Slowly But Surely



By: YOSEF TASTASSA  
Published: November 25th 2010
in Economics » Local

Telus

Steady growth

 

When looking at Telus Corporation’s (NYSE – TU, TSX – T) share performances in the last 12 months we can see a stable growth with relatively little fluctuations. During the first quarter of 2010, Telus Corporation was traded around $30. Less than a year later, Telus Corporation’s shares are traded for almost $45. The 50 per cent upside in the share was firm and steady and many investors must be satisfied with the fantastic yield for their investments.

 

When looking at the curve of Telus Corporation’s share, we can draw a regression line and expect more positive performances in the future.

 

Technical data pro and against Telus

 

The positive curve is not the only thing that one should look at when deciding about purchasing shares in the market. Here are some more indicators that may help you make better decisions:

 

Analysts' estimations – against

 

The last analysts' opinion gave Telus a target price of $39. The last three analysts’ opinions, two of which were made by UBS, gave Telus a Neutral opinion, meaning neither buy nor sell.

 

EPS – pro

 

The EPS is $2.96 and the share's value is $44.6 meaning that the P/E or the earning multiple is only 15, not very high for that sector.

 

Volume of trading - against

 

The average daily volume is $116 thousand; yesterday's trading volume was barely $95 thousand. The figure is very low when compared to a company value of $14.3 billion. A low trading volume means that the value may be twisted and affected by very few shareholders and also one may find it difficult to sell his shares in the market.

 

 

 

 

 

Dividend – pro

 

On November 5, Telus Corporation raised its quarterly dividend by 5 per cent to C$0.525 per share. Getting dividend is always good. You get extra profit for your investments and at the same time the company is sharing its profits with the shareholders.

 

Financial reports – neither

 

The company is profitable and its 3Q reports were not as good as 3Q reports in 2009, but they were better than the analysts' expectations. Telus Corporation’s revenue was $2.46 billion, higher by 1.8 per cent from the $2.41 billion only a year ago. However, the profit slipped by 12 per cent when compared to 3Q in 2009.

 

Summary

 

Many indicators give you a better view of shares in the market. When thinking of investing in shares do the following:

1.  Get information about the sector.

2.  Compare the company's performances to competitors.

3.  Read the news.

4.  Read analysts' opinions and estimates.

5.  Read the technical analysis and get assumptions about the future.

6.  Analyze the company's balance sheets, look for debts.

 

Check if the company is paying its debts to bonds and shareholders.



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