Fixed telecoms is out the window...no one goes to sleep at night wishing for a fixed line....so many alternatives, a declining market, disfunctional management....i am actually puzzled at why some people still look at this as an investment...
I still say something very strange is going with Telkom. It is not that Telkom does not give worse service than before or even when the share price was up in the R80's. If I pick up my phone it works. My ADSL was down 'n minimum of time during the last few years and even when it was down it was repaired in a jiffy by a friendly competed service man. The website is operational and even the desk service works. So what is wrong. What if a competent management takes over and the share shoots back up to R80 or more? Who is going to sob bitterly?
New loss making ventures like 8ta, their TV venture and investments in loss making African operations have brought them too their knees. Desperate (poor) attempts to stop the eroding of fixed line customers have cost them dearly.
The consumer does not forget. The bad service I got from telkom about 7 years ago with the non-functional dialup connection and long waiting call centres still ring a bell in my head. I still remember their "tiedieti tidietideti" call waiting song. Just like the consumer realised how NOKIA used to give them half phones and they had to buy the second one for another function.
I share your sentiment especially the "tiedieti tidietideti" but fact remains. In 2007, even with the horrible service, the share price was up in the R90's. I did not even have a landline at that time due to the anger I felt towards Telkom, much less invest my money in them. The question however remains. Why is Telkom still there. Is there a sinister power keeping them afloat. The EPS is still positive, the PE not to be sneeszed at and a formidable market cap. Despite embarking on lossy projects nothing has really changed during 2007 to 2013 except disasterous management. Is Telkom on it knees?? If not may there be a lot of money to be made by investing at the right time?
LOL. The reason I ask is that you are able to type in bold and also create paragraphs on the SBK chat forums. I have been trying this for a while and I have come to terms that my interface is not rich text enabled but yours is?
Remember telkom sold it's soul to Vodafone by unbundling vodacom in 2008/9 period. And ever since then, bad results starting following because vodafone took the backbone as well. It took them a while to realise that fixed line service is stone age and that is why they are mutanting the wireless system again. I hear what some say, but my opinion is that a company can still survive even if there is bad management only if it still has the right product at the right time.