BT.A Shares -- Under valued?

[Fiddlers Retreat]

Anyone got an opinion on BT shares?

To me they seem a bit under-valued. And the last 2/3 days they’ve been moving sideways (hovering between 276.5 to 281p) -- although today they seem to have come out of that congestion -- and finished in a mini-uptrend.

My expectation is they will go up -- although they seem to be lagging around. They were 330p not so long ago.

Matt

 

[Bagehot]

Anyone got an opinion on BT shares?

To me they seem a bit under-valued. And the last 2/3 days they’ve been moving sideways (hovering between 276.5 to 281p) -- although today they seem to have come out of that congestion -- and finished in a mini-uptrend.

My expectation is they will go up -- although they seem to be lagging around. They were 330p not so long ago.

Matt

Depends what time-frame you're talking. They're out of favour at the moment - a lot of brokers were starting to talk about fixed/mobile substitution risk before the Q3 results which were worse than expected, so it's got people worried about the core UK business. Since then there's been noise on regulation, NGA capex, ULL competition and other negative points. Don't see much absolute downside given the dividend yield, so low risk, but nor do I see a catalyst for a re-rating, at least until we get some numbers dis-proving the bears' concerns. Basically a bit like a dull bond rather than an equity play at the moment. France Tel looks much more interesting - similar yield and valuation but growth too.

 

[zambuck]

Anyone got an opinion on BT shares?

To me they seem a bit under-valued. And the last 2/3 days they’ve been moving sideways (hovering between 276.5 to 281p) -- although today they seem to have come out of that congestion -- and finished in a mini-uptrend.

My expectation is they will go up -- although they seem to be lagging around. They were 330p not so long ago.

Matt

....A fellow RC Plane enthusiast.....I used to fly them some time back....no longer now....I still have Enya 0.45 and 5' 6" top wing trainer...with Futaba RC....stored away in garage.....

Coming to your question...

What opinion can one have..?...It dropped like a lead when Results were announced on 8 Nov 07...! Investors Chronical had an opinion on this one on 16 Oct 07 - Fairly Priced at 3.06....!!

Is BT.A undervalued now or was it overvalued few weeks back..?

The value of stock is what people are prepared to pay...at THAT particular time....unlike shop where value is set....or goes on sale at lower price...!

What is the chart saying.....There was a very good buy around 22 Nov 07 but that rally has gone....

Again I always 'expect' that shares should go up....But then my expectation is not worth anything....It is what markets will decide....

I tend to look at charts and if I 'see' anything that I like I trade otherwise I move on....there are plenty of opportunities in the market elsewhere...

HTH...

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[Fiddlers Retreat]

Thank you both for your replies...

some good points there, esp the "Is BT.A undervalued now or was it overvalued few weeks back" that will stick in my mind forever now, a good Q to ask.

pleased to see someone else who flys RC... i used to have the glow engines, in an array of models, but i have now moved to fully electric -- the only reason being the fast set up at the field, and less stuff required (as i tend to fly when i go caravaning -- dont really have time when im at home (and even when i do the weather is usually cr@p)).

With BT, i was thinking very short term movement (where will the price be in a week for example?)

i have been doing a bit of day trading on them, making good entry and exits (spot on to the 1/4 of a p), would like to do a larger trade.

Matt

 

[zambuck]

What parameters do you use to trade...??

Below is my opinion and not a recommndation to trade...!!

....Ex Divident date is on 24 Dec 07....Last few occasions this stock has risen after that date.....

At this stage this one is on a hold mode....unless CMO is in rising mode and crosses over MA of CMO....ADXR must be in rising mode. If this does not happen then I will not consider this as a buy.....But then I have been known to be wrong...!!

Attached chart shows CMO Buy arrow but not others like Sell arrows as I am middle of changing the chart parameters....I have just taken a snippet of a typical chart that I use....RMO is in Sell mode so time to wait......

I attach couple of charts from Metastock and Sharescope....

Shrescope shows the events and intraday chart.....Note Broker opinion....Sometimes I look at this to see what 'fundamentalists' are thinking.....!!...It is good see that often they are wrong....!!

 

[Fiddlers Retreat]

..For the little day trades i was doing earlier this week, i was just using Support and resistance lines, with 20 and 50 day averages (mainly using S&R tho) - worked very well in this case. lower support being 276.5p upper resistance of 180p (these numbers did move around slightly over the 3 days, but not significantly)

with the Ex-Div payment -- how would this effect a CFD trade?

would the CFD be adjusted on the 24th of this month, or the "pay date" which is 11/02/2008?

-----a copy of info from my platform----
Dividends
Latest Previous
Interim Final
Ex-Div 24-12-07 22-08-07
Paid 11-02-08 17-09-07
Amount 5.40p 10.00p
---------end of copy--------

help much appreciated

Matt

 

[fibonelli]

don't forget to check the, ahem, pension fund