marmaduke notes:"So, even with a worst case scenario 23c dividend MTS pays 5.75% at a share price of $4. On top of that, you get franking credits". MM. 23c div for FY12 is probable and it could be a 'worst case scenario'. But what is yr estimate for FY13? Or are you only buying/holding for this yrs divs? I wouldn't be surprised if MTS earnings remain static for next few years esp as its arch-rivals stage a monster price war. Ask yrself: Is $4 good value buying for a stk with flat earnings/zero or near zero growth?
marmaduke: "In my view, even in the worse case scenario, even at $4, MTS still pays you term deposit rate + franking credits". MM. Is getting term deposit+f.credits enough to warrant the risk of investing yr savings? IMO one needs to expect more given the uncertainty in world today.
MTS Price at posting:
$3.92 Sentiment: None Disclosure: Not Held
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