Telecom Plus Share Discussion Threads

[typo56] 13/4/2018 14:59

Telecom Plus, the owner of the Utility Warehouse multi-level marketing business, fell after house broker Peel Hunt said short-term trading looked “somewhat dull”. Ahead of a trading update from Telecom Plus due on April 19, Peel Hunt cut earnings forecasts to reflect “stressful conditions for incumbents and new entrants” in the UK energy market.

[typo56] 13/4/2018 14:59

Telecom Plus, the owner of the Utility Warehouse multi-level marketing business, fell after house broker Peel Hunt said short-term trading looked “somewhat dull”. Ahead of a trading update from Telecom Plus due on April 19, Peel Hunt cut earnings forecasts to reflect “stressful conditions for incumbents and new entrants” in the UK energy market.

[robinnicolson] 13/4/2018 13:08

Thin trading volume.

[saltaire111] 13/4/2018 12:57

This is quite a drop for what should be a solid utility play.

Nothing obvious going on.

Salty

[saltaire111] 13/4/2018 12:57

This is quite a drop for what should be a solid utility play.

Nothing obvious going on.

Salty

[napoleon 14th] 13/4/2018 12:48

SO WHY THE 10% DROP?

[robinnicolson] 13/4/2018 11:12

Peel Hunt downgrade. Short-term trading "somewhat dull".

[woodcub] 13/4/2018 10:45

maybe it's the Gazprom story then? can't find any news yet online about the drop.

[scallywag] 13/4/2018 10:32

From half year results last November:
"We particularly welcome the proposed legislation to introduce a cap on the energy prices charged to all consumers on standard variable and other default tariffs; this will go a long way towards creating a fairer energy market with lower bills for millions of less-engaged households, whilst retaining a highly competitive and dynamic market with over 60 domestic energy suppliers. In contrast to other larger energy suppliers, we would expect to see faster Member and service growth resulting from higher levels of Partner confidence in our improved competitive retail position; we anticipate that the protection afforded to our energy margins by our long-term supply agreement with npower (where the wholesale cost of the energy we supply to our Members is linked to standard variable tariffs of the ‘Big 6’), combined with a further reduction in churn, will translate into faster earnings growth.

[hession] 13/4/2018 10:14

Woodcub,I can't imagine the price cap would be as low as the poster suggests. UW are supplying gas at around 3.4p per kWh whereas some SVRs are over 4p. Tep believe that the cap will work in their favour as it would stop the Big 6 from cross subsidising new customers by charging loyal customers a much higher tariff.

[hession] 13/4/2018 10:09

I wonder if its anything to do with the hold that Gazprom has on European gas supplies and the possibility of military strikes in Syria which could lead to retaliation by Russia?

[woodcub] 13/4/2018 10:05

not ex-dividend, this from a poster on the lse board, as a possible reason:

The Government is consulting on the price cap for this winter. This is likely to be fixed well below the level that TEP sells energy to its customers. This will expose the high gross margins that they are making compared to the other players in the market and they will have to reduce tariffs. Got to be a good sell opportunity.

[macswell] 13/4/2018 10:04

Speculation about energy price caps maybe?

[saltaire111] 13/4/2018 08:54

Did it go exd?

[macswell] 13/4/2018 08:54

Nope, but The was a 20k sale late yesterday so maybe someone knew something?

[cheaky monkey] 13/4/2018 07:59

Anyone know the reason for the drop today?Thx

[hession] 20/12/2017 20:18

Superadams,yes I see what you mean,but my bets and forecasts have never consistently worked out.

I feel the difficult period of energy pricing is now behind us, as newer players are buying on the spot market which served them well until now, but will not in the current market.

So, Distributors can now confidently offer competitive pricing on energy especially as the Big 6 won't be able to cross subsidise new customers for much longer.

Not trying to sell you, but there are new services in the pipeline so I am comfortable holding on for the longer term.

[superadams] 24/11/2017 21:23

Hession, all sounds v. re assuring but my benchmark is annual return of 15% so 4% divi yield leaves 11% eps growth which just isn't happening right now.

[hession] 24/11/2017 15:46

Charles Wigoder is never short of ideas, but will only implement them after careful trials. TelecomPlus is being advised by the former CEO of a major US insurance brokerage which gained massive market share through network marketing. Growth through diversity, so buying on the dips

[cheaky monkey] 20/11/2017 16:45

Interims tomorrow, usual weakness ahead of this. So frustrating this share, wouldn't it be nice to have an "ahead of" expectations tomorrow, or that nice special dividend that gets the juices flowing...GLA

[superadams] 19/11/2017 20:20

Yes, Dogwalker, I sometimes wonder if Wigoder has lost his Midas touch. Bit like Hammond now - needs to come up with something to steady the ship.

[dogwalker] 19/11/2017 16:36

No. Could be ahead of results on Tuesday in which they make one of those special announcements of theirs ? ' Free light bulbs for any investor who buys shares off the company for £10, so that the company can then spend the money on something yet to be decided'.

[superadams] 19/11/2017 12:23

Fell Friday according to Daily Mail on broker comment. Anyone know more about this ?

[hession] 09/11/2017 12:35

Interim results 21 November 2017.

[hession] 08/11/2017 16:19

The home insurance offering is having steady take up. The company has increased staff levels to deal with it.