowin] 27/11/2015 12:46

divi next week Sal

[salpara111] 27/11/2015 10:28

Well the results seem to have been met with indifference.
I am minded to take my money off the table and bank a fairly decent profit.

[cestnous] 27/11/2015 08:10

From I.C. today

Telecom Plus bundles growth
Telecom Plus (TEP) weathered fierce competition and falling energy prices to drive adjusted pre-tax profits up a tenth to £22.5m in the six months to September. That reflected its continued success in attracting consumers with cheap bundles of electricity, gas, broadband and both landline and mobile telephony.
The telecoms and utilities supplier, which trades as Utility Warehouse, grew its customer base by 2 per cent to more than 595,000. The total number of services it supplied rose 3 per cent to about 2.15m. Lower wholesale energy prices threatened to erode its price advantage, but rivals funnelled their savings into short-term deals rather than lower overall prices. Telecom Plus has avoided aggressive introductory offers and subsequent price hikes in favour of consistent pricing.
Management has focused on bundling services to boost average revenue per user and discourage customers from switching suppliers. Telecom Plus is supplying and installing energy-efficient LED lightbulbs for free to those who sign up for five or more of its services. This led to 45 per cent of new customers taking five services in recent weeks, compared with 30 per cent in the reported period.
Broker Peel Hunt expects EPS of 55p this financial year, rising to 63.1p in the year to March 2017 (from 52.7p in FY2015).
B Telecom Plus has proved that its cheap bundles can prosper in a difficult trading environment, and the mooted addition of services as diverse as insurance and water is promising. Yet its shares trade at a reasonable 17 times forecast earnings for the current financial year and come with a chunky forward yield of 4.9 per cent. TM
Buy

[davr0s] 26/11/2015 15:17

Nice test and rejection of a sub 1050 base level. Could be tempted to add if this moves on from here....

[plasybryn] 25/11/2015 16:52

I would certainly agree that if TEP should experience a further correction it will offer a no brainer purchase, but unfortunately I think that opportunity will not materialise.
The strategy of the Co. is of course well understood already by investors and priced in and as the market irregularities get sorted by Govt. intervention, players like TEP with ethical, level pricing policies will increasingly benefit.

In the meantime the book is moving to higher ticket, more profitable clients and as such, and as psmith's points out, this is already IMO a low risk investment.
DYOR.

[wanttowin] 25/11/2015 12:26

Indeed gleach23, Smithy has been consistently deramping this to suit his shorts. Alas his forecasts of £6 this Christmas, have now been adjusted to next Christmas, moving the goalposts eh?
Obsessed, deluded and still bitter at the recent rise from £8 which he missed. Hence he constantly gives us a history lesson about the supposed correct calls he made in the latter part of the 18th century !
Decided to filter him also, bye bye Smithy.

[gleach23] 25/11/2015 11:24

I see the discredited dynamic duo wipo and psmith are back in tandem as soon as any news comes out, no doubt desperate to deramp.

Thanks goodness for the filter function!

[psmith1964] 25/11/2015 10:55

I agree Plasybryn that what you suggest is the right strategy for TEP as a company but the problem is this is an investment board and as an investment with that slow growth philosophy the share price is currently priced for faster growth and IMHO at todays price it is overpriced.

Only time will tell if I am correct but I think a major correction is on the cards if the last 6 months represents the future growth. When this correction occurs and if it can keep to its current growth strategy then yes it will be one of those shares that will become a useful addition to any income portfolio with little risk attached to it.

At the current rate of growth 1 million customers would be on the cards in around 15 years.

I also believe profits will in the future become more squeezed as tariffs drop in price due to wholesale prices dropping and as buildings and appliances become more energy efficient so income will also drop which all adds up to the share price looking very toppy at the moment.

I predicted a fall on the iii board back in September 2014 when the share price was 1400p for the same reasons I state above and I don't believe we have seen this bottom out yet.

All IMHO , DYOR as ever.

[plasybryn] 25/11/2015 10:34

This is an exceptional well run Co. that is not chasing growth for growth sake.
It is more about attracting higher ticket customers.
The ethics are simple. Most "big" players attract new customers in on special deals which impact on the cost paid by loyal (inertia) customers.
Telecom Plus wont do that. That makes it more difficult in a highly competitive market to attract new customers, but those with a brain will realise that long term this is better for them.
Furthermore, the Government is trying to help us, by making this aggressive customer strategy inappropriate.
Overtime Telecom Plus will be the winner and in the meantime we need to focus on quality customers who appreciate service and appreciate an open, transparent and ethical pricing policy.
Good luck to TEP & all shareholders.
We should be out recruiting new customers and getting our free vouchers for doing so!

[wipo1] 24/11/2015 18:48

CR kiss of death