For telstra to go to $1.00, profit would have to fall from $2b...

For telstra to go to $1.00, profit would have to fall from $2b to $500k. Reach already written off, so next profit would be $1.1b + $950m + growth@ say even 4%.

Thus 2004 say $2b + 4% = $2.08b
2005 say 2.08 + 4% = $2.17b
etc,etc,

This does not include any investment outside of Aus and in uncertain times 6% yield is better than most.


This is only my opinion with limited experience and using simple calculations based on simple assumptions.
In a market were picking the bottoms and tops of stocks is impossible at the best of times some certainty is comforting.