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I am no health expert but as far as I know all those who have unfortunately died due to the COVID19 outbreak have had underlying health issues.
I see the fall in the stock markets nothing but an over reaction and the big boys flushing out the smaller investors so they can jump back in at rock bottom and make vast amounts of dosh.
"as far as I know all those who have unfortunately died due to the COVID19 outbreak have had underlying health issues"
Not strictly true, some of the Chinese Doctors who originally treated the virus died due to high viral loads. It can kill younger people too.
https://nypost.com/2020/02/21/coronavirus-tragedy-chinese-doctor-who-postponed-wedding-to-treat-patients-dies-of-infection/
the very fact there's so much talk both on here and everywhere else about COVID right now tells you short term general optimism is low and values are going to be surpressed.
Market is (I think) telling us the covid virus is going to get worse & / or the cure a probable ban on travel and world economy stop is even worse.
does anyone on this forum use Marketscreener?
https://www.marketscreener.com/BT-GROUP-PLC-4003616/financials/
I draw attention to two numbers:
2021: Price to book at 1.35
2021: ROE: 20%
When ROE is approaching twice Price/Book expressed as a % less one (ie 1.35 is 13.5%) then historically its been very good value and sees out performance. (I admit in BT's case that ROE is inflated by high debt)
In the case of BT due to its level of debt ROE is meaningless. In its last accounts BT 's borrowing was nearly 180% to equity it is probably now 200% !!!! Having said that in reality its return could be said to be a respectable 7%. (That would be its return on equity plus debt)
The market perception is that telecoms are a bad investment and the Government agencies do their best to ensure that consumer pricing is held down. Telecoms are a utility and long term income play, but the scale players will be eventual winners. I don't like third party providers, i can see their long term future income being squeezed by competition from the big Telecom Infrastructure owners . BT, Virgin, Vodafone are the three main infrastructure owners and Sky will also do ok because of its media clout. I don't like companies like Talk Talk and Zen internet, not because they aren't well run, but because they rely on other providers to sustain their business model, i just see them as too risky.
"In the case of BT due to its level of debt ROE is meaningless. In its last accounts BT 's borrowing was nearly 180% to equity"
You keep mentioning Equity, but the stock market value is just a number that the market applies to the stock. Just because the stock price is £1.49, that doesn't reflect the true value of the assets. The market value might have a bearing if BT were struggling to pay their debts, but they aren't. BT isn't a distressed company either, so even if a company moved in with a hostile bid, the market valuation would jump considerably to much higher levels.
The debt market will lend BT money as long as BT have the ability to pay it back, the current market valuation is a variable and has no bearing on the true value of the assets.
" the current market valuation is a variable and has no bearing on the true value of the assets."
yes, but taking any market sentiment aside from the share price.....the more experienced investors will buy and sell based on what they perceive the return on assets and the likely return (dividend) available to them, and of course the value that having those debts has, ... given the interest yield payment being made for having them.
If any asset provides a lower and lower return (revenue/profit) then the value of that asset declines ...no one buys a goose at top dollar if she can no longer lay golden eggs ...and...given that shareholder dividends come down the pecking order after debt interest payments, pension contributions, asset value writedowns, other exceptionals etc etc...depending on circumstances .....then... the shareholder begins to quetion the actual real value of an asset and the share price "may" begin to reflect that thinking..
Look at INTU and Hammerson....the share prices now reflect the fallen value in their shopping centres
whether that share price is "correct" normally sorts itself out of course, on results days
Chart suggest only 5% upside once 158p is broken...better fishing elsewhere now imo.
https://telecoms.com/502677/chinese-response-to-coronavirus-reveals-the-true-nature-of-online-censorship/
if one has a flu like illness. please wear a mask. it will help reduce the chances of one passing the infection to the next person. if all practice this wearing of mask when having flu like illness, the
covid-19 or flu will not spread so widely.
learn to not touch your face especially nose, eye and mouth. if one must then use the back of your hand, it is probably cleaner then your palm side as one will touch and handle all other things with that side of your palm.
if one has no mask and need to sneeze/cough at least cover nose/mouth with a tissue paper before the action. throw away the tissue paper after use.
if no nothing to block the sneeze/cough, at least use the inner side of arm between upper arm and forearm to reduce your body liquid from spreading into the air.
some common sense practice.
not a medical advice, please check with your dr. if you need one.
Fleccy,
The reason I mentioned equity was just responding to Cpt Hornblower's point that (Return on Equity) ROE was 20%.
In regards to your point "The debt market will lend BT money" I believe that is debatable. You are aware that BT's debt rating is BBB. Check out the definition of junk bonds . You will see that BT credit rating is just one notch above junk as any rating below BBB is considered a junk bond.
Whats the probability of openreach ipo?. Ofcom is currently monitoring the implementation of the new governance model ie that openreach is a distinct company with its own staff, management, purpose and strategy
1.48 FFS. Owning BT shares is like watching your football team getting defeated every game for the past 5 years. There's only so much bad news one can take, so tomorrow I'm out before BT becomes pound a share .
BoBetts
BT's credit rating is not fine!!! Lets take it from the horses mouth
This is from BT's own website https://www.btplc.com/Sharesandperformance/Financialreportingandnews/Debtinvestors/index.htm
Term Moody's Standard & Poor's Fitch
Long Term Baa2 BBB BBB
This is from wikepedia.
Bonds with a rating of BBB- (on the Standard & Poor's and Fitch scale) or Baa3 (on Moody's) or better are considered "investment-grade." Bonds with lower ratings are considered "speculative" and often referred to as "high-yield" or "junk" bonds.
"BT's credit rating is not fine!!! Lets take it from the horses mouth"
Avro You're just a BT hater, possibly pathologically. It's been apparent through many of your posts. I recently posted about BT/EE going their own way on mast sharing, because the other providers didn't like the rental cost and you commented.
"Like the BBC its time it was broken up. The line rental rip off continues when fibre is installed as I know to my cost and they basically dictate what happens in telecoms in this country. Just like they used to do as The Post Office 60 years ago. As J Coles says below, time the masts were made a separate company and ALL mobile companies have access for a standard minimum fee"
Typical hater statement saying BT should be broken up and that the masts should be split off into a separate company, blah, blah blah. I reckon you must work for Talk Talk, or some other flaky company.
Fleccy,
If you will check. That was not my comment is was a comment that I cut and pasted from the Telegraph site.
Why don't you stop shooting the messenger and just look at the facts. BT has been one of the worst FTSE performers and consistently gone down over the last 5 years. All I have done was point it out. Why does that make me a BT hater? It is even worse then Royal Mail and Centrica and that is saying something.
"Why don't you stop shooting the messenger"
Because you agreed with his comment, you could just as easily posted the comment that the other providers should pay their fair share of the costs. Just because EE's owned by BT doesn't mean the others can get in there on the cheap, good on EE.