Selected Reads

Smartkarma

Equity Bottom-Up

In this episode, you'll learn:· Why you would like your counterpart to say “No” and not “Yes” when you negotiate with them· Why you need agreement from your counterparty three times to close a business deal· How to use loss aversion to your advantage in negotiations · How to use the Ackerman model in negotiations · Ask the Investors: Should I include short positions in my all-weather portfolio? BOOKS AND RESOURCES MENTIONED IN THIS EPISODEChris Voss’ book, Never Split the difference – Read…

Morningstar

Morningstar, Inc.

Shares in Telstra are still at a 13% discount to our unchanged AUD 4.40 fair value estimate, despite rallying 38% since the start of 2019 (inclusive of dividend). The market finally appears willing to price in some turnaround potential in the narrow-moat-rated group, in stark contrast to a year ago when scepticism reigned supreme. It may also be a case of the tail wagging the dog, with the rising stock price feeding investors the sense that Telstra's intrinsic value is somehow improving…

Market scepticism regarding the sustainability of Telstra's dividends remains a roadblock to its shares reaching our AUD 4.40 fair value estimate. We are not as concerned. We see the rebased dividend per share of AUD 0.16 forecast for fiscal 2019 continuing until fiscal 2022, the expected earnings low-point year marking the end of the National Broadband Network rollout and the start of its maximum margin-crunching impact.

The importance of the 239,000 increase in Telstra post-paid mobile subscribers in the December-half cannot be overemphasised. Granted, the cost of this gain was felt in the 2% fall in post-paid average revenue per user, or ARPU, and manifested in the 6% decline in fiscal 2019 first-half mobile EBITDA to AUD 1,905 million. However, these outcomes for the narrow-moat group's most important division (41% of group normalised EBITDA) were still moderately above expectations. Critically, increasing…

Australia

Telstra Corporation Limited is a full service domestic and international telecommunications provider for Australia.  The Company provides telephone exchange lines to homes and businesses, supplying local, long distance and international telephone calls and supplying mobile telecommunications services. Telstra also provides data, internet, on-line services and directory services.