{"id":44036,"date":"2013-08-12T23:17:54","date_gmt":"2013-08-12T21:17:54","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=44036"},"modified":"2013-08-13T08:57:29","modified_gmt":"2013-08-13T06:57:29","slug":"what-is-going-on-at-telkom","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/telecommunications\/44036\/what-is-going-on-at-telkom\/","title":{"rendered":"What is going on at Telkom?"},"content":{"rendered":"

Shares in Telkom<\/a> climbed for yet another day on Monday (12 August) as investors continue to show new found confidence in the group\u2019s ability to turn itself around.<\/p>\n

Telkom\u2019s share price has lifted 31% or R5.32 since January, and 67% over the past three months. It closed at R22.25 on Monday, well away from its 52-week low of R11.34 in May, and\u00a0giving the group a market cap of R11.59 billion.<\/p>\n

While opinion amongst analysts is still divided as to the actual value of group, its management has shown great confidence through share purchase.<\/p>\n

In late July, CFO of Telkom Jacques Schindeh\u00fctte<\/a>, purchased 55,000 shares at a value of R994 340.38, following in the footsteps of CEO Sipho Maseko<\/a>, and chairman Jabu Mabuza<\/a>, who bought 52,520 shares worth R999,980 and 26,000 shares worth R497,581, respectively.<\/p>\n

Nadim Mohamed<\/a>, investment analyst and partner at First Avenue Investment Management<\/a> said: “It is interesting that many of the board members as well as CEO and CFO have been buying shares recently.\u00a0 This is a strong signal of the board\u2019s confidence in the turnaround strategy and value that they believe it will unlock.”<\/p>\n

“It\u2019s good to see the board have some \u2018skin in the game\u2019 as it aligns their interests closer to the company.”<\/p>\n

Mohamed however, cautioned\u00a0not to read too much into it from an investment perspective \u2013 “in my experience, share price is driven by the long term economics of the company and the market has yet to see signs of this recovery in Telkom”.<\/p>\n

Irnest Kaplan<\/a>, MD of\u00a0Kaplan Equity Analysts<\/a>\u00a0pointed out that Telkom’s shares have been undervalued for some time.<\/p>\n

\u201cIt is fair to say that Telkom\u2019s share has been largely undervalued for some time. Arguably, it\u2019s dropped too much,\u201d the analyst said.<\/p>\n

Earlier in August,\u00a0Telkom\u00a0announced the conclusion of its substantive negotiations with trade unions the Communications Workers Union (CWU<\/a>), the South African Communications Union (Sacu) and Solidarity<\/a>.<\/p>\n

It marked an end to a dispute which\u00a0began in March, after Telkom announced that management and bargaining unit staff would be afforded the opportunity of applying for voluntary severance packages (VSPs) and early retirement packages (VERPs) until the end of August 2013.<\/p>\n

And in mid July, the Competition Tribunal approved the settlement drawn between\u00a0Telkom\u00a0and\u00a0Competition Commission<\/a>, which would see the incumbent telco pay a R200 million fine for market dominance abuse.<\/p>\n

\u201cIt will allow the [Telkom] to move beyond legacy complaints and litigation that have been a drag on performance, strategic focus and sound partnerships and which occupied the attention of senior executives for a long period,”\u00a0said Telkom’s\u00a0Sipho Maseko.<\/p>\n

In June,\u00a0Telkom\u00a0decided to impair the carrying value of R12 billion worth of assets, giving the group \u00a0a\u00a0net asset value per Telkom share of R34.<\/p>\n

More on Telkom<\/h3>\n

Telkom and unions kiss and make up<\/strong><\/a><\/p>\n

Telkom settlement given green light<\/strong><\/a><\/p>\n

Maseko buys up Telkom shares<\/strong><\/a><\/p>\n

Telkom market cap hits R10 billion<\/strong><\/a><\/p>\n

Telkom is no darling: analyst<\/a><\/strong><\/p>\n

Telkom a re-run of the same movie: Analyst<\/strong><\/a><\/p>\n

Telkom earnings sink\u00a0<\/strong><\/a><\/p>\n

Sipho Maseko the new Telkom CEO<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Shares in Telkom climbed for yet another day on Monday as investors continue to show further confidence in the group\u2019s ability to turn itself around.<\/p>\n","protected":false},"author":9,"featured_media":44042,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[1516,1553,26,1529,4816,1079,1528,3757,2414,1632,65],"class_list":["post-44036","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-telecommunications","tag-competition-commission","tag-cwu","tag-headline","tag-irnest-kaplan","tag-jabu-mabuza","tag-jacques-schindehutte","tag-kaplan-equity-analysts","tag-nadim-mohamed","tag-sipho-maseko","tag-solidarity","tag-telkom"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/44036","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=44036"}],"version-history":[{"count":8,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/44036\/revisions"}],"predecessor-version":[{"id":44045,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/44036\/revisions\/44045"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/44042"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=44036"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=44036"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=44036"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}