Newbie
Posted 27 August 2018 - 10:38 AM
Hi guys... This share been dropping since over a yr now.... Why should I put money in it?
Okey.... according to me the Share is in a oversold territory with a RSI of 27. It has support at 6.86 and resistance at 9.30. Profits also looks okey. Furthermore the share is far below its bottom trend line. Consensus also has a strong buy signal.
Sage
Posted 27 August 2018 - 04:49 AM
Member
Posted 24 August 2018 - 12:02 PM
Get in at 6.85 - 7.40. Looking at results and graph analysis it can bounce back to 8.30 or even R9.00. Very optimistic it may get to R9.50
might take a while for the bounce to happen
Newbie
Posted 23 August 2018 - 07:13 PM
Get in at 6.85 - 7.40. Looking at results and graph analysis it can bounce back to 8.30 or even R9.00. Very optimistic it may get to R9.50
Member
Posted 23 August 2018 - 03:44 AM
OK, the 3 member board is pretty irritated with the investor sentiment and/or stupidity. Do yourself a favor and look at the shareholder webcast on BLU's website. skip slides to where Brett explains the CellC strategy and the ultimate convergence. It is surprising that the bean counters don't get the visionary disruption that BLU CellC combination is creating.
I am in for the longer run, so to get BLU at a discount is awesome.
Combined with the buyback .... hmm
Advanced Member
Posted 22 August 2018 - 08:41 PM
OK, the 3 member board is pretty irritated with the investor sentiment and/or stupidity. Do yourself a favor and look at the shareholder webcast on BLU's website. skip slides to where Brett explains the CellC strategy and the ultimate convergence. It is surprising that the bean counters don't get the visionary disruption that BLU CellC combination is creating.
I am in for the longer run, so to get BLU at a discount is awesome.
Combined with the buyback .... hmm
Master
Posted 22 August 2018 - 06:58 PM
Blue Label's investment in Cell C is worth R9.00 per share.
Based on today's HEPS result, fair value is R11.54
Member
Posted 22 August 2018 - 03:09 PM
Polly what is your take on a safe entry point on this share?
Member
Posted 22 August 2018 - 03:04 PM
Market not liking the no dividend and share buy back, bit of a kick in the teeth for shareholders.
This might take a while before they get back up imo, what do you guys think?
Member
Posted 22 August 2018 - 02:13 PM
Market not liking the no dividend and share buy back, bit of a kick in the teeth for shareholders.
Member
Posted 22 August 2018 - 12:10 PM
Results for the year ended 31 May 2018
Highlights
- Increase in revenue to R26.8 billion*
- Increase in EBITDA of 4% to R1.34 billion
- Increase in core headline earnings per share of 4% to R120.61 cents
- Increase in gross profit of 7% to R2.28 billion
- Increase in core headline earnings of 30% to R1.03 billion
- Increase in cash generated from operating activities to R3.2 billion
* On inclusion of the gross amount generated on "PINless top-ups", the effective increase equated to 9%.
They are down by quite a bit today though
Member
Posted 22 August 2018 - 08:20 AM
Results for the year ended 31 May 2018
Highlights
- Increase in revenue to R26.8 billion*
- Increase in EBITDA of 4% to R1.34 billion
- Increase in core headline earnings per share of 4% to R120.61 cents
- Increase in gross profit of 7% to R2.28 billion
- Increase in core headline earnings of 30% to R1.03 billion
- Increase in cash generated from operating activities to R3.2 billion
* On inclusion of the gross amount generated on "PINless top-ups", the effective increase equated to 9%.
Advanced Member
Posted 21 August 2018 - 09:54 PM
knee jurk response today was excellent opportunity, thanks:
CellC Debt reduced significantly, network investment to grow business awesome, excited about that 300% plus fiber growth. CellC remains disruptive to the status quo. Except for Steinhoff, BLU probably the lowest investable P/E on JSE.
Hope tomorrow's financial statements will shift the pivot. Great thing about BLU is it does not require door-to-door sales, it is ubiquitous and BLU managed to monopolize prepaid airtime.
