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Blue Label Telecoms


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#41 Guest_PlatinumWealth.co.za_*

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Posted 01 March 2019 - 08:26 PM

Cell C starting to look attractive at this level. This might be the most undervalued gym on the JSE today, imo. 

(long term view, I am not a trader.)


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#42 andi222

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Posted 01 March 2019 - 02:36 PM

Seems like the support around 3,80 - 3,85 was successful. Let's see if we will test it again tomorrow.


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#43 andi222

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Posted 01 March 2019 - 01:23 PM

Support at 3,85. Doubt it will drop below that. I bought some at 3,9. Made some good bucks with this share in the last few months. Let's see where its heading.


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#44 Midas1

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Posted 01 March 2019 - 12:16 PM

Hi P, managed sell my mnd at 341..preset my sell..was very luck as it did a quick spike...
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#45 Polly

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Posted 01 March 2019 - 11:27 AM

back towards R4.00 if anyones interested


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#46 Bullhunter

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Posted 23 February 2019 - 08:18 AM

10 884 740 traded yesterday after the announcement of the Buffet investment


Edited by Bullhunter, 23 February 2019 - 08:19 AM.

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#47 nosh

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Posted 22 February 2019 - 03:56 PM

https://techcentral....o-cell-c/87678/


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#48 Polly

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Posted 21 February 2019 - 02:22 PM

seems like the R4.00 bus left the station overfull.....


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#49 Polly

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Posted 13 February 2019 - 08:04 PM

And this share continues to drop... Will it reach bottom at R4.00?

already reached where i dipped my toes in....about 10 days ago if memory serves me right


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#50 Lionelza1

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Posted 13 February 2019 - 07:57 PM

And this share continues to drop... Will it reach bottom at R4.00?
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#51 andi222

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Posted 05 November 2018 - 05:36 PM

Looks like the current share price is a good one as the company is repurchasing their own shares. 


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#52 Bullhunter

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Posted 27 October 2018 - 11:52 AM

Blue Label Telecoms chairman Larry Nestadt is on a spending spree. The businessman, whose achievements include co-founding Investec Bank, has acquired millions of rand worth of shares in the company in recent weeks as its stock price continued to plumb levels last seen a decade ago.

Blue Label, whose market value has fallen precipitously since it concluded the acquisition of a 45% stake in Cell C for R5.5-billion last year, said on Tuesday that Nestadt bought nearly R1-million of its shares on 19 and 22 October. The shares were acquired through the LM Nestadt Trust at an average of just below R5/share.

This comes on top of even more significant purchases by his trust in recent weeks.

Prior to those purchases, the LM Nestadt Trust acquired R5.5-million worth of shares at an average of R6.90 apiece.On 8 October, the chairman — who serves in a nonexecutive capacity — bought R1.1-million worth of shares at an average of R5.59/share. That was followed on 9 October by another R1.1-million purchase at R5.59/share and a further R546 000 at R5.46/share on 10 October.

In his chairman’s report in Blue Label’s annual report, released earlier this month, Nestadt said he and the board were “naturally concerned about the decline of the share price, which we believe is largely attributable to uncertainty with respect to Cell C’s turnaround strategy, current debt levels and requirements for further funding”.

“These concerns will be largely negated on the proviso that Cell C delivers on its business plan,” he wrote. “In this regard, it is our intention to monitor and assist on a diligent basis and to communicate the results thereof on a more detailed basis going forward.”

Share wipeout

“We trust that our improved Cell C disclosure will build greater confidence in support of our strategy to ensure positive cash-flow generation and in turn enhance the core business of Blue Label.”

Since the beginning of the year, Blue Label has shed two-thirds of its value, apparently largely on investor concern about Cell C’s prospects. Its market capitalisation of R4.7-billion is now less than the company paid for 45% of Cell C. In the past 12 months, the share price is down 70.5%. It’s performance over three years and five years isn’t much better — falling 57.2% and 42.9% respectively. It is now trading below its listing price in 2007.

In his chairman’s report, Nestadt said the past year was defined by Blue Label’s acquisitions of the stake in Cell C as well as 100% of 3G Mobile and 60% of Airvantage. In total, the company spent more than R7.5-billion on these deals, of which R3.9 billion was funded through the issuing of 272 million new shares.

“The acquisition of Cell C was both of a defensive nature and created an opportunity for earnings growth,” he said. “The acquisition was defensive in that it protects Blue Label from possible disintermediation by the mobile network operators, and earnings enhancing in that we can assist in turning the company around through continuing capital restructure and executing their strategic objectives.”“In considering the merits of these acquisitions, the board debated whether each company met our acquisition criteria, which include strategic fit, accretiveness to earnings, defensive positioning, and new products and channels”.

He said both the 3G and Airvantage acquisitions will be earnings accretive for Blue Label. “Not only will these acquisitions assist in the growth of Cell C, but they will also benefit the core Blue Label distribution business and add first-class skills and technologies to our group.”

The acquisitions added “valuable new skills and talent to the group, and we now intend to maximise these both vertically and horizontally to extract value for the business”.

“Bedding down processes, systems and platforms in conjunction with new technologies and skill sets will be the group’s priority in the 2019 financial year.”  — © 2018 NewsCentral Media


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#53 Lionelza1

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Posted 08 October 2018 - 04:54 PM

Market seems to be turning this one around?
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#54 Polly

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Posted 02 October 2018 - 08:14 AM

Did some detailed homework on this one last night.

 

At R4.00 i may dip my toes into it.


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#55 JK001

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Posted 01 October 2018 - 05:25 PM

seems like Market is turning this trend around? albeit day 1

 

Think it is just at a resistance level at this point, so up and down for a few weeks my guess.


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#56 Lionelza1

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Posted 01 October 2018 - 05:17 PM

seems like Market is turning this trend around? albeit day 1


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#57 Ms Jet

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Posted 01 October 2018 - 11:54 AM

Just in a straight line...more or less...but other than buying more npn have just been trying be patient re snh ...hard but have to wait
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#58 Rex

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Posted 01 October 2018 - 11:50 AM

Rex hows your trading this week..hope all good! Obviously blue is blue at mo...

 

Hey Jet,

 

everything going up except SNH and Naspers, I don't have Blue shares at the moment, a bit risky.

 

What about yours?


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#59 Spell Jammer

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Posted 01 October 2018 - 09:56 AM

Oh dear..

 

 

 

Strange move by key Cell C shareholder
Staff Writer30 September 20183 Comments
2018-05_COVER-IMAGE_CELL-C_v9.jpg
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A key Cell C shareholder, 3C Telecommunications, has raised eyebrows after it provided “blanket indemnity” to exiting directors.

This is according to a report in the City Press, which said the indemnity resolution was ratified by the 3C Telecommunications board last month.

After Blue Label’s recapitalisation deal of Cell C, 3C Telecommunications owned 30% of the mobile operator.

The 30% share of 3C Telecommunications is in turn held as 29.4% by the Employee Believe Trust, 45.6% by Oger Telecoms, and 25% by CellSaf.

CellSaf has been a vocal opponent of the deal, calling it “the most blatant attempt at corporate hijacking in recent history”.

The exiting directors which received indemnity from the 3C Telecommunications board were all from Oger Telecoms.

A Companies Act legal expert called the blanket indemnity “quite unusual”, especially when this indemnity was not in place when the directors joined the board.

Cell C spokesperson Candice Jones said it appears that “CellSaf, the empowerment partner of our former shareholders, Oger Telecom, are attempting to undermine the sustainability of Cell C”.

Concerns over Cell C sustainability

Blue Label, which is a 45% shareholder in Cell C following its recapitalisation deal, has been struggling with a falling share price.

S&P Global Ratings’ decision to downgrade the company’s credit rating from B- to CCC+ on liquidity concerns did not help the situation.

Since the Cell C deal was concluded, Blue Label’s share price fell from around R17.80 per share to the current R5.53 per share.

The chart below shows the Blue Label share price over the last year.

Blue-Label.jpg

Blue Label finds concerns unjustified

In a recent interview with TechCentral, Blue Label Telecoms co-CEO Brett Levy said investors are happy with the performance of the company’s core services.

However, he admitted there are many questions regarding Cell C’s performance and uncertainty on the operator’s future prospects.

He said he struggles to understand what people compare Cell C’s performance to.

“If someone says Cell C is not doing well – not doing well against what? We expected them to do better against what?” asked Levy.

He added that they have made “a lot of headways in a lot of different places” at Cell C, and that they are “on the right track and are really doing well”.

 


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#60 Ms Jet

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Posted 28 September 2018 - 06:31 PM

Rex hows your trading this week..hope all good! Obviously blue is blue at mo...
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