Future Earnings of Telecom Stocks Remains Cloudy

Daily PostAugust 03, 2005

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Summary


OVER the last few years, UK telecom stocks have undergone an immense period of change. Share prices have reflected this with the average price rising by around four times between late 1997 and March 2000 before giving up all that gain and more in the following two years and then rebounding by over 50% to their current levels.

Over recent years, management teams have been busy restructuring, rebuilding and in many cases reinventing themselves. By and large, companies have done an excellent job given the difficulties in which they found themselves three orfour years ago. Debt levels have been paid down, costs have been stripped out, focus has been shifted to realistic areas of growth and, as a result, shareholder returns have improved.

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Extract


Future Earnings of Telecom Stocks Remains Cloudy

Nevertheless, despite their best efforts, many of the markets in which the companies operate, still suffer from over-c...

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