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Are MM thinking of selling Telstra (TLS)?

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    Are MM thinking of selling Telstra (TLS)?

    Hey James and Team Love your ongoing commentary and I have just renewed my subscription for 2 years The Market clearly did not like the update and their strategy and the price is in a downtrend falling below all the major moving averages and breaking below a support level I have read your take and I understand that MM is comfortable to hold - for income purposes The management of TLS continually disappoints and with so many other opportunities in the market (with similar dividend yield and better growth prospects ) I am inclined to sell I would appreciate your view I understand this will be General Advice only Thanks David

    Answer

    Thanks David for your ongoing support.

    Multiple questions RE TLS today, not surprising when such a well owned stock falls to fresh 2-year lows. We have no immediate plans to sell, mainly because we think the sell-off this week has extended too far, however we’re not wedded to our position. You are right in highlighting so many alternative income investments, and we often feel ‘lazy’ holding Telstra, however, we do genuinely see value in their asset base, it’s just a big ship to turn around and manage, hence the positive view around spinning out some parts of it, which now seems to be on ice.

    As we said in reports on Wednesday & Thursday this week  (22nd & 23rd of May) at this stage we believe the stock is a little overdone on the downside, and while we have no immediate plans to sell , our change in stance to neutral/bullish TLS for income only is clearly a reflection of our reduced confidence in their ability to grow.

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    Telstra Group (TLS)
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