I know there's an existing thread for TEP, but I'm blowed if I can find it.
Anyway, things aren't looking too good for this share at the moment. Been on a downward spiral for some weeks, after hitting over 4.
Very low volume today, and sells seem to equal buys, so why the continuing drop? Seriously thinking of getting rid, and taking what is now a very small (and I mean small!) profit.

Any experts on TEP like to add their two pennorth?

Princess

from advfn
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uchimata - 17 Oct'04 - 23:05 - 640 of 640


To back up what PremierPompey says...

What a fantastic Express Day with more massive opportunities for Distributors to share the excellent value that T+ offers its customers!

The shares will continue to be listed as Telecom Plus plc, but there will be new logo's and re-branding of services.

In brief:

MOBILES

New services (only available to new subscribers):

"FreeCall" offers unlimited free calls any time to other "FreeCall" subscribers.

"Freecall+" also gives unlimited free texts (for an extra 2 per month).

"Freecall++" also gives unlimited free calls from your FreeCall mobile to any Utility Warehouse Discount Club members registered Home landline number.

"ValueCall" offering low line rental (8 per month for SIM only mobiles) and fixed call rates (all "standard calls" are 8p / minute) including cross-network calls.

Great range of handsets FREE OF CHARGE (depending on minimum contract period chosen.)

Insurance against loss / damage of mobiles available on ALL mobiles offered.

LANDLINE

Cable customers can (at last) benefit from free calls to other Utility Warehouse customers - previously only available to BT line customers.

New Guarantee "Cheaper than BT or your whole bill is free".

"More Talk 3" reduced to 9.50 per month, making it substantially better value than other providers like Toucan, One-Tel, Talk-Talk (and over 90 p.a. cheaper than BT)

"Mobile Saver" option for 1.50 per month gives 25% saving on ALL CALLS to mobiles from your landline.

INTERNET

Broadband - up to 1Mbps service available now, 2Mbps on offer from January 2005. 512kbps for 19.95 - upgraded (at no extra charge until June 2005) to the 1Mbps as a special promotion.

New broadband service - MyDataSafe - remote automatic back-up of data files from home computer to secure server (only 3 per month)

ENERGY

And of course the cheapest domestic gas and electricity supplies.

Much more detail but The Utility Warehouse Discount Club is still on top of the game.

For ID's - a new recruitment website is being launched from January 2005. Hosted websites for qualified ID's now FREE!

Business - new range of services being launched from January 2005.

Doubtless I have missed some details, but the overall impression I had (along with the 4,000 or so Distributors at the Express Day) was that The Utility Warehouse Discount Club will go from strength to strength in 2005.

In case you have not already guessed, I am a shareholder, Distributor and customer of T+ and have been for over 4 years... and fairly "bullish" about the whole set-up :-)

azhar

Well done. That is to short-term projections as strategy is to tactics! Should be good press and price movement.

Eric

SP holding steady I would have thought with positive ED things should have started moving.

Started slipping again. any views?

Yes uncertainty ref the gas and elec prices,and what was said to the distributors,in effect,we wont pay you if you only sign up gas elec pon its own...got realise the money/margin is not there,and the telephony related products have got to take up profit slack in the short term...CW in effect has said we will not write bad business and really the shareprice should reflect this,by remaining steady or rising...CW is if nothing prudent and realistic.
Note I am an ID and shareholder,paid up not options

ED write up
http://www.frequenttrader.info/p2.html

A tickup. TEP is well undervalued and should be atleast 300+. Remember directors were buying in on the way down @323.

Another tickup today. holding steady at the moment. very light on volume

ED story appears to have been very positive and turned on the distributors which is the objective anyway. The lack of projections, though, means relatively little impact on price. Suspect not much movement before interims unless there is an earlier trading statement. The PE should drop to around 15 at current prices, price to sales drop to 1.5 and PEG remain below 0.4 On this basis price should return to levels earlier in the year.

Eric

Yes I hope so.

Yes a decent move up today. looking impressive now.

Very quite here. SP holding steady.

Interim x-div (4.5p) 10 - Dec - 2003
Payment date 05 - Jan - 2004

Next interim announcement 17 - Dec - 2004

azhar

Keeping an eye on you all! Wouldn't expect much movement either way before the interim post. That will be important and I would expect it to be positive. Most watchers of TEP assume they will be having difficulties with the competition in utilities not realising that they should really be the one and only share in a sector called network marketing. The ED briefing document was very professional and shows that Charles Wigoder and his management team are very much in control of events. Charles, in some ways, is the company and he is at pains to reinforce his commitment. His continuous buying of shares for family trusts supports this. You certainly get the impression that the success of the company is the really important thing for him, together with making his successful distributors millionaires as well (plus the odd shareholder, who in many cases, are the same people what with option schemes, loads of money to invest, etc.). I have my own funds heavily concentrated on ASC but hope they will hit 1 before Xmas and enable a poistion to be built up in TEP.

Eric

Yes, I see ASC is doing very well in the past few days. Good luck.

Drifting down again. Took some profits recently and will wait to top up. Still holding some form 241. Any views on why it has gone down by so much in the last few days?

Doesn't seem to be any news. I have sold some at 277p but hold quite a few still. Moved some cash into BPRG. Hope I am right. W/S

Why the fall?
Is there some bad news in the results on 14th Dec ?
Hope not

it may be because profit margins are expected to be lower when results are published next tuesday or the fact that this always happens with TEP just before results are published.

Looking at TEP for an investment prior to the results. The price movement indicates a level of pessimism. The PE is down to 20. Last year turnover was up 41% and pbt 90%. The only indicated negative at final results was the pressure on gas prices; TEP have since put an embargo on new custormers for energy only. However, I believe the margin problem was short-term and will have gone now. I can't see turnover growth slowing down at present - partly due to the business model with an increasing number of new distributors who fund their own activity and the success of the 'Utilities warehouse' concept which means that more customers are taking multiple services. 40% pbt growth would bring prospective PE to 14; even 30% implies 16 and a PEG factor of about 0.6.

Can any of those closer to the company give further insights? Tplus Guy?

Eric

The market is clearly looking for a slow-down

EWRobson,

yes I think a "slowdown" is inevitable now that there is so much competition for telecom services.

IMHO you cannot ignore the competition, and the Carphone Warehouse has hoovered up many customers in a short space of time, and whilst the distributor method has it's merits, it also has it's limitations, ie lack of saturation coverage due to selected customer targeting.

I believe they have taken the correct action in not allowing energy only customers, as margins are wafer thin and they make the bulk of their margin on telephony.

I am a telephony customer, and about to switch my energy.