will $4.50 hold ( today ) ?
and its still falling and where is the bottom
somewhere under $4.00 obviously ( NOW )
will $3.50 hold ( i don't think so )
am in ( with a top-up order ) sub $3.50
i think an updated div. guidance ann is on the way ( in a few days )
i have the order IN the market ( put in before the open )
i haven't had it filled yet ( but i bet those wonderful short-sellers will try to help )
secondly the TLS results included estimated divs INCLUDING special divs '
i am guessing those special divs would be generated with NBN income rather than the new Foxtel deal .
if my guesses are wrong ( or correct ) , i suspect TLS will have to clarify the situation
other-wise short-sellers and media commentators will get a real pay-day on this
By AAP | 30.08.2017 12:41 PM
The Australian share market's early gains have been wiped out as Telstra plunges to a five-year low and Ramsay Health Care and Boral fall after posting financial results.
The benchmark S&P/ASX200 index was down 4.1 points at 5,664.9 points at 1200 AEST, after being 14 points higher in early trade.
The positive start to the session followed gains on Wall Street overnight, as some calm returned to trading following the firing of a missile by North Korea over Japan.
But that momentum was lost after the first hour of trade on the local market, as Telstra's fall and weakness among financial stocks dragged on the main indices.
Telstra is trading ex-dividend, meaning new buyers of the stock will not receive the telco's latest dividend, which is the last before it reduces its shareholder payouts.
The company on Wednesday also announced that the company rolling out the national broadband network will not support Telstra's plan to monetise the income the telco gets from NBN compensation and access payments.
Telstra shares were down 23 cents, or six per cent, at $3.61, their lowest value since June 2012.
Commonwealth Bank continues to lose ground, down 0.7 per cent at $75.20, while Westpac and ANZ were also modestly weaker and National Australia Bank was slightly higher.
Ramsay Health Care shares were down 3.2 per cent at $69.57 after it reported full-year net profit growth of nine per cent but missed expectations with forecast earnings per share growth of between eight and 10 per cent in the current financial year.
Building materials maker Boral met expectations with its earnings growth for the 2016/17 financial year, and forecast of further growth in 2017/18.
Its shares were down 1.7 per cent at $6.715.
Rival James Hardie Industries was down one per cent at $17.43.
The mining sector was mixed, with BHP Billiton up 0.7 per cent at $27.05, Rio Tinto down 0.1 per cent at $66.53 and Fortescue Metals 1.8 per cent weaker at $5.875.
The Australian dollar has been boosted by better-than-expected housing and construction data, to be trading at 79.80 US cents at 1200 AEST.
A 1.7 per cent fall in building approvals in July was a smaller decline than economists had forecast, while a 9.3 per cent increase in construction work done in the June quarter exceeded market expectations.
courtesy of The Bull
The outcomes of the capital allocation review are:
1) a potential monetisation of a portion of locked-in recurring nbn receipts, subject to legal documentation and satisfaction of certain conditions;
2) a revised capital management framework focused on maintaining tight fiscal discipline, maximising returns for shareholders, maintaining financial strength and retaining financial flexibility for investment in the future; and
3) a new dividend policy to more closely align ordinary dividends to underlying earnings1 and to return in the order of 75 percent of net one-off nbn receipts2 to shareholders over time via fully-franked special dividends.3
Potential monetisation of recurring nbn receipts
At its Investor Day in November 2016 Telstra said it would look at ways to crystallise value from recurring
nbn receipts for key infrastructure and today announced a potential plan to monetise a proportion of these
Mr Penn said recurring receipts for access to Telstra’s extensive infrastructure were expected to grow to
just under $1 billion annually by the end of the nbn migration period.
“If we were to proceed with these plans, it would involve approximately 40 percent of the total receipts that
are expected, representing the already locked in receipts for fibre and exchanges,” Mr Penn said.
“The scale of the proposed transaction is approximately $5 − 5.5 billion4 with Telstra to retain some equity interest.
