now is different, page-5

Well Folks,

Time to remind you of what I posted on the 4th of April 2006 regarding T3.

Looks like I was spot on except for the ACCC being leaned upon.

(Sir) Lunchalot
====================================

Folks,

Too much heat and too little light is being generated by emotional reactions to Telstra - the giant we love to hate even as we rake in the dividends.

Here is what I believe will occur based on the reading of more T3 commentary in the past year than that offered over two millennia by Biblical scholars:

(1) Govt will proceed with Telstra T3 sale this year.

(2) Supply will seek to match demand by a part being placed in the Future Fund.

(3) Sale will proceed via deposit receipt as in T1 - part payable up front and part payable after a year.

(4) Existing shareholders will be given precedence in take up (mechanism unknown).

(5) Sale price will be reasonable - around $4.00 with approx $3.00 up front and approx $1.00 after a year.

(6) Dividends will be payable to deposit holders from day 1

That's why I figure that the institutions are still piling in and buying at these levels, though there well may be a drop to $3.50 in the short term.

They'll only buy more and at lower prices as poor mums and dads are fleeing in confusion.

The Fed Govt knows that it cannot have its cake and eat it too.

They will lean on the ACCC to come up with an acceptable compromise.

They can't do that overtly for obvious reasons but as in all of Life, timing is everything.

(Sir) Lunchalot
- Knight of the Well Loaded Table

Caveat: Remember that the above is Lunchalot's OPINION ONLY. Lunchalot owns tens of thousands of Telstra shares and HE IS NOT SELLING. Not today, not next month, not next year. Don't trade on opinions, that's what research is for. Lunchalot is no expert, nor is he a financial adviser. And he's rather poor to boot.