Is it just me, or has the investment community as a whole misunderstood here. Telkom's PE is not 5.81, as stated by OST. It is closer to 13 right now (if you adjust for the once off medical aid reimbursement - whatever that is). So still not bad - assuming Telkom can keep posting gains, but there isn't an analyst out there that seems to think Telkom can pull that off - (if the reports are to be believed) - yet the price keeps climbing.
Sometimes I get the feeling that the GEPF and prob PIC are buying a lot of their own shares (indirectly) to boost this share price so that the government becomes richer. Its a ***** company which even more incompetent management. Trade it and make money but do not ask any other questions
Add to that the purchase of another company with tricky financial disclosings(BCX). They are paying full price (22 times earnings) for a company in the same field as the star performer - EOH. Only EOH has consistently performed at 30% growth for years vs BCX up and down (interims have a drop in HEPS). Nothing to really wow the shareholders with here, IMO, but the market seems to love it!
Just a question, is there any other major company that actually puts down lines for telephone or adls? As far as I know you get service providers (Afrihost, Web Africa, Mweb) but they all have to work via Telkom for line rental?
until local loop unbundling takes effect, in which case other telcos can do the last mile provisioning to your house. Then all kinds of hell will be let loose on Telkom, And for those of you that think all Telkom has to do is lay down some copper or fibre to your home and sit back and roll in the cash - think what happens every time you call the Telkom call centre about a service outage. The fact is, fixed access is a commodity, and the prices can only ever go down. The ISP's are the profit margins and Telkom has to compete with a bunch of ISP's providing services on its own fixed line infrastructure - that has to suck