Morgan Stanley cuts S.Africa's Telkom to "underweight"

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http://za.today.reuters.com/news/Ne...ZABS-TELECOMS-TELKOMSA-RESEARCH1-20060419.XML

Morgan Stanley cuts S.Africa's Telkom to "underweight"
Wed Apr 19, 2006 8:07 AM GMT
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(Reuters) - Morgan Stanley on Wednesday said it
downgraded South African telecom company Telkom to
"underweight" from "equal-weight" and lowered its price target
to 125 rand from 145 rand, on tougher regulatory environment
and increasing competition.
The brokerage raised its price target on Africa's largest
mobile phone operator MTN Group to 60.50 rand from
56.00 rand, due to better-than-expected 2005 results. Morgan
Stanley kept its "equal-weight" rating on the stock.
Click to expand...
 
The Telkom share price is reflecting this. They are currently trading at R141,49 - down from the high of R165 of last week.
 
This is not bad. It is just downwardly adjusting Telkom's status to where it was supposed to be. It is going to have to shrink much more before it is anywhere near where it should be. Telkom was artificially inflated because of a lack of competition. Now all of a sudden Telkom is spending on intrenching its position (with zero competition in sight) and the money monguers around the globe don't see it as that attractive anymore. I feel nothing for them. Country first, then business. Business controlled through competition is the ideal! When will our government realise this?
 
antowan said:
When will our government realise this?
Click to expand...

When its too late, if ever.

If our government can ignore an issue as huge as AIDS they can ignore telecoms just as easily.
 
Yay! Screw Telkom!...their shares should be worth R30 once SNO kicks in. Provided SNO competes with Telkom.
 
I didnt pull any strings on this, but I know someone who might have

Gooku:" Pyrit (a Myadsl forum m8),Did you pull some strings on this one ? "

Pyrit: " Yeh, told my grand-children Telkom is ripping me off ,it must crash and burn :D "



ONLY the humour is intended.
 
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