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Australian Investment Blog

ASX:TLS 21/05/2018

Telstra down over 50% since Andy Penn

Andy Penn's appointment was on the 1st of May in 2015 and Telstra is down 54% since then. What's next?


Telstra (ASX:TLS) $6.24 at 1-5-15, today's open $2.85 on 21-5-18 down -54%, last week down -10.9%


Trading update on Monday 14/05/18 showed a challenging environment for their mobile and fixed services margins currently and in years to come.
The challenging trading conditions in FY18 are expected to continue in FY19, including ongoing pressure on mobile and fixed ARPUs and the accelerating impact of the NBN. Sourced from Telstra's announcement on:

Market Matters Take:

Telstra shares (TLS) have plummeted well over 50% since Andy Penn’s appointment. Wiping a huge $46bn from the companies valuation hurting virtually every Australian through their Super. Interestingly the AMP scandal that so publicly cost chairman Catherine Brenner her job cost investors less than $3 billion. Anyway enough whingeing, time to look forward and attempt to make some money from this telco giant which hopefully is not travelling along the same path as the dodo! TLS is undoubtedly in a bear market which we often refer to as resembling a ping pong ball going down a staircase, it will reach the bottom but not without some large bounces along the way.
  • Since its major high in early 2015 TLS has bounced 17.7%, 12.6%, 13% and 13.2%.
Until further notice at MM we regard TLS as a trading / active investing stock that’s paying a large fully franked dividend. We believe TLS is a buy for the brave below $2.80 looking for a free-dividend / ~15% bounce. Telstra ((TLS) Chart To gain insights when Market Matters buys/sells sign up for a free trial today. You will receive live SMS and email alerts when Market Matters actions a stock. Also receive the interactive daily note sent out every morning and afternoon covering the ASX.

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