A drop in profit, yes.
Still making Billions of profit each year.

The same dividend paid out 6 months ago. (8 cents fully franked)

So ... with a dividend return of roughly 5% ... why would anyone dump shares in it now ... considering that cash return is abysmal for the foreseeable future?  :D

People buy shares for future dividends, not past dividends.

freediver wrote on Aug 13^th, 2020 at 11:02am:

People buy shares for future dividends, not past dividends.

Indeed, then why dump the shares today when there is a fully franked dividend coming up on 24th September?

They reached a low today of $3.15 but the consensus valuation is in the region of $3.75

People buy shares for anticipated capital gain.

Jovial Monk wrote on Aug 13^th, 2020 at 12:40pm:

People buy shares for anticipated capital gain.

True, but Telstra has never been a capital gain stock after the initial excitement, it is a revenue stock which in times like these can be very handy.

A lot of people have been riding the buy-now pay-later techs of course, which have been a ripper of a gain ... even as those companies are yet to make a profit.  ;D

I don't know why people buy Telstra shares.

It's part government part privatised the government will always get in the way of doing business.

Captain Nemo wrote on Aug 13^th, 2020 at 11:06am:

freediver wrote on Aug 13th, 2020 at 11:02am: People buy shares for future dividends, not past dividends. Indeed, then why dump the shares today when there is a fully franked dividend coming up on 24th September? They reached a low today of $3.15 but the consensus valuation is in the region of $3.75

If you think it is a bargain, buy it. Don't complain.

The share price does not reflect what the bulk of shareholders or the non-shareholders think it is actually worth. It is merely the agreed price of those people who are actively buying or selling right now, which can be a very tiny proportion of people who have shares they want to sell or who want to buy shares. If the price is $3.15 per share, that could be the result of as little as $3.15 changing hands between 2 people who have no idea what they are doing.

I have shares in Telstra, and have no plans to sell.

It was the institutional holders trading ... over 172 million shares changed hands.  :o

What do they know that we don’t?

I would love to put some money into shares, “high interest accounts” is a sad joke but may need to the money soon to build a house in Tassie so the sharemarket not the best place.

I made $10,000 in two weeks at Crown Casino. All small bets.
Then I took it and left. That's what makes the difference between the winner and loser. The Loser keeps his in the Market Gamble - the Winner knows when to walk away with it.

Captain Nemo wrote on Aug 13^th, 2020 at 11:06am:

freediver wrote on Aug 13th, 2020 at 11:02am: People buy shares for future dividends, not past dividends. Indeed, then why dump the shares today when there is a fully franked dividend coming up on 24th September? They reached a low today of $3.15 but the consensus valuation is in the region of $3.75

Last batch I sold I got about $850. The rest I hold were basically paid for by this sale alone - they owe me nothing so I will continue to hold.

Jasin wrote on Aug 14^th, 2020 at 11:34pm:

I made $10,000 in two weeks at Crown Casino. All small bets. Then I took it and left. That's what makes the difference between the winner and loser. The Loser keeps his in the Market Gamble - the Winner knows when to walk away with it.

Back in the days when a pokie payed out coins I gave my lady the shites by putting a few dollars in a machine maybe $1 - $2 or $3. What ever dropped would go into my pocket.

It was amazing how often I would get a decent drop, maybe $10 or $20 and just walk away, even if I got my $2 back I would walk.