growth business required - buy a bank

the below post is my opinion;

very negative article about telstra's intrinsic value in the eureka report - in summary the article saw short term share price growth but long term decline. I can see where they are coming from with the current boring stale board - just the fact these guys are talking about capital management sends out a big waring sign to me - they are supposed to be in the fast growing high innovation IT and Communications sector - and what do they want to do - give us our money back because they are too scared they will make a mistake investing it on our behalf - I have a big chunk (for me in this company) - I see the companies potential but I am at 180 degrees from this current boards approach. Mobile phones and media and it services are at saturation levels in Australia. Telstra can grow out side of Australia (say Asia - I am not against this but suggest that they might not get dealt with fairly over there give government and large enterprise is mostly the same people in these asian countries) OR telstra could get into another domestic market in Australia - that market could be banking (big4banks $25npat 2010/11 FY), insurance or finance or all 3.

In my opinion bankig is the place for telstra to start (telstra can go from a $5bn npat telco sector to a plus $25bn npat banking sector) and they could get the ball rolling by adding Ralph Norris to the board and see if he can execute telstra's banking strategy.......

I would like to see what telstra's shareprice would do if it bought a bank at current low levels (beginning of another credit loosening cycle); released a mobile wallet product ; and then gave Ralph Norris a position on the board with 5,000,000 performance options with a 5 year term and exercisable at $3.50.

Norris is on the record as identifying telstra as a future competitve threat to traditional banking......pity current telstra management can't see things from his angle. Given he has (until recently) presided over a business (Commonwealth Bank) that has steadily gone up in value over the last decade whilst telstra management has presided over a business in constant decline over the last decade I know who I believe.

Remember NPAT for big 4 banks 2010/11 was around $25bn whilst the NPAT for the entire telco sector in 2010/11 was around $5bn.

I hold telstra shares and hope that they go up.

disclaimer; the above post is my opinion and is not to be used for making any decisions. The above post has been submitted for entertainment purposes only.