Buying bruised shares

rrwfotr

Cozworth806 wrote: »

As for BT, I also hold those but bought in at 266 and then averaged down. Now in at about 250p average. These should be fairly secure at these levels, but companies like Carphone warhouse and Sky with LLU exchanges are eating into their natural profit streams. They are countering this but expanding into consultancy etc.

None of this constitutes advice of a reconmendation

I looked into this and yep it's a fair point, this week a ruling was/is being made by EU to stop the very harsh regulation on BT which should improve BT profits in the LLU space. I've always found it most strange when the likes of SKY has a monopoly situation on pay TV which is owned by a select few which has no such regulation that makes any impact on them, but when it comes to BT which is owned by millions the regulator seems fit to destroy all the value of BT core business something seems quite "fishy" when you look into it... It's like saying you got a unique product which millions of people own but then holding them down so others can come in and then make you give away that product at breakeven point and then say that's a fair way to do business, seems very dodgy. I know you need regulation but such hash regulation almost seems very improper.

tradetime

Yeah but BT's dominant position in the market came about by being state owned, it was taxpayers money that built the infrastructure and thus the comparison between BT and Sky is not the same. Don't get me wrong, I really do think Sky need some serious competition (and have no idea btw if BT are being punished too harshly) but their origins, BT and Sky are the reason they are treated differently.

rrwfotr

Surely it should not matter if it was state owned years ago, it's like saying you were state owned therefore we let everyone else run you into the ground and distroy all your value, does not make any sence.

tradetime

rrwfotr wrote: »

Surely it should not matter if it was state owned years ago, it's like saying you were state owned therefore we let everyone let run you into the ground and distroy all your value, does not make any sence.

Yeah I know what you are saying, which is why I added the caveat that I don't know if it is going too far, but the governments always find themselves in a catch 22 situation unless they hit former state owned companies hard enough, otherwise the competition crys foul, so they have to be seen to be over compensative, as perhaps the EU will rule.