August 08, 2012
Tomorrow Telstra reports. Brokers are optimistic. Goldman Sachs expects a 13.8 per cent profit rise to $3.56 billion. Let's hope they are right. An almost 14 per cent increase in profit should prevent a share price fall after the recent substantial rise.
What all shareholders are interested in is what Telstra will do with its enormous moneybag. It had seemed to be looking overseas, tacking stuff on in China - but it has sold its New Zealand subsidiary TelstraClear for $660 million.
Perhaps Telstra could stay home and invest locally or start up an operation similar to the Telstra laboratories that it shut down several years ago?
The Fairfax saga continues but in my view at 52c it is worth a small, initial investment. Some have criticised Fairfax for being too liberal; but writing in the Australian Financial Review former Labor Party leader Mark Latham makes a valid point. ''You have The Sydney Morning Herald and The Age fighting for survival and the [state controlled] ABC appealing to exactly the same audience. They are cannibalising Fairfax.''
■ wharcour@bigpond.net.au