Tuesday, December 8, 2009

Stock of the Week: Telecom Ltd

Telecom New Zealand Ltd [TEL.NZ] is a good stock to trade rather than hold long term simply because the trading volume is consistently the highest on the NZX and that is why I have included the company in this Stock of the Week series.

I am not a chart man myself or a short term trader but if you look at the one year chart above there has been a good deal of money to be made in the earlier part of 2009, going from around 10c per share right up to 60c per share profit.

The share price reached an 8 month low of NZ$2.36 yesterday and has risen like a roller coaster (hence the trade possibilities) from a year low reached in mid January 2009, so one could assume that indicators are showing that an opportunity exits for a good trade at these stock price levels and a good range for profit made considering its recent trading history.

I don't like the long-term prospects for the company, it still has a defensive, reactive culture with employees who are badly trained and informed on what they are selling and poor service levels but it has a 10% plus gross dividend and it isn't going to go out of business any time soon.

Shorties will win here.

Good luck!

Telecom @ Share Investor

Revisiting Telecom

Getting cute and fluffy with Teresa Gattung
Telecom NZ Hangs up
Business Gobbledygook puts up barriers to communication
A Rare Breed
Telecom NZ facing a watershed period
Biology a major key in "glass ceiling" for women
Telecom rewards Gattung for mediocrity

Discuss this stock at Share Investor Forum - Register free

Stock of the Week Series

Reprise - Contact Energy Ltd
Restaurant Brands
NZ Refining
Ryman Healthcare
Mainfreight Ltd
Fisher & Paykel Healthcare
Xero Ltd
Auckland International Airport
Sky City Entertainment Group
Burger Fuel Worldwide
Michael Hill International
Contact Energy Ltd
The Warehouse Group
Fisher & Paykel Appliances

From Amazon

Getting Started in Chart Patterns (Getting Started In.....)Getting Started in Chart Patterns (Getting Started In.....) by Thomas N. Bulkowski
Buy new: $13.57 / Used from: $9.98
Usually ships in 24 hours
Chart Your Way To Profits: The Online Trader's Guide to Technical Analysis (Wiley Trading)Chart Your Way To Profits: The Online Trader's Guide to Technical Analysis (Wiley Trading) by Tim Knight
Buy new: $44.10 / Used from: $36.95
Usually ships in 24 hours

c Share Investor 2009