Penn started just as the general market took a slide in early 2015.
But when the market recovered, TLS did not.
I remember clearly, TLS started to underperform and enter into a nasty bear market after the August 2016 full year results. The results were fine at $5.8 billion net profit, 31c dividend and 1.5 billion off market buy back. The last time TLS was flush with cash.
What the market didn't like was that Penn also announced a $3 billion spend on network upgrades during this time. The market thought that was a lot of money to spend on upgrades and whether it was really necessary. Probably saw the telco industry as a high CAPEX business with continuing needs to upgrade.
Now the chart is hoping that spend announcement of 4 years ago is going to be worth it and bring fruit as it has a go at some recovery. But still unable to get back over $4.00.
Removal of Penn will be a good start as the downward spiral coincides very well with him as CEO.
TLS Price at posting:
$3.73 Sentiment: Buy Disclosure: Held
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