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Online Share Trading

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Telkom

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Lynie
New Contributor
Hi,Any idea what will happen to TKG shares in next ± year? Must I sell or keep?
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7 REPLIES 7
Not applicable
If you read the previous chartist thread, you'l notice john is probbably rolling his eyes, when reading your Q. john, I challenge you to give an intelligent response to this Q.
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Not applicable
Do you have any idea what will happen to the market as a whole? hmmm, yes unpredictable. Anything can happen from today and tomorrow
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jack12
Super Contributor
Acording to the Mayan calander you should sell, the end is near!!
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mad_bob
Occasional Contributor
Tricky question (and not one for day traders.). There are now basically two businesses at Telkom, the core SA fixed line business and the Nigerian mobile business, Multi-Links. If zero value is assigned to Multi-Links, consider the SA fixed-line business: EBITDA crashed down to R8.7bn (from R11.8bn last year). With net debt at +/-R5bn (after the R10bn Vodafone receipts), this could imply an EV/EBITDA of approximately 2.6 times (which is fairly low and might indicate a good buy - especially if you believe management plans to return EBITDA to previous levels). However, never underestimate the ability of TKG management to destroy value - both in the Nigerian business and at home. In my view, the only reason Vodacom became market leader in SA was due to the brave (and inspired) decision in 1993 to take control away from Telkom (despite their 50% shareholding). The fact that this decision was driven by the top management of Telkom at the time is revealing. TKG still have the dead hand of government control close to the business and, until that is gone (and it won't go in the current environment), TKG will continue to substantially underperform. Their ability to gear up the balance sheet (and utilise the R10bn from Vodafone) should send shivers down the spine of the (non-government) shareholders and may yet make the Telkom Media debacle look like small change.
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chivas
Contributor
Possibly prone to an overseas operator wanting to take up a stake. If this happens, watch the share price jump to over R60.00. Even though they are losing money all over the place and have questionable strategies and management, they still link/coonect almost every home and business in this country. Only a matter of time before an overseas player sees the diso***** in the price and makes a move. Also remember the "partnership" signed with AT&T not so long ago. My belief is that there is more to that than meets the eye.
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bangbul
Regular Contributor
The idea of tkg combining fix&cell service show huge potential, but i see it as a 5-10 year investmant.
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richardw
Super Contributor
Thing is, everyone can compete for the big business money in phones and data, and consumer is hugely cellphone, where Telkom will have to work hard to take market share. Now that it doesn't able to hide in the comms minister's skirt anymore, it's a different ball game.
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