Australian Politics Forum - Telstra shares smashed

Captain Nemo Gold Member Offline Australian Politics Posts: 15977 Melbourne Gender:	Telstra shares smashed Aug 13^th, 2020 at 10:55am 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?
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freediver Gold Member Offline www.ozpolitic.com Posts: 53257 At my desk.	Re: Telstra shares smashed Reply #1 - Aug 13^th, 2020 at 11:02am People buy shares for future dividends, not past dividends.
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Captain Nemo Gold Member Offline Australian Politics Posts: 15977 Melbourne Gender:	Re: Telstra shares smashed Reply #2 - Aug 13^th, 2020 at 11:06am 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
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Jovial Monk Gold Member Offline Dogs not cats! Posts: 51474 Gender:	Re: Telstra shares smashed Reply #3 - Aug 13^th, 2020 at 12:40pm People buy shares for anticipated capital gain.
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Captain Nemo

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Re: Telstra shares smashed
Reply #4 - Aug 13^th, 2020 at 1:20pm

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. Grin

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Baronvonrort Gold Member Offline Australian Politics Posts: 20668 Gender:	Re: Telstra shares smashed Reply #5 - Aug 13^th, 2020 at 2:16pm 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.
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freediver

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Re: Telstra shares smashed
Reply #6 - Aug 13^th, 2020 at 7:23pm

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

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

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.

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Captain Nemo Gold Member Offline Australian Politics Posts: 15977 Melbourne Gender:	Re: Telstra shares smashed Reply #7 - Aug 14^th, 2020 at 1:24pm It was the institutional holders trading ... over 172 million shares changed hands.
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Jovial Monk Gold Member Offline Dogs not cats! Posts: 51474 Gender:	Re: Telstra shares smashed Reply #8 - Aug 14^th, 2020 at 3:45pm 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.
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Jasin Gold Member Offline Posts: 56900 Gender:	Re: Telstra shares smashed Reply #9 - 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.
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Dnarever

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Re: Telstra shares smashed
Reply #10 - Aug 14^th, 2020 at 11:49pm

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

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

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.

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Dnarever

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Re: Telstra shares smashed
Reply #11 - Aug 14^th, 2020 at 11:54pm

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.

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