Why I am buying BTThanks for viewing,
I'm not sure I have the time to include my full reasoning.
- June 2020 reported both revenue and EBITDA down 7% yoy, which is certainly less of a decline than a lot of businesses - and way less than the drop in UK GDP overall.
- Profitability at end of March 2020 was pretty good, and after reporting an interim dividend of ~4.7% (the interim dividend is 30% the size of the final dividend) they halted dividends for the 2020-2021 year. That is quite prudent, and the -7% revenue numbers reported months after that seems to suggest that the hit to profitability will not be too great.
- It is quite hard to get a handle on where we are in the overall correction since 2015, but recently, the share price appears to have completed an identifiable 5 waves (of some degree) that started in October 2018. This suggests we are due at least a correction of some degree (if not a change of trend).
- An ending diagonal has formed since March 2020, this could be a bullish sign. I often see such formations at the bottom of a commodity price cycle.
- There is bullish RSI divergence unfolding - when declining price is displayed as a series of higher lows on the RSI. This, if nothing else shows a slowing of the price trend and is often present before prices change direction.
- www.macroaxis.com (its a secondary source) shows on 31 March 2020 EBITDA isn't that much lower as compared to when BT was at the top of the previous price trend - in 2015-16, when BT was worth over 500 (this was despite a major lease payment over 800m pounds in the prev annual report - which isn't paid every year). So earnings per share have dropped 30% but share price is down 80%? Seems to indicate value to me.
- They will not be paying dividends this year, which I like, it is a good idea in uncertain times. Better to re-emerge strong than to deplete oneself in lean times.
- Based on previous dividends - which are highly stable and reliable - they could be paying and over 15% return - so I expect price to go up in 2020 - early 2021 in expectation of the resumption of dividends.
- Very good dividend coverage ratio - I think only about 30% of EBITDA is distributed as dividends, so even quite large variations in profitability will still allow reinvestment in the business and for dividends to be maintained.
- I think Brexit fears are over-blown. Yes there are a number of stories that BT will lose some European contracts due to Brexit, and even if that happens, this will not represent a sizeable hit to profits.
- PE ratio is 5.67 - value investing normally recommends buying when PE is below 10-15.
- Price to book ratio is 0.66 - so the entire businesses equity and future profit stream are valued at less than 70% of just net assets. Seems to indicate under-valuation - especially for such a high dividend potential equity.
- Despite competition, they provide 37% of broadband and seem to do well against the competition in cellphone coverage.
- People still need their cellphone and Wifi is basically an essential in 21st century, whether you work from home or not. Most of their drop in revenue was due to lower economic activity in general - but the base-line revenue is quite solid.
- If you believe in the "new tech-based economy" (that has resulted in TESLA trading over 1200 times earnings) well Companies like BT will be the foundation of this, providing internet and communications infrastructure.
Medium-term I see the 0.382 fib retracement as a plausible price target at 250 (+200%). If FY 2019-2020 dividends are maintained after next year, that will still allow a 5% dividend to be paid, which is better than the average - currently 4.81% for the FTSE 100. Yahoo finance puts a fair value fr BT at 200 uk.finance.yahoo.com - so 250 isn't "pie in the sky".
Its definitely under-valued - so I will start to average in. Time horizon; buy in within the next 3-6 months and hold for 5+ years.
I guess I did have time lol
BT
EURUSD | SWING - 28. AUGU. 2020Hello Traders Welcome Back.
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Here is the full analysis for this pair, let me know in the comment section below if you have any questions, the entry will be taken only if all rules of the strategies will be satisfied. I suggest you keep this pair on your watchlist and see if the rules of your strategy are satisfied.
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303p - 330p Long term target swing from 100p / 75p entry #ftseAs a long term investment I am looking into start scaling in slowly in BT as I believe that UK economy will thrive in next few years once this period is over.
a 300p (200% from this price level) will give a great return alongside dividend for many investors.
I believe scaling in will be a better strategy then all in.
