I think (think!) that the majority of negative sentiment today was due to Penn focusing on cutting costs rather than any indication on growth. Even with all the cost cutting and being a leader in the industry forward guidance was once again downgraded. It’s a tough sector to try and manoeuvre such a large company and Penn is talking 4 years to turn the company around and that’s taking it that his strategy works. That said the sentiment expressed today from what I heard wasn’t all that negative, more contemplative and a willingness to watch what happens.
Banks did do well today.
I take it you have decided to hold your AVZ position and going by what we have seen recently from the likes of CAJ and AGO, just because something cops a flogging its sometimes way down the track that it all comes back to haunt you when things turn around. IMO Telstra is probably falling into this category at the moment. I don’t see any relief in sight until they can provide some market information that points to a positive rather than a negative.
