telstra $4.02 today, page-131

the shorts have been winning The market has agreed with Citigroup about TLS being overvalued above $4. The biggest holders of 'shorts' against TLS are the hedge funds in New York. They have been running 'permanent' shorts for some time!



Subject telstra overcooked at $4.10, says citigroup
Posted 02/02/06 15:19 - 734 reads
Posted by Techno8
IP 138.217.xxx.xxx
Post #890746 - in reply to msg. #888290 - splitview

Telstra Overcooked At $4.10, Says Citigroup
February 02 2006 - Australasian Investment Review

It’s days like these that really have to hurt Telstra (TLS) shareholders. The $5.50 plus share price now seems but a distant memory and as if to put the boot in, the analysts at Citigroup have downgraded their recommendation to Sell, Low Risk as they see the stock as "overcooked" at the current share price of $4.10.

On the analysts’ calculations, the current share price implies an FY07 PE of 16.5x, which they say totally underestimates their "more pain before gain" thesis.

Citigroup is of the opinion that there is a real risk of price war in mobile, broadband and telephony and the company fights back against a lower ULL price and as a result they say this doesn’t bode well for margins over the next two years.

The only saving grace for the telco is a change in industry structure or a collective move to oligopoly pricing, however, the broker places a low probability on either scenario.

Citigroup has a target of $3.75 on the stock.

Of the nine other brokers and equity advisers covering the stock, two have positive recommendations, four are Neutral and three say Sell. (Database courtesy FN
Arena).



Subject re: citigroup caught with their pants down ?
Posted 02/02/06 15:53 - 738 reads
Posted by h0rc0
IP 203.59.xxx.xxx
Post #890878 - in reply to msg. #890746 - splitview

Hehehe, that's a good one from Citigroup. Looking at yesterday morning's action it wasn't the mums and dads that panicked. CAM should just come out and admit that they've been shorting telstra silly (along with most other funds out there ) and now they'd like mums and dads to sell it back to them at $3.75. lol


Subject re: citigroup caught with their pants down ?
Posted 02/02/06 15:59 - 747 reads
Posted by share-ee
IP 203.59.xxx.xxx
Post #890904 - in reply to msg. #890878 - splitview

eggs/actly silly citigroup! - and others - you know who you are!!