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TLS was down on Friday because Credit Suisse downgraded it to SELL from Neutral due to the sharp share price outperformance in the short term.

In my view, that is not done on the back of valuations, but purely to justify a reason for their boys to sell clients out of TLS to chase high Beta stocks (growth stocks).

Come on. Since the start of this rally, has Telstra really outperformed the market? Give me a break. That sounded like a lame excuse from CS to give their boys a reason to sell. Anyway, I will not pay too much attention to CS's report. Which other top 20 company can claim to pay approx. 8.0% fully franked dividends out of freecashflow? The banks are continuing to dilute their shareholders by issuing more equity, so dividends from the major banks are not going to match TLS's dividends.

I see TLS as a free cashflow and dividend paying behemoth. The scariest bit in TLS's saga is Conroy. However, I believe our new CEO is doing well in mending strained relations.

Happy investing.