Please do remember we might still do a double bottom at 75p!!
BT Group - Filled the gapBuy BT Group (BT.A.L)
BT Group plc is a communications services company. The Company is engaged in selling fixed-voice services, broadband, mobile and television products and services, as well as various communications services ranging from phone and broadband to managed networked information technology (IT) solutions and cyber security protection.
Market Cap: £18.96Billion
BT has broken out of a channel pattern on the daily chart. The shares recieved a boost following the Conservative win in the General Election and the shares gapped higher. We have now seen that gap get filled, which should attract fresh buying interest.
Stop: 181.6p
Target 1: 212p
Target 2: 230p
Target 3: 265p
BT - Dialling upBuy BT Group (BT.A.L)
BT Group plc is a communications services company. The Company is engaged in selling fixed-voice services, broadband, mobile and television products and services, as well as various communications services ranging from phone and broadband to managed networked information technology (IT) solutions and cyber security protection.
Market Cap: £18.96Billion
BT has broken out of a channel pattern on the daily chart. The breakout move has retraced 50% of the impulsive move higher and retested the broken channel. The shares appear to be stabilising around 185p, while the Conservatives remain in the lead in the opinion polls then the shares could continue higher in relief of avoiding the threat of part nationalisation from a Labour Government.
Stop: 181.6p
Target 1: 212p
Target 2: 230p
Target 3: 265p
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Bitcoin 4hr chart P.M. 11/7/2019Good afternoon everyone. I am taking a look at the 4hr chart today and noticing we did slip right through that break in the cloud. It happens often when you see things like that and the candles are close it almost seems like a magnet. Now we are on the bottom of the cloud where we are currently finding some support (We are also pretty close to testing the 200 MA on the daily chart as well) So there is some support below us. Thing is this pesky 4hr 50 MA is acting as resistance at this point in time and it is likely to suppress the candles until we break out of this. We are currently trading at around 9200 which has been pretty strong support for days and we are in a tough spot being under the 4hr 50 MA but Ive seen a flash of some bullish sentiment in the chats and groups Im a part of. The bolinger bands are seriously tightening on this 4hr time frame and I imagine we will see some movement pretty soon. RSI dropped a bit today as the price also dropped a bit too. (The two are correlated ) That 200 MA below us could provide some support if we break down. 8500 - 8600 area. Daily volume today is at $22,650,098,889 which is still pretty good considering where we were a few weeks back. I have been continuously impressed with daily volumes over the past few days. Lets hope the bulls take it and run with it. (WTFDIK?)
BTCUSD testing resistance, potential drop!Price is testing our first resistance (horizontal overlap resistance, 100% Fibonacci extension ,38.2% Fibonacci retracement ) where a strong drop to our major support (horizontal pullback support, 50% Fibonacci retracement , 61.8% Fibonacci extension ) might occur. Stochastic is also approaching resistance where we might see a drop .
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We will fly past 10k and then 20k in the near future XBTUSDWhat's up guy's and girls LiquidMEX here with another prophecy from the future!
As so many know all my calls on XBTUSD have been SPOT ON! $8800 call yesterday NAILED IT!
As well as so many more it would take all day to name them all so have a look for yourself in the
related ideas box to view some of them follow me if you want REAL SOUND MARKET ADVICE not garbage.
Quick summary of current chart XBTUSD, We will break right past 10k and all SHORTS will get REKT you
may mark my words on this as i know they will be SHORTING from 9500 all the way to 10500. Don't be fooled
some of the TOP RATED TRADERS on tradingview post some of the worst charts i have ever seen and you may use
them as a indicator so when they are SHORT go LONG! Well best of luck trading PS i would not recommend shorting
this market as 9/10 you will either get liquidated or stop hunted, recognize that BTC is not going back to 5k at this point!!!!
Thanks, LiquidMEX
DISCLAIMER:!!!This is not to be considered financial advice is my personal opinion, always do your own research before entering or exiting trades as i will not be held liable for any of your trades!!!