TLS needs no introduction and we already hold the stock in our Active Income Portfolio for its’s estimated 2.6% fully franked yield. We believe TLS is in a major turnaround phase with undervalued assets and a sustainable dividend making it an ideal holding in our Income Portfolio, also for good measure its under owned by fund managers including ourselves. The question today is does TLS warrant a position in our Flagship Growth Portfolio.
I do find it hard to plough aggressively into a company that still fails to comprehend that client retention and service are the cornerstone to any successful business although conversely there’s clearly huge room for improvement in this domestic telco goliath. At this stage we feel that TLS warrants a position in our wait and see basket but no more, the share price certainly isn’t creating any urgency as it continues to drift around the $3 region.
MM likes TLS but sees no urgency yet.
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