Morning Report Friday 14 August 2015
MarketMatters’ views on yesterday’s 3 Big Winners & Telstra
On an overall quiet day yesterday, it was pleasant to watch 3 stocks react very well to news/earnings, but unfortunately on the downside, the much retail owned Telstra caught our attention for the wrong reasons. The Australian market has aggressively moved away from the yield trade since earlier in the year as MarketMatters predicted. We have never received so many emails / calls from subscribers since we sold CBA earlier this year. Basically investors thought we were mad! Now in August, with the banking Index ~20% lower and Telstra (TLS) 9.4% below the 2015 highs, the yield play has hurt some investors and “hope” is a word we hear often. While we believe TLS is likely to fall another 4-5%, the majority of the fall should be from its pending 15.5c fully franked dividend. An important question going forward - is banks or Telstra for yield? MarketMatters’ snapshot view of yesterday’s 4 movers that caught our eye:
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