Blake Henricks (Buy): Telstra's a buy. And the reason it's a buy is 10 years ago, we were wondering how they were going to get rid of their declining fixed revenues. That's actually happened now. The NBN bought their network; 80% of the valuation today is mobile in the infrastructure business. If you take the mobile business, there has been a massive price war. It's been very, very damaging. In fact, we think Optus is close to breakeven once you strip out the NBN one-off receipts. So you've got a competitor on their knees. As JB said, prices are starting to lift. There's a long way to go in the mobile repair on the earnings. The second thing is the infrastructure. They carved out the infrastructure business to show the quality of this business. There's optionality around potential NBN privatisation. That 4.5% dividend yield is probably going to grow over the medium term. It's solid. No one wants the banks. Telstra is a buy.
maybe... Just maybe Ricky Booby......
TLS Price at posting:
$3.35 Sentiment: None Disclosure: Not Held
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