1. Most Discussed
  2. Gainers & Losers
TLS $3.55

Vodafone <VOD.L> fell 6.1 percent

  1. The benchmark index <.FTSE> shed 86.6 points or 1.9 percent
    to 4,460.2 by 0845 GMT, having fallen three percent in the
    previous session in a slide which wiped 33 billion pounds off
    blue-chip shares.

    Vodafone fell 6.1 percent, hitting 4-1/2 year lows
    amid industry accounting concerns. It tumbled on Tuesday as
    investors mulled the prospect it may buy Vivendi
    assets if that company decides to sell parts of the business.

    "Any company that's been big in acquisitions recently,
    especially among TMTs, is a suspect on the accounting front, and
    particularly if it's big like Vodafone because it's more
    difficult to tell exactly what they've done," said one senior banker.
    -------------------------
    TLS is the one of most expensive Telcom in the world in term of P/E.( 16 Vs average 13.5).

    TLS spend $3.5Bn~$4Bn on so called 'operation capital expenditure' each year, most of them more likely are the expense rather than the capital expenditure.

    in 2000, operation capital expenditure is $4.729 Bn
    in 2001, operation capital expenditure is $4.059 Bn
    in 2002, operation capital expenditure is expected at $3.7 Bn.

    In my view these money which are spent on Switching, Transmisssion, Customer access are expense for the maintenance, are the cost for the business to stay on.

    If these items treated as expense rather than capital expenditure, tls's P/E is over 25!



DISCLAIMER:
Before making any financial decisions based on what you read, always consult an advisor or expert.

The HotCopper website is operated by Report Card Pty Ltd. Any information posted on the website has been prepared without taking into account your objectives, financial situation or needs and as such, you should before acting on the information or advice, consider the appropriateness of the information or advice in relation to your objectives, financial situation or needs. Please be aware that any information posted on this site should not be considered to be financial product advice.

From time to time comments aimed at manipulating other investors may appear on these forums. Posters may post overly optimistic or pessimistic comments on particular stocks, in an attempt to influence other investors. It is not possible for management to moderate all posts so some misleading and inaccurate posts may still appear on these forums. If you do have serious concerns with a post or posts you should report a Terms of Use Violation (TOU) on the link above. Unless specifically stated persons posting on this site are NOT investment advisors and do NOT hold the necessary licence, or have any formal training, to give investment advice.

Top