telstra - laypersons viewpoint

Much discussion today about the Telstra results and the SP dive.

1. Interesting the figures were all in line with market expectations;

2. The concerns seem to be that revenues continue to decline as they have for years: the goal of a company is to grow its revenues over time rather than see them contract;

3. If the revenues continue to decline then the 0.28c FF dividend may have to be cut, thereby taking away pretty much the only reason to hold this stock;

4. Although Telstra may receive around $11Bil from the Fed Govt and ongoing duct rental payments with the NBN - fear remains that this "compensation" will be less than the loss of customers for Telstra.

All in all, there seems to be no surprises in today's announcement. Taking into account 2 days of about 3%+ declines on the broader market, today's 8% decline in Telstra SP needs to be looked at in that light.