In my opinion (and in my opinion only) the sell-off is being caused by concerns over when the Future Fund will sell out its 10% stake in TLS and by concerns over the future viability of the dividend TLS pays (especially in light of the changes to the dividend laws made before the election).
TLS is an absolute failure as a capital growth stock. Most mums and dads (such as myself - I've held it since T1) count on it as being a safe dividend yield play in their portfolios.
But if TLS can't maintain the dividend at 14c fully franked per share, what's the point of holding TLS?
It's also a classic case of the market sentiment meeting the intrinsic value of the company. TLS was probably Australia's best example of a dot-com bubble stock when it appreciated to $8-$9 per share. The one difference between many dot-com bubble stocks formerly listed on NASDAQ and TLS is that it's still in business but we'll never ever see the heady days of $8-$9 per share again, I fear.
TLS Price at posting:
$2.69 Sentiment: Sell Disclosure: Held
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