Buy Hold Sell

Cast your mind back 12 months and it will be near impossible to recall anyone sticking their neck out to back Telstra. As we sit today, shares in one of Australia’s boring old industrials has staged a 50% price rise and paid a couple of fully franked dividends. 

The list of reasons not to like Telstra is seemingly endless. Awful customer service, declining earnings, dividend cuts, new competition and margin pressure resulting from the NBN. Today, however, the competition is in disarray, there are some serious doubts on the future of NBN and Telstra is still standing... with the prospect of 5G on the horizon, could Telstra be sexy again?

I guess there’s a number of catalysts. One is the upcoming 5G and the sex and the sizzle that 5G brings to Telstra. It’s a long time since we talked about Telstra in that kind of light ... There’s a lot of competition that is distracted while Telstra has one clear message; ‘We have got 5G.’

Matthew Kidman from Centennial Asset Management hosts Michael Wayne from Medallion Financial and Henry Jennings from Marcus Today in the latest exclusive brought to you by Livewire

Discussion points

  • Catalysts behind the surge in Telstra’s
  • Climbing the wall of worry with falling earnings and dividend cuts
  • The impact of NBN and how this might play out over the coming years
  • Telstra’s competitive advantage
  • Which telco is the best to own and why?
NBN has really hurt the sector, it has been a race to the bottom to try and win customers and that has really put margins under pressure.

 



Comments

Please sign in to comment on this wire.

rudy pilotto

5G speeds will make the NBN obsolete. At present you can only get 100 mbps as a maximum for the NBN, that's the minimum for 5G. Unless the NBN ramps up the speed significantly say to 500mbps we have wasted billions of dollars on a white elephant.

Mark Marshall

The NBN network is required for the COMPLETE delivery of 5G throughout Australia, and it will serve as a very important piece of infrastructure when we start to see congestion on the 5G network.

Roger Fraser

Be that as it May and I do not disagree with any of what you say here but???? 5G is untested for EMF radiation and health concerns end long term effects on everything that lives. several NBN Indian technicians have told me that in India with 3G and 4G towers. "the coconuts don't grow,The bees have gone,The birds have gone. Are you really sure you want this? Some Euro countries are not so sure. Do some reading.

Craig Brighton

5G is still years away. Even when it comes 4G will be doing all the heavy lifting across voice and data

andrew mulholland

Telstra will end up owning 5G and a reasonable stake in NBN. Its been a buy from the mid 2s.