A week ago I wrote a post saying that I was now considering Telecom New Zealand (NZT). Since I sold it, the stock is down, the kiwi is down and a lot more bad news has worked into the prices of both.
Today NZD/USD is below $0.60 and the stock is at $19.15. Both prices are lower than a week ago. I was clear that I was not a buyer that day and that I was not considering putting client money into the name.
Now there is some chatter that the company might split up. This is clearly getting more confusing before doing anything else. My intention in buying, when/if I ever do, is to make an investment not to try to bottom tick a falling stock.
This is good stuff. Part of stock selection is watching specific names and deciding "no" or "not yet." There are times where stocks that interest you should not be bought. Despite my general fondness, staying away for now is still the better call for me.
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4 comments:
what is NZT's actual current yield - not historical.
I am not sure what it will be other than to say I expect it to drop a lot for a year. I think I have mentioned that previously but perhaps not.
I can't imagine anyone being attracted to NZT. With negative earnings growth, over $2 billion in debt, less than 1% profit margins and just over $4 billon target population, I prefer Turkcell (TKC) which has access to 70 billion people, not to mention another 450 million in Europe.
-- Faisal Laljee
FL,
The earnings will go back up in 2007. Perhaps not enough but they are going back up. The stock has fallen for a lot of reasons. At some point the top down and bottom up problems end which gives the stock the chance to go up and it will offer the yield again-depends on the break up of course.
TKC has many of the same top down problems as NZT. In fact sentiment toward Turkey might be worse than NZ.
Doesn't make TKC a bad bet at all but worth mentioning.
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