article 3 months old

Your Editor On Switzer: Telstra De-Rating Has Begun

FNArena Talks | Sep 13 2016

Yield investors should be more cautious from here onwards, warns FNArena Editor Rudi Filapek-Vandyck. Nowhere is the threat for ongoing capital losses as obvious as in Telstra ((TLS)) shares, he told Peter Switzer last Thursday.

On the Editor's observation, analysts are trying to assess what Telstra will look like beyond annual NBN-related payments from the Australian government, and they don't like what the future holds for the big Australian telco. Arguably, the de-rating of Telstra shares already started in 2015 when the stock was changing hands in the high $6s. At present Telstra shares are trading closer to $5. It appears a price with a '4' in front of it is but a matter of time.

To view the broadcast, click HERE

Past broadcasts can be viewed via the Investor Education section on the FNArena website:

Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)" – Warning this story contains unashamedly positive feedback on the service provided.

Share on FacebookTweet about this on TwitterShare on LinkedIn

Click to view our Glossary of Financial Terms