Does anyone have insight as to why the Telkom share price has only gone down since recent 'good' news. The R19 special dividend was confirmed as expected and the competition commission has given the nod. Surely the sum of the parts is worth more than the whole? Or is this the bargain of the year? What am I missing ?
The dividend has been confirmed, but not the date - that is only next month. Then we will see the R19 drop... This is going to be the bargain of the year. Vodacom is worth more then Telkom is at the moment. Telkom is Mahala!!! Surely must be worth at least R40 after the split of vodacom. Who is ready to make big money?
The R19 drop would normally come after it is paid. I think Telkom is undervalued because most people including the talking heads and thought police simply loath Telkom as an organisation. Hardly based on logic.
For the last few years, most of Telkom's profit was derived from Vodacom. Now they are selling off their most profitable asset. Perhaps there is good reason for the loathing. If and when Telkom can get rid of the albatross around it's neck.... the fixed line portion of it's business.... then it's shares will look attractive.
Perhaps you are proving my pointregarding the dislike of Telkom. Surely our object should be to find value and thus make money. 15% of Vodacom is being sold. We get R19 per Telkom share for that. Plus the balance of Vodacom shares will be given to Telkom shareholders at listing plus probably another divi of around R5 in June. Plus the Telkom value. Even if it's only asset value and sold off on Bid or Buy who cares? If you add this lot up it comes to a lot more than R111 a share.
Ask myself why Telkom sell most proffit asset? Are they idiots? Fact is, Vodacom-deal prohib Telkom to run own cell-biss; even in other Afr&East countries it's opperating in. Five year outlook for combo service of fixline-MWEB(Afr)-cell seems better than gold. Maybe in five sellers&non-buyers could see themself look idiots. I'm buying!