Telstra Corporation is under Algo Engine sell conditions after forming a lower high formation at $3.60 back in July.
Telstra reported revenue for the year down 6% to $24bn, profit down 14% to $1.84bn.
Telstra estimated the coronavirus economic-related impact caused a $200 million hit to earnings.
Telstra is likely to trade within the $3.20 support to $3.50 resistance range until late 2021 when we look for the further action on Infrastructure Co spin-off to result in a break to the upside.
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.
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Telstra Corporation was added into our ASX 100 model portfolio in September last year at $3.57.
The stock is now up 7.8% to $3.85 and is approaching short term overhead resistance.
TPG Telecom is also under Algo Engine buy conditions.
Telstra Corporation is under Algo Engine buy conditions and is a current holding in ASX 100 model portfolio.
We see value at $3.58
Telstra Corporation is under Algo Engine buy conditions and has now been added into the ASX 100 model portfolio.
We see price support developing near the $3.50 price level.
Telstra’s 1H19 earnings were in line with consensus and mobile did better-than-expected. The ongoing progress on cost-out initiatives will be supportive for stable future dividends.
Assuming 16 cents as the base dividend, Telstra needs to deliver around $7.5bn in EBITDA. We view this as achievable and place TLS on a 5.9% forward yield.
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.
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.
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.
The S&P/ASX 200 Index finished the week to Friday up 1.3%.
The best performer was the Telecoms sector, up 6.1%. Telstra Corporation led the performance rising by 6.9%.
The worst performer was the Materials sector, down 1.2%.
Stay long the XJO index with a stop loss below 6174.