ACCORDING TO OZ EQUITIES, in their "Hot and Spicy" afternoon...

ACCORDING TO OZ EQUITIES, in their "Hot and Spicy" afternoon newsletter, TLS was fired up today for 2 reasons:
1)
rumours of a special dividend (countering commentary in the Australian from Monday); and
2)
re-focused efforts on cost cutting (speculated upon in the media last week, and in Communications Day).

OZ EQUITIES report on TLS is as follows:

"Market fired up on rumors of a special dividend in Telstra ..

Telstra has shot up on strong rumours that the stock will pay a special dividend - or an enhanced dividend.

As a senior dealer commented, the stock is already at a yield of about 5% at this price, given that it just maintains the 11c div paid each of the last two halves.

Meanwhile, an internal memo sent by Ted Pretty to other Telstra executives and confirmed by the company has turned Telstra back into the positive as the market focusses on cost cuts of up to $500 million this fiscal year vs $100 million forecast earlier, with job cuts a key ingredient. TLS up 16c to $4.64".