I would advise everyone who have SPARE money to invest in TKG shares. The price on the level of R18 is nonsensical. Manipulators are dropping the price selling and buying their own shares sacrificing a friction of their own money. NOBODY SANE WOULD SELL A SINGLE SHARE FOR 1/4 of its very conservatively established value. In the process MANIPULATORS buy the shares of those individuals who panic.That is their trophy.
It not a valuation problem, but clearly a strategy, business model, management problem, and a huge one at that. The value has been stripped from this company with the sale of it's Vodacom shares. The only thing left is shrinking core fixed line business and struggling new assets trying to play catch up with more competent mature Telecoms players. Add some government intervention and you've got a recipe for disaster. My advice is swop all Telkom shares for either Vodacom or MTN. Telkom future looks bleak to say the least. The share price is a reflection of what we all know already.
Management .... you mean mismanagement problem :p. The company spends millions that was not properly authorised and then while they sift through red-tape they loose millions. When it is reported, there is not recourse against responsible persons. The company disinvests from assets that are making money, and then invests in projects that bleed capital from the business. When they sit at a juncture to try and curb losses, decisions cannot be reached. Are there even assets left that justify the current share-price?
Because our government have not given a permission for taking over majority of Telkom (and complete control of RSA telecommunication)by private hands. Telecommunication is a strategic field for any country the same like generation of electricity. Imagine Telkom and ESKOM being in hands of enemies of RSA (and BRICS). RSA would be forced to fight on the side of NATO in Syria, Afganistan, Iran and other murderous adventures of world criminals.