Australian Investment Blog

Telstra (TLS) has become the big underperformer; an opportunity?

Telstra is adding to the woes of Australia's retail investors, closing yesterday 21.3% below its highs of 2015. Interestingly, the degree of the fall is very similar to the local banks with CBA closing yesterday 21% below its recent highs; but they have had APRA / Capital Raisings to contend with. There is no doubt that the Australian stocks, which local investors chased earlier in the year for fully franked yield, have been subject to significant pressure with TLS arguably the worst.

Within the Telco sector, TLS is down 11.2% in 2015 compared to TPG Telecom (TPM) +59%, M2 Group +16.6%, Vocus Communications (VOC) -1%, and the ASX200 -2.6% - see charts 1,2 & 3.