Rivals Criticise ACCC for Freezing Telstra Price

The rivals of Telstra (TLS), which is the largest telecommunication carrier of Australia has became furious after the Australian Competition and Consumer Commission (ACCC) decided to freeze the prices of accessing millions of telephone lines through the company. ACCC announced that it would roll the prices over to December 31 of the next year despite revealing a new pricing model in August.

Telstra Faces Uncertainty with Valuation

According to an investment bank, the largest telecommunication carrier of Australia- Telstra (TLS) could see its share price increasing more than 40 percent in the next twelve months. Telstra was rated a buy by USB with a 12-month price target of $4.55. USB also stated that the company was “oversold” and the changes proposed by the Government were not interpreted in the right way. Telstra shares were trading at $3.20 by 11:30 am AEST, which was 2.89 percent or 9 cents higher than yesterday.

Telstra Posts Gain in Annual Net Profit

The largest telecommunications carrier in Australia, Telstra (TLS) has recorded a 10.3 percent gain in its annual net profit. The net profit was about $4.073 billion for the year that ended on June 30 higher from the earlier year’s profit ($3.692 billion). The company has refined its guidance for the year 2009-10 earnings since it is preparing for an extended session of relatively sluggish economic growth.

Search Started for New Telstra CEO

Telstra (TLS) has formally announced that it has started to hunt its new CEO in replacement to Sol Trujillo, who is the current chief executive officer of the company. Telstra director Donald McGauchie has already commenced the search for a replacement, hiring search firm Egon Zehnder to compile a list of candidates. Trujillo, who is currently in Davos, Switzerland, to chair a session at the World Economic Forum has not denied the speculation.

Australian Market Preview

Here is an update on the different sectors of Australian market from market analyst Macquarie Research Equities.

Record Oil - The Impact of Black Gold

Telstra Corporation (TLS) Update

Telstra Corporation (TLS) has a target price of $4.90 and an Outperform recommendation from Australian Stockmarket analyst Macquarie Research Equities.

Telstra Corporation (TLS): Do You Own a Mobile Phone?

Telstra (TLS) Update

Telstra (TLS) has a Neutral recommendation and a $4.90 price target per share from Australian sharemarket analyst Macquarie Research Equities.

Telstra (TLS): Bouncing Off Resistance

Telstra (TLS) - Neutral Recommendation
Current Price: $4.47
Target Price: $4.90 (~7.2% Upside)
P/E: 14.8 X
Div Yield: 6.3% (100% Franked)

Telstra (TLS) Technicals

Telstra has bounced off its $4.40 Support / resistance level and is currently trading at $4.47. Next resistance levels are at $4.55 and $4.70 before hitting MRE’s 12mth target price of $4.90

ASX Top 10

Here is a list of the ASX top 10 (Australian Stock Exchange Top 10) as of close of trade on Friday, February 1, 2008. This list shows the top 10 companies with the largest market capitalisation listed on the Australian Stock Exchange. Market capitalisation is the price of one of the Company's ordinary shares multiplied by the number of shares in issue. Figures presented beside the company name and ticker symbol is the company's market capital in $ million.

  1. BHP Billiton (BHP) : $129,376 million

Macaurthur Coal (MCC) Best Performing Stocks

Macarthur Coal (MCC) was the overall best performing stock taking in a 19.54 percent increase. Among the best performing companies for the past week (week 41 of 2007) on the Australian sharemarket were a mixture of chemical manufacturing, communication services, aviation, coal mining, metal and transportation: Incitec Pivot (IPL), Telstra Corporation (TLS), Qantas (QAN), Macarthur Coal (MCC), Mt. Gibson Iron (MGX), Cabcharge Australia (CAB). These best performing stocks for week 41 managed more than 5.48 percent gain by the end of the trading week.

Telstra (TLS) Update

Telstra (TLS) shares have fallen lower today after the government announced yesterday that it will conduct a competitive bids process to enable the build of a high-speed broadband network. An expert panel has been appointed to prepare guidelines for the bid process (including setting a timetable for the process) and also to conduct public consultation. The panel will not choose who builds the network, but can clearly influence the process with its findings. The government will control the final outcome. Timing remains unclear: The announcement was not conclusive on the critical issue of timing surrounding an FTTN build, simply stating that the expert taskforce will “settle a realistic timetable for the bids to be submitted and assessed”. The taskforce’s conclusion on timing could be anywhere between two months and a year, with a shorter timeframe favouring Telstra, and a longer timeframe suggesting a broader review of industry structure ahead of any decision. Given Telstra (TLS) is the natural builder of this network due to its existing infrastructure, delays to this process are likely to indicate dissatisfaction with the panel on pricing and access issues in Telstra's submission. A post-election result also introduces the risk to Telstra from Labour's broadband policy, which is effectively a form of network separation. A decision before the election is still possible, but unlikely: Given legislative change is required before any of the existing bids would be viable, a pre-election resolution on this issue will be difficult to achieve. Legislation would have to be passed during the two parliamentary sitting weeks in September (beginning 10 Sept and 17 Sept). However, to allow due process, a decision on the successful tender would probably have to be tabled during the August sitting weeks (beginning 7 Aug and 13 Aug). This would give the government and expert panel just under two months to accept tenders, announce a successful tender and draft the appropriate legislation. Ongoing uncertainty has been a positive for all players: A lack of clarity on timing around an FTTN rollout has been a positive for all industry players. Network operators are reluctant to drive down pricing on existing fixed line products given the uncertain service life for some infrastructure investments such as DSLAM equipment. This has delivered a very stable environment for pricing outcomes on fixed line services over the past six months (evidenced by increasing broadband ARPUs), that is likely to continue throughout the rest of the calendar year. No change. The introduction of an expert taskforce to assist in this process has been flagged in the media for a number of weeks. The critical data point will be any indication of timing around the process. Broadly speaking, the longer the process takes, the greater the risks to Telstra.

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