Our intention would be to use the proceeds to reduce debt by around $1 billion, with the balance to support a capital management program to enhance shareholder returns, most likely through a series of on and off market buy-backs.
“The proposed transaction is subject to agreement and a number of steps including approvals and consents from investors, the Government and nbn co.
“We are currently in discussions regarding these matters. We cannot confirm whether they will be achieved
but we will update the market in due course,” Mr Penn said
The new dividend policy supports the objectives of the capital management framework and is consistent with
shareholder feedback to maintain a strong balance sheet and flexibility to manage the business and invest,
especially during the nbn transition.
Mr Penn said the new dividend policy, which will commence after the payment of the final dividend for the
2017 financial year, would move Telstra away from a historical practice of paying out almost 100 percent of
“From FY18 we will adopt an ordinary dividend payout ratio of 70-90 percent of underlying earnings1, which is
more in line with global peers and local large companies,” he said.
“In addition to the ordinary dividend, we intend to return in the order of 75 percent of net one-off nbn receipts2
to shareholders over time via fully-franked special dividends.
“We believe this is appropriate given one-off income is akin to compensation for an asset sale over a number
of years and aligns with market feedback and expectations that these receipts are returned to shareholders.
“With the implementation of this new dividend policy, we expect total dividends in respect of FY18 to be 22
cents per share fully-franked, including both ordinary and special dividends.”3
Mr Penn said in adjusting the capital management framework and resetting the dividend policy Telstra had
balanced the importance of providing consistent returns to shareholders with the long term sustainability of
returns and strategic direction of the company.
“We realise this is a material reduction from the historic level of our dividend and we do not underestimate the
impact on our shareholders. It is for this reason we are providing advance notice of this change and why the
Board has maintained a 31 cents dividend this year,” Mr Penn said.
“These are important changes to Telstra’s approach to capital management and appropriate in the context of
our strategic transformation. This is about setting the business up for success in the future.”
courtesy of Bell Direct
so i guess 22 cents a year , is not so likely now ( and my guess of 20 cents a year might be overly optimistic )
By AAP | 30.08.2017 01:49 PM
Telstra's plan to pay down debt and create new shareholder returns by monetising the receipts from the national broadband network has been shunned by the rollout company nbnco which says it will not support the scheme.
The giant telco announced at its full-year results on August 17 that it wanted to create an investable product based on the future income stream it gets from NBN compensation and access payments.
Chief executive Andrew Penn at the time said that if an arrangement were to go ahead, it would be worth $5 billion to $5.5 billion, with $1 billion of the proceeds used to pay down debt, and the balance - around 75 per cent of NBN income - used for shareholder returns.
But, nbnco has refused to provide the consents needed.
"While the proposal is well progressed and supported by equity and debt investors, Telstra has been advised this morning that technical consents from nbnco will not be forthcoming," Telstra said in a statement on Wednesday.
Telstra quoted the company rolling out the broadband network as saying it could not see how its position could be protected or improved by Telstra's securitisation plan.
"Especially given the unpredictability of our operating environment in the 2020s," nbn said.
Citi analysts said the rejection means that the proposed share buybacks that Telstra has intended to fund with this transaction are unlikely to proceed.
The announcement came as Telstra shares went ex-dividend, signalling the last shareholder payment before a move to a lower dividend scheme.
Telstra said in its full-year results it would cut future dividends in a move to build up a war chest to protect its massive market amid growing competition.
The new policy to pay between 70 and 90 per cent of underlying profit will take 2017/18 dividends to 22 cents, from 31 cents this year.
Citi said the special dividends, which come from the one-off NBN payments, however, will not be affected.
"We expect that ordinary dividends will likely decline to a low point of 13 cents in full-year 2019 with scope to grow from that point," Citi said.
"We expect that Telstra will use the special dividends to smooth out the decline in the total payments to a sustainable level."
The telco's shares were down 23 cents, or 5.99 per cent, to $3.61 at 1340 AEST on Wednesday.
courtesy of The Bull
i would rather here it from TLS management ( not from Citi analysts )