Telstra Corporation is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.

We see buying support at $3.00 and highlight the short-term indicators have now turned positive. 

TLS goes ex-div $0.05 28th August. 

Call our office on 1300 614 002 to discuss the derivative strategy to enhance the income return. 

Buy The Dip In Telstra

Since posting an intraday low of $2.60 on June 29th, shares of TLS have rebounded smartly and reached $3.40 in late August.

Last week’s market volatility has dampened investors interest in the stock over the last few days but, at $3.10, the share price is still 20% above the June low.

Tomorrow’s AGM will be a big test for bullish investors.

In focus will be the Telco giant’s “quantitative based” executive salary and bonus plan, as well as earnings updates across the company’s spectrum.

Given TLS’s target of 45% digital sales growth by 2021, we like the long side of the stock with a near-term target of $3.60.







Telstra Shares Remain Firm

Shares of TLS continue to trade with a positive bias as market commentators remain largely split on how the NBN roll out  will impact the Telco giant’ s bottom line.

We believe investors will get a clearer picture after the AGM, scheduled for October 16th.

From a technical perspective, TLS has been building upside momentum with the next resistance level at $3.30 and solid support in the $3.05 area.


Telecom Merger Helps Telstra

Since slumping to a 7-year low of $2.60 on June 28th, shares of Telstra have risen over 20% during the last two months and reached $3.26 earlier today.

Part of the improvement in the domestic Telecom sector has stemmed from the merger of TPG and HTA, and the increase in scale for all the local providers.

In addition, we see TLS having a distinct advantage over its rivals with the 5-G network expanding revenue streams beyond traditional voice and data services.

As such, we believe the share price will continue to trend higher and the current dividend ratio is sustainable. The next technical chart level is just above $3.60.







Telstra Shares Firm On Venture Arm News

Shares of Telstra have started the new financial year off with a firmer tone rising  3% over the last three days.

Some of the positive sentiment has been driven by the news that TLS has sold 20% of its ventures arm to US private equity firm HarbourVest for $75 million.

The move is part of a broader plan for TLS to become a more technology-focused company and is consistent with the “Telstra2022” strategy announced last week.

HarbourVest has more than $50 billion in assets and the venture fund with TLS is expected to be valued at about $675 million.

After the $500 million loss from the Ooyala fiasco last year, the market may need some convincing that further investment in emerging 5G and next generation businesses will truly add to shareholder value.

It’s reasonable to expect that joining forces with the more experienced HarbourVest validates TLS’s commitment to the venture revenue stream and will see better results.

We believe that at current levels,  TLS represents good value for investors with a medium to longer-term investment time horizon, with an initial target of around $3.90.

At $2.71, TLS is trading at a 9.7 PE and is on a 7.6% yield.