BT share price woes

Pincher

http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1477548939763785300.html

"LONDON (Alliance News) - BT Group PLC on Thursday maintained its outlook for its full financial year and upped its interim dividend, as it reported a rise in profit for its first half.

The telecoms company reported a pretax profit of GBP1.39 billion for the half year to the end of September, up from GBP1.27 billion the prior year, on revenue of GBP11.78 billion, up from GBP8.82 billion.

It proposed an interim dividend of 4.85 pence, up 10% from the 4.4p it paid the prior year.BT reiterated its intention to grow its dividend by at least 10% in both its current year and the following year."

What's not to like?

bowlhead99

Pincher wrote: »

What's not to like?

If everyone loved the results compared to their expectations, the price would not have ended the day down, and it would not be at a level that's lower than at any point during 2015.

Perhaps the company is underplaying its prospects so that Ofcom doesn't give it a hard time about being very profitable and force them to spin off openreach etc.

Gadfium

The shareprice always seems to increase before the results and then drops back afterwards.

themanfromamarillo

BT are one of those big legacy companies with attractive market positions and dividends but with scary looking pension deficits. How much do people take stuff like that into account?

Thrugelmir

Pincher wrote: »

What's not to like?

Pension deficit?

Pincher

Thrugelmir wrote: »

Pension deficit?

If you think of the pension as what is holding the share price back, imagine what can happen if the pension burden is removed. A hot air balloon without the sandbags.

Somebody in Human Resource is working on a plot to short change the BT employees. At my old company, they tried to bribe us to move to a money purchase scheme, away from the final salary scheme. I don't think BT is any less capricious.

In the mean time, I am happy with the progressive dividend.
In three years time, when the dividend gets to 5%, relative to 369p, and NS&I is paying 0.5% on Income Bond, I will thank myself from three years earlier.

Pincher

BT.A is 382p as I type.

The sword of Damocles seems to have been lifted.
I assume it was the break up threat from Ofcom.

The wet dream is,

Vanguard UK starts retail operation in the UK, just in time for the £20k ISA allowance. It gets covered in the news, and billions pour into passive funds, not just Vanguard.
FTSE constituents get buoyed up from the flood of money.
The uptrend gets picked up by computer automatic traders, so they keep buying.

So, BT.A gets to £8, in August (8th month), on the 8th.
Preferably just after the ex-dividend date.

The other wet dream is a night of passion with Kate Upton,
and Monica Bellucci insists on joining in.

Pincher

BT.A touched £4 today.

Went ex-dividend on 29th December 2016. 4.85p per share.

They are keeping their word on the progressive dividend.
With the dividend cover of 2.37 (Hargreaves Lansdowne), there is lots of upside potential.

Not selling.

Even for the 2018 crash, BT.A could end up being a defensive stock, like TESCO. People have to eat, internet addicts have to browse. Yes, I mean you.

themanfromamarillo

BT down 17% today after some problems were revealed with its Italian unit

economic

good time to buy?