Much discussion today about the Telstra results and the SP dive....

Much discussion today about the Telstra results and the SP dive.

1. Interesting the figures were all in line with market expectations;

2. The concerns seem to be that revenues continue to decline as they have for years: the goal of a company is to grow its revenues over time rather than see them contract;

3. If the revenues continue to decline then the 0.28c FF dividend may have to be cut, thereby taking away pretty much the only reason to hold this stock;

4. Although Telstra may receive around $11Bil from the Fed Govt and ongoing duct rental payments with the NBN - fear remains that this "compensation" will be less than the loss of customers for Telstra.

All in all, there seems to be no surprises in today's announcement. Taking into account 2 days of about 3%+ declines on the broader market, today's 8% decline in Telstra SP needs to be looked at in that light.