Telcos are the fundamental infrastructure of our entire economy & society the market value hundreds of companies that store, gather, exchange information as exciting priceless futuristic marvel’s, meanwhile the “3” businesses that underpin them & to which we are all dependent upon, as boring low value dinosaurs The 3 businesses left are the winners from years of rationalisation & are now in a position to demand a reasonable return on investment Regulations can’t hobble profits to the point of making national security essential capital investment unviable & the NBN has assured that governments aren’t going to venture there again That is an essential service with pricing power & thats a moated oligopoly Also Telstra is the biggest best resourced & superior provider that pays a high yield in a zero yield world The risk is tpg taking market share so you can buy that as well & still average out a decent return with little risk of downside in most macro eventualities & that’s far more valuable than $2.77 would imply
TLS Price at posting:
$2.77 Sentiment: Buy Disclosure: Held
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