A quick Wednesday update covering Telstra (TLS.ASX), Optus, capital raisings undertaken by Roto-Gro International (RGI.ASX) and Botanix Pharmaceuticals (BOT.ASX) and, last but not least, Crown Princess Mary of Denmark.
Telstra red-carded by investors after strategy update
Sometimes the market is batshit crazy and trying to make any sense of it does your head in.
Telstra (TLS.ASX) today released its much-anticipated strategy update and was promptly flushed down the shitter.
Well, sort of.
The way some keyboard warriors were going on you’d think the share price had been shaved by about 20% – not so, by the end of days trade the fall was contained to less than 5% and the share price finished where it was trading last week when we told readers it was a good time to buy.
Is it still? Hell, yeah !
Sub $2.80 we reckon you should back up the truck.
Here’s the pdf of the investor presentation if you suffer from insomnia, although we preferred sifting through the ASX market release which, at 6 pages, was much easier to digest.
The main points of the briefing we loved are as follows:
• Creation of a new wholly-owned infrastructure business unit, ‘InfraCo’ to drive performance and provide future optionality for a demerger or the entry of a strategic investor in a post-nbn rollout world
Spin-offs tend to create shareholder value more often than not
• Radical transformation of customer plans and pricing to deliver improved customer experience
The announcement of the reduction in choice from 1800 plans to 20 is sensational. 1800 plans? Serious WTF territory right there!
• 8,000 net reduction in employees and contractors and reduction in 2-4 layers of management
Telstra managers on notice they will now have time to spruce up their Linkedin profiles
• Telstra to remain premium brand and lead and win in 5G
5G is the way forward, as we recently pointed out. Penn is on a winner here.
• Confirmation that the FY18 dividend of 22c is intact.
Juicy dividend coming. Lovely!!
Let’s talk again in 6 months. We’ll either have egg on our faces or look like geniuses.
Optus – victims of their own hubris
Aussie sports fans have been left fuming after Optus fails to deliver World Cup coverage.
After SBS sold the FIFA 2018 World Cup Australian broadcast rights to Optus (keeping a handful of games to themselves), punters were left out in the cold when they tried to tune in via Optus’ streaming solution, venting their anger and frustration using the #floptus Twitter hashtag.
When the debacle entered a 2nd day, Aussie PM Malcolm Turnbull stepped in and had a quiet word to Optus CEO Allen Lew.
Oh to be a fly on the wall for that one!
While we weren’t privy to the conversation, you can be sure Turnbull wasn’t suggesting Lew should take an extra mil from the bonus pool come Xmas time for a job well done.
The press had a field day, as you would expect. Putting the boot in is an Aussie pastime, after all.
We mention it because Optus recently won a court battle over an ad they placed when Telstra took offense.
Wonder how the mood is now around the Optus HQ?
Sometimes you win a battle but lose the war.
Mid-week weedco cap raisings
Business News Australia reports that Roto-Gro International (RGI.ASX) completed an AUD 4.56 million raise while Botanix Pharmaceuticals (BOT.ASX) tapped investors for a total of AUD 8 million.
We recently gave a shout out to BOT in our latest ASX weed piece so we’re hoping they use the money sensibly to propel the share price northwards.
Crown Princess Mary’s allegiance to be tested
Crown Prince Frederik of Denmark must have delivered a killer pick-up line when he spotted Aussie lass Mary back in 2000 at Sydney pub Slip Inn. Four years later she ended up marrying the Prince and they now have 3 beautiful kids.
Ah, who doesn’t love a fairytale ending?
So we’re wondering who she’ll be backing in tonights must win World Cup match between the Socceroos and Denmark.
Over a decade ago, Mary was warned by then Denmark coach Morten Olsen that she “has to make her own decisions but if she chooses Australia then there will be big problems for her in Denmark.”
He then tried to smooth the situation a little by quipping “Princess Mary comes from Tasmania, is that right?. So, is that really Australia?”
Having lived in Tassie for a few years I can tell you they don’t take too kindly to that sort of talk down there.
C’mon Mary – Throw on the green and gold. You know you want to.
–// Craig Amos
FULL DISCLOSURE: None of the companies mentioned in this article are Equity Guru marketing clients