Telkom share price

[Tomtomtom]

Telkom's share price is now about R36, about the same as a year ago.

This is only 63% of the book value per share. Can someone explain why this is? What are the risks in buying now?

 

[Ekstasis]

In my view I think it would be a bad idea to buy into Telkom at this point in time. Competition is inevitable. Imagine just a 25% loss in customers. . . .
Not so much a high risk move - just don't think the share will make much of a stride.
There's better things to invest in on the stock market.

 

[MickeyD]

Telkom's share price is now about R36, about the same as a year ago.
This is only 63% of the book value per share. Can someone explain why this is? What are the risks in buying now?

Biggest threat is government's Class A share, which is meant to expire mid-March 2011 but they are trying to extend the date...

 

[Creag]

Telkom's poor share price might have something to do with their uncertain future. Constant turnover of key senior executives doesn't help.

Telkom also had/have (?) exposure in Nigeria; their subsidiary there is causing problems. LLU looms. Without Vodacom, they're missing out on sizeable dividends. Nothing straightforward for them. Things are also muddled/meddled by the ANC's 40% shareholding in Telkom.

 

[jem]

http://www.fin24.com/Tags/Companies/telkom

That should answer the question

 

[stricken]

id wait for sub 25 and further developments on LLU and 8ta figures (adjusted for corporate massaging) to come out.

 

[klasvaakie]

Several major players are busy laying down their own fiber. Neotel, I heard also vodacom and mtn are doing the same. The moment that hits the consumer market...you will see a mass exodus from telkom's client base. Think in the area of about 10-30 % area. Furthermore, telkom is evil and you should not support them

 

[ramonthomas]

Just when you thought it couldn't go lower, it's currently (March 2013) trading at R15 per share. I'm wondering how long can this go because it has a potential upside with 8ta growing. The only thing that's pissing me off now is the name change to Telkom Mobile.

 

[bromster]

I still wouldn't touch them at that price. Government rejected KT-Corp's offer, because they think that a successful government is one that has majority shareholding in EVERYTHING. But they are incapable of running ANYTHING!

Nationalisation here we come...

 

[b166er]

Just when you thought it couldn't go lower, it's currently (March 2013) trading at R15 per share. I'm wondering how long can this go because it has a potential upside with 8ta growing. The only thing that's pissing me off now is the name change to Telkom Mobile.

Actually it was as low as R13.90 a few weeks ago. Telkom cannot manage a Jumping Castle at a children's party, their staff are lazy, useless and could not care whether their customers died or were happy. Their largest shareholder are the geniuses that run the country. The reasons why investors are not jumping at this share with P/E ratio of under 9 are too many to name. Still want to invest? Go ahead.