Hey, some people here might be bursting a vein, but I'm buying $T+0.6%. That's an incredibly luxurious price. Profitability will return, margins will increase and cashflow will cover the (maybe slightly reduced) dividend. What do you think? Anyone buying in with me?
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And you're not afraid of Amazon and their entry into telco? :)
However, the price is great...
The price is right.
Absolutely!
If they can actually turn it around in any reasonable amount of time, hats off to them. I'll keep my fingers crossed.
"Profitability will return, margins will increase and cashflow will cover the (perhaps slightly reduced) dividend".
Can you provide any support for this thesis?
Management statement and the enormous strength of the company
So am I to understand that management says EPS will grow (how much?) and yet the analyst consensus ignores this and their estimates of -0.6%pa growth over the next 5 years are wrong?
I think the dividend will have to be cut significantly. And if not, the debt will eat them up.
The dividend is completely irrelevant here, I don't see how anyone can think it's profitable to buy a failing company because of the yield any bond will offer you. If it's a short term downturn then I can still understand but this is an example of a value trap.