Master
Posted 02 August 2018 - 09:30 AM
Bull hunter..hi when do you foresee share increasing from 9.15? Thanks
Who knows, but the ICASA issues surrounding the Cell C acquisition and the battle with Cell C's BEE partners must be resolved
Master
Posted 02 August 2018 - 08:04 AM
Master
Posted 02 August 2018 - 07:32 AM
A new, exclusive partnership between Spar and South African ticketing company Ticketpro will see customer kiosks being rolled out in Spar stores nationwide.
30/07/2018
Through utilising technology developed by Blue Label Telecoms, Ticketpro streamlines the ticketing, hospitality and access control for a range of events across the country, offering customised ticketing solutions to a wide variety of events including concerts (international and local), expos, lifestyle, theatre and sporting events. Ticketpro is also a ticketing partner for PSL Soccer league and teams, Cricket South Africa, Blue Bulls rugby, The Cell C Sharks, The Kings, Ticketpro Dome events, SA Open Golf tournament, Sun International and Tsogo Sun events.
As part of its new kiosk offering, the company will also offer commuter bus ticket sales in Spars (Putco) and long and short haul bus tickets for City to City, Translux, Intercape and Eldos, with more services launching soon.
Master
Posted 02 August 2018 - 07:23 AM
Blue Label's investment in Cell C is worth R9.00 per share.
In other words, at the current share price, you are getting the pre-paid business which the Levy brothers built up over years, for free.
Master
Posted 01 August 2018 - 01:56 PM
31 July 2018
Cell C could be the big winner from new mobile operator Rain’s decision to suspend sales of fixed-LTE products with effect from 1 November 2018.
TechCentral broke the news on Monday that Rain will “temporarily suspend” the sale of fixed-wireless 4G/LTE products through its partner Internet service providers to “better manage capacity” on its network, which has come under heavy load. The company will instead focus on its mobile offerings, which it sells directly to consumers through its website. Existing fixed-LTE customers will not be affected by the decision.
Rain sells fixed LTE to Internet service providers through its partner Internet Solutions. Some ISPs have expressed disappointment in Rain’s decision but said that Cell C offers a compelling alternative.
The fixed broadband market is growing, and we will continue to meet reseller and customer demand with the Cell C fixed-LTE services at competitive rates
Murray Steyn, executive head of wholesale at Internet Solutions, said the company will work closely with Rain to ensure existing fixed-LTE clients continue to receive their expected services.
“The fixed broadband market is growing, and we will continue to meet reseller and customer demand with the Cell C fixed-LTE services at competitive rates,” Steyn said. “Currently available packages range between 20GB and 200GB/month and we regularly review these to meet varying customer demands.”
He described Rain’s decision as “not ideal”. However, Internet Solutions has had “numerous engagements with Rain and understands the rationale of their decision”.
“Our primary concern is continuing to provide fixed-LTE services to our resellers and their customers, and we will do so with Cell C.”
MWeb expressed a similar view. The company’s GM for product, sales and marketing, Carolyn Holgate, said the ISP remains “well positioned with Cell C LTE, which has great coverage and is increasingly meeting our customers’ requirements”.
“MWeb’s main concern is for our existing Rain LTE customers,” she said. “However, we have been given assurances their services will remain.”
Vox CEO Jacques du Toit said he supports Rain in its efforts “in getting back into sales mode in the next few months”.
“The reality is that this kind of technology is bound to have a huge uptake from customers and, as such, it has enjoyed extraordinary success.”
Blue Labels investment in Cell C is worth R9.00 per share.
Master
Posted 30 July 2018 - 11:00 AM
With less than a month to go before the company releases its year-end results, Blue Label’s already battered shares have come in for a fresh bruising, taking this year’s losses to date to 44% and its share price to a three-year low.Blue Label’s stock market woes are evidently worrying backers; Levy acknowledges "many" shareholders are calling the company, which specialises in the distribution of anything pre-paid, including airtime and electricity, to ask what is going on.
"There’s a rumour mill that somehow generates its own momentum and … a lot of the rumours … are so absurd that it’s bizarre," he says. Among the chatter: that Blue Label is one of short seller Viceroy’s next targets, though given Viceroy’s own reputational issues that fear may well be overdone.
Cell C, however, is likely the big issue. In May, Blue Label hosted a conference call to respond to the 10 most commonly asked