Penn basically said that they need to make up $3,000.000 ,000 and has no idea where that is going to come from.
Cost savings are not hard to come by when the business you used to own ( copper ) is dying and staff once needed to maintain this now dying business are no longer required
Anyone remember Kodak. They had a similar problem
I used to own a business which I sold. Cost saving 100%.
Telstra is in the same situation with copper.
No business. No costs Easy
The issue is now replacing copper wire income and Penn has basically said he has no f .... ing idea.
It is not as though Telstra management have not had plenty of advance notice.
This is now a startup with cash
Remember what happened to James Packer ( Onetel )when Kerry gave him a bucket of money and told him to make his own fortune ?
There are plenty of IPO's out there with leadership a lot more dynamic that TLS present lineup
I bought telstra in 2010 and have collected dividends plus a 17% capital gain plus imputation credits and better than doubled my money.
Not unhappy. Better than your average managed fund but I'm now selling down
Unless someone can convince me that Telstra management have a vision for the future there are better opportunities elsewhere and that is the crux of the problem. There is no clearly defined business plan for this business going forward
TLS Price at posting:
$3.49 Sentiment: Sell Disclosure: Held
(20min delay)