Telkom share break-out rings market alarms

[rpm]

http://mybroadband.co.za/news/Telecoms/1713.html

 

[BTTB]

Buy on the rumour sell on the fact.
Insider Trading...
You name it .. there is nothing new in this sort of behaviour.

Actually if you had bought Telkom (TKG) Share at the peak of the Break Out/Rally on the 3rd of September 2007, you would be more than -5% out of pocket now.

In my opinion Telkom is between a rock and a hard place.
It's interest in Vodacom are substantial and growing, but its Fixed Line Business although substantial is stagnant or in actual fact in decline.
If Telkom did not have the 50% stake in Vodacom their shares wouldn't be anywhere near where that are today. (Telkom closed at R180.80 yesterday)

In order for Telkom to grow and create shareholder value it will have to think up something else than it's current status quo. Whether these rumours are based on fact it is hard to say, but I think the major shareholders in Telkom are eyeing the lucrative stake in Vodacom for a potential sell-off or exchange for a controlling stake in MTN.
A deal like this could take years to implement and they would need to consult with the Competitions Board in order not to overstep the mark.

Would you buy Telkom Shares at these levels?

 

[Slinky511nx7]

benign...benign and a half

 

[DragonLogos]

you can make a fortune with profit taking , what they will be looking at is trading over a period of time, but with such huge amounts, people might wonder if this could buy silence, or a lotto ticket, the boarding pass to the gravy train

 

[lordnokon]

I think there something fishing going on. Why suddenly now???

 

[HavocXphere]

Buying Telkom after the CFO, CEO & Parking guard jumped ship is just crazy. I think for anyone excepts traders its just a bit too risky atm.

 

[XCentricdave]

I think for anyone excepts traders its just a bit too risky atm.

And, traders are well known for not being able to distinguish their gluteus maximus from their elbow.