TELKOM (TKG) Shares
? Telkom SA SOC Limited, a leading South African information and communication technology (ITC) services provider, was founded in 1991. The company supplies a wide range of products and services for sale that cater for the complete telecommunications spectrum. These include fixed-line retail voice services, equipment rental and sales services, data services, mobile and online services, and data centre operations.
? Telkom SA SOC Limited comprises of three wholly owned subsidiaries, namely Business Connexion Communications,Swiftnet and Gyro.. The company operates through three divisions: Retail, Enterprise and Openserve. The company operates across the globe through its IT subsidiary, BCX. Gyro is responsible for managing Telkom’s masts and towers, as well as property development and management on behalf of the group.Today, the company is South Africa’s leading communication services provider and employs approximately 20 000 people across its operations.
? Today, the company’s portfolio comprises approximately 3.5 million telephone access lines and more than a million internet ports, serving residential, business and payphone customers. Telkom operates in more than 38 countries on the African continent.
? The company’s continuous solid performance on the financial market boosts investor confidence. For example, in 2018 it recorded revenue of R41.018 billion. Shareholders can therefore buy or sell company shares in the expectation of solid dividends and returns.
? Telkom SA SOC Limited trades on the Johannesburg Stock Exchange (JSE) under the stock symbol “TKG”. The Telkom shareprice has, however, underperformed on the JSE of late. Telkom SA SOC Limited’s major shareholders are the South African Government and the Government Employees Fund. Telkom SA SOC Limited is a semi-privatised, 39% state-owned enterprise.
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VISION & VALUES OF TELKOM
- In 2016 the company purchased leading IT outsourcing company Business Connexion. Along with higher mobile data revenue, equipment sales and fixed-line subscription, the company delivered a strong financial performance over this fiscal year by increasing its revenue by 13.9%, and growing its after-tax profit from R3 billion to R4 billion. This followed on a few years of hampered results because of more competition and lower consumer demand which resulted in a decreased employee headcount.
- The company’s increased focus on digitisation and improved mobile and internet offerings has also stimulated growth over the past few years. This new focus forms part of a comprehensive turnaround strategy in order to de-risk the mobile business, improve operational and capital efficiencies, and manage traditional revenue decline. Mobile data has become an effective profit turner and the company’s LTE service is experiencing off-the-chart growth. Active mobile subscribers have grown by 23% to 2.7 million, whilst the number of broadband subscribers has increased by 2.2% to just more than 1 million.
- Telkom’s increased focus on investment in the new Fibre internet service, LTE, Mobile, IT systems, maintenance and rehabilitation, has increased the company’s capital expenditure to R6.1 billion. The group plans an aggressive roll-out of its fibre network in the coming years, which is predicted to deliver a significant contribution to the company’s revenue. This adds value for shareholders planning to buy or sell company shares, as they can expect lucrative dividends and returns. Shareholders have been enjoying a 12.2% increase in headline earnings per share, and a 10% increase in dividends in 2016, for example.
MARKET PERFORMANCE OF TELKOM
- Telkom’s effective turnaround strategy and renewed business model appears to have strengthened the company after its shares have had a mediocre performance on the JSE in recent years. This transition phase, however, still seems to make investors reluctant to buy Telkom shares.
- The real proof of the pudding will be in the success of Telkom’s fibre rollout and continued investment in mobile offerings to negate the continuous decline in fixed-line revenues. Although the Telkom shareprice has been rather stagnant during the turnaround phase, shares could prove a lucrative buy in the long-term.
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Buy TELKOM stocks / shares – ? A Step by Step Guide how to Buy / Purchase TELKOM Stocks or Shares online.
Before buying any stock or share one has to consider a few factors.
STEP 1: PROPER RESEARCH IS ESSENTIAL
Upon deciding you want to buy TELKOM Stocks / Shares, it is critical for the serious investor to do proper research into the said company. Its values should align with those of the investor’s current portfolio. An investor needs to familiarise himself with the basics and history of the company, as well as its leadership and performance in the market. Its company reports should also be scrutinized.
Consultation with a brokerage firm can also assist in determining whether investing in a specific company will complement the investor’s current portfolio. The investment “risk ladder”, which identifies asset classes based on their relative riskiness, is another useful tool when determining which company’s stock / share is the best to buy.
STEP 2: CALCULATE THE AMOUNT OF INVESTMENT IN TELKOM STOCKS / SHARES
It is important for an investor to monitor his total investment in stock in order to keep his portfolio aligned to his investment strategy. The overall value of his holdings will change with the fluctuation in stock prices, which can throw his portfolio off balance. To determine the amount to invest, multiply the number of shares of each stock by its current market price to determine the total investment in that specific stock. For example, if you own 100 shares of a $5 stock, multiply 100 by $5 to get $500.
STEP 3: DECIDE ON THE STOCK / SHARE ORDER TYPE
Investors can choose from a market order, a limit order, a stop order (also referred to as a stop-loss order) or a buy/sell stop order. It is important to familiarise yourself with each type’s pros and cons before deciding which one will suit your current stock profile best. An investor should be guided in this choice by his investment objective.
STEP 4: OPEN A BROKERAGE ACCOUNT
A brokerage account – also known as taxable investment account – is similar to a retirement account, but more flexible. Where a retirement account has limitations on the amount of money that can be contributed annually, and restrictions on when funds can be withdrawn, a brokerage account is more flexible. The latter has no income or contribution limit and the investor can withdraw his money at any given time. This flexibility, together with its potential investment gains, makes a brokerage account more attractive to serious investors. Brokerage accounts are ideal for goals or savings that are further than five years away, but closer than retirement. It can also supplement an investor’s emergency savings.
STEP 5: COMMIT AND PURCHASE TELKOM STOCKS / SHARES
Lastly, commit to the stock. Pro Tip: Monitor the value of your stock to ensure you have a growing stock value and dividend pay-out. Regularly check the share price online to ensure your investment delivers a positive return on investment. You are now a proud owner of TELKOM stocks / shares.
5 Questions to ask yourself before purchasing any stocks or shares.
- Is it the best time to buy this stock / share?
- Should I buy TELKOM stocks / shares in the current economic climate?
- Can I afford to buy this stock / share?
- What is the forecast of the stock / share growth?
- What is the current price per earning ration on the stock / share?
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