If Bt has bought back 2million 5 thousand shares to day. How come it shows on trades as a sell?

I would imagine there are plenty of sovereign funds waiting to pounce on key assets, when they start to make moves on companies like BT it might be a good indicator of reaching the bottom.

I know the markets always look forward, but it doesn't feel like we are there just yet.

Now 165p could fall further in next 12 months.

What kind of comment is that - "could fall further in next 12 months"? Of course it could. It could also go up in the next 12 months. Or it could stay the same over the next 12 months. My prediction will be a combination of all 3 options. Now that's insightful....

Ok 100p then if you must insist..lol.

Goldman Sachs Global Investment Research 1
ACTION
Buy
BT Group (BT.L)
Return Potential: 31%
Beaten up valuation, levers to pull, upgrade to Buy
Source of opportunity
BT has underperformed the sector by 20% ytd and 40% over 12 months, as
prospective margin expansion at Global Services and the benefits of its
21CN network investment have been deferred, LLU has impacted BT
Wholesale and its pension scheme has headed into deficit. In our view, the
downside risks are now substantially discounted in the price. We also
believe the dividend commitment (9.7% yield) can be met and note that
LLU net adds are now less than half the rate of six months ago. We believe
management has scope to act on costs and the stock provides attractive
option value over improved earnings visibility. We upgrade to Buy.
Growth
Returns *
Multiple
Volatility Volatility
Multiple
Returns *
Growth
Investment Profile: BT Group
Low High
Percentile 20th 40th 60th 80th 100th
* Returns = Return on Capital For a complete description of the
investment profile measures please refer to
the disclosure section of this document.
BT.L
Europe Telecom Services Peer Group Average
Catalyst
BTs fiscal 2Q results are due on November 13, 2008 and we expect the
company to both deliver on its dividend commitment at the interim stage
(5.5p forecast of a full year total of 16p) and to increase its focus on cost
control and FCF generation. OFCOM is to publish its second consultation
document on access network pricing this autumn, a potentially significant
positive for the group, in our view. The triennial pension scheme valuation
is priced at end-December 2008 but will not be published probably until
around the time of the full-year results due in May 2009, for which our EPS
estimate rises 5.1% to 23.5p.
Valuation
Our 12 month DCF-based price target falls 14% to 215p (US$39.37 per
ADR) due to a higher pension deficit, lower Global Services EBITDA and
allowing for the final dividend going ex.
Key risks
Risks to our view include the fact that the dividend might be at risk if the
company feels it needs more financing flexibility; slowing fixed
broadband, lack of demonstrable benefits to date from the 21CN
investment and uncertain pension financing.
INVESTMENT LIST MEMBERSHIP
Pan-Europe Buy List

Coverage View: Attractive
United Kingdom:
Telecom Services


Key data Current
Price (p) 164
12 month price target (p) 215
Upside/(downside) (%) 31
BT Price ($) 30.09
BT 12 month price target ($) 39.37
Market cap ( mn) 12,781.5
Enterprise value ( mn) 24,896.5
3/08 3/09E 3/10E 3/11E
EPS (p) New 24.39 23.48 22.71 22.70
EPS (p) Old 24.39 22.34 23.27 24.99
BT EPS ($) New 4.77 4.59 4.44 4.44
BT EPS ($) Old 4.77 4.37 4.55 4.89
P/E (X) 12.0 7.0 7.2 7.2
BT P/E (X) 6.9 7.0 6.8 6.8
EV/EBITDA (X) 5.3 4.3 4.2 4.1
Dividend yield (%) 5.4 9.8 9.8 9.8
CROCI (%) 11.4 10.2 9.2 8.6
Price performance chart

160
180
200
220
240
260
280
300
320
340
Aug-07 Dec-07 Mar-08 Jun-08
340
360
380
400
420
440
460
480
500
520
BT Group (L) FTSE World Europe (GBP) (R)
Share price performance (%) 3 month 6 month12 month
Absolute (27.8) (31.3) (46.9)
Rel. to FTSE World Europe (18.5) (24.1) (41.0)
Source: Company data, Goldman Sachs Research estimates, FactSet. Price as of 8/26/2008 close.
Simon Weeden
+44(20)7774-2230 | simon.weeden@gs.com Goldman Sachs International
James Sawtell
+44(20)7774-1319 | james.sawtell@gs.com Goldman Sachs International
Hugh I.McCaffrey
+44(20)7552-5781 | hugh.mccaffrey@gs.com Goldman Sachs International
Sonalee Parekh
+44(20)7552-9072 | sonalee.parekh@gs.com Goldman Sachs International


The Goldman Sachs Group, Inc. does and seeks to do business with
companies covered in its research reports. As a result, investors should
be aware that the firm may have a conflict of interest that could affect
the objectivity of this report. Investors should consider this report as
only a single factor in making their investment decision. Customers in
the US can receive independent, third-party research on companies
covered in this report, at no cost to them, where such research is
available. Customers can access this independent research at
www.independentresearch.gs.com or call 1-866-727-7000. For Reg AC
certification, see the text preceding the disclosures. For other important
disclosures go to www.gs.com/research/hedge.html. Analysts
employed by non-US affiliates are not required to take the NASD/NYSE
analyst exam.
The Goldman Sachs Group, Inc. Global Investment Research

If it goes to 100p mitzy, which I don't think it will, it'll be snapped up.

I'm not really saying it will queen1 but at that price I will buy given that GS are suggesting 215p target..

Indeed.....

Tipped by three of The Four Wise Monkeys including David Stevenson (FT/Investors Chronicle). Website address below.

http://www.4wm.co.uk

IC tipped BA a month back at 250p now 195p.. and JKX at 405p a month ago now 300p.

thats quite good for IC.

Bought some this morning, not held these for quite a while but seeing as they have underperformed the sector and with a decent yield, although that could be pared back, with the possibility of upgrades and the fact that they haven't (to my knowledge) been @ these levels for a long time, I've taken the plunge. Good luck all.
2517

Actually touched 137p for a while suspect it will be cheaper next week.

Touch 125p this am.

Picked up some more @ 132 and also BP @ 376.
2517

Well done George I'll wait a bit.

Mitzy, I know co's may well get cheaper still, but what a fantastic opportunity to pick up blue chip shares at knock down prices. I have up to a 3 year view, but I will take profits on the way if / as they arise. Good luck all. Don't be panicked into selling your shares cheaply, they will come back, imo.
2517

I'm still going to wait for 120p ish how about you G..

Mitzy, I'm sticking with my 2 purchases in BT.A (was in profit y'day) and also my SBRY holding which is showing a small loss, I did take advantage of y'days strength in BP. to sell @ 458p, having bought @ 376P so quite happy. I'm fully loaded really with BT.A so if they did fall to 120p I would not increase my holding in them. Good luck all.
2517

I 'm in Sains too G in profit just about.