Morning Report Tuesday 16 June 2015
Yesterday we welcomed the news that the shareholders of AMM and VOC voted in favour of their $1.2bn merger. There was an amazing 97% turnout with people voting against TPG’s bullying tactics. My feeling as a VOC shareholder was that TPG were not vaguely considering the shareholders and the market has let them know that they don’t appreciate it. TPG are now likely to attempt a legal protest on the 23rd of June but hopefully common sense will prevail – for once please let’s put shareholders first. This news should be positive for the VOC share price leading me to consider if I want to switch into other parts of the strong Telco sector.
1. M2 Group (MTU) $10.76 – A company kicking goals, technically I am targeting ~$12, risk reward unfortunately average here.2. TPG Telecom (TPM) $8.60 – Not my favourite stock at present (see above), but technically I could but targeting $10 with stops under $7.80. Risk reward is okay3. Telstra (TLS) – TLS should remain very well supported under $6, as its now yielding 5% fully franked, compared to RBA rates at 2%. Next dividend paid in August.4. Vocus (VOC) – Will be interesting to see how the stock emerges from its Trading Halt, but I remain bullish targeting $7-$7.50.
Show more...
