is there something about BT I dont know, their share price has been going relentlessly down since march with a little blip in august around divident time
I was reminded looking at Accrols' chart of a really good article on stockopedia about spotting a profit warning or an approaching catastrophe. Those in the know start selling and as the knowlege base grows the companies charts starts to look very bearish, then suddenly the news comes out, big bang, big dive
At present their debt is over 3 times profit before tax, which is a bit high, but other than that there quality and value scores are quite good
Not sure how their TV business is going, but googling the reviews customers seem happy and they have something going on with Netflixs.
That said thinking about it as I write it, I dont know much about their TV deals because I dont watch telly very often which is the same for a lot of people these days
BT did have a disaster in Jan, their Italian branch had been unprofitable for years and theyve been covering it up. So they do have recent form of dumping big announcements on us
am i barking up the wrong tree, overlooking something, am i wrong and is BT about to have a nice bounce
keen to hear your views
Hi ambrosia.
Ed Croft did a good piece on the apparent red flags for £BT.A at the time of its Jan profit warning.
https://www.stockopedia.com/content/six-red-flags-that-could-have-saved-you-from-the-bt-profit-warning-168451/
Add this to the detailed empirical study done by Stocko about the typical post profit warning stupor that many shares fall into and you can see its subsequent tail off after a brief summer rally is a textbook case.
In terms of the underlying business, they still seem to be struggling for a coherent strategy. Playing catch up to Sky bidding crazy amounts to secure football TV rights to anchor their limited sports offering seems to be an expensive mugs' game. As a customer, I wish they would simply do their day job properly and get the fixed line and digital fibre network sorted out. It took me the best part of nine months and several calls to the office of the Chairman to get fibre internet access installed (I live within 20 miles of Central London) and even now the service is patchy.
With a p/e of 10 and dividend yield of nearly 6% you would expect this to be a decent investment but it's hard to see this particular elephant walk let alone gallop at the moment.
Gus.
