Tuesday, March 15, 2011

Share Price Alert: Telecom New Zealand Ltd

Telecom New Zealand Ltd [TEL.NZX] has once again reached a share price level below 2 dollars at close of trading yesterday. Shares closed down 5.5c or 2.7% to close at $1.985c

The shares last plumbed these depths in August 2010 after surging to an all time low in June of the same year of $1.78.

This has come after NPAT was down 32% for the half year to December 31 2010. The shares have dropped 36.5c or 15% from a 52 week high of $2.33c, since the profit announcement of February 12.

There has been little positive news out from the company in a month and the outlook for FY 2012 looks like it might be down on 2011.

The support at the 52 week lows last year was on average volumes sold so this resistance could come under more pressure as largely foreign owners of this stock (some from Japan) dump stock for much needed cash.

The company is worth buying at these levels and lower just for the dividend a a quick flick when the shares come back into favour again.

Global markets will come under pressure tomorrow from todays 6% drop in the Nikkei Index, so there will be further opportunity to buy.

Share Price Alert

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Telecom NZ @ Share Investor

Telecom New Zealand 2011 first half profit review
Telecom New Zealand 2011 first quarter profit review
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Telecom maybe oversold
Telecom NZ Share Price has "Jumped the Shark"
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Telecom NZ: TV3 60 Minutes Segment more like Corporate PR
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Long Term View: Telecom NZ Ltd
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Revisiting Telecom

Getting cute and fluffy with Teresa Gattung
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Download TEL Company Reports
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c Share Investor 2011


  1. Hey Darren,
    A little off topic, but the recent Christchurch earthquake, Japan earthquake/tsunami and impending nuclear meltdown has been pounding the stockmarket lately and my portfolio is digging deep into the red. Telecom being one of the stocks in my portfolio and it's rapid downtrend has got me worried, but I'm going to be brave and hold onto my stocks!

    What do you make of all these recent events? Do you think the world is over reacting? Or should we actually be worried?

  2. Hi Raff, mmmm, I think most of the bad news has been factored into the TEL share price but the uncertainty of its future earnings is stopping it from rising.

    I must quote myself here. 3 years into share ownership 9/11 happened and I sold my $70000.00 portfolio for $55k because I panicked. The market opened at 10 and I had it sold 15 mins latter.

    What I should have done instead was buy on that day.

    There could be more bad news on the global economic front from this and other macro shocks, so keep some cash handy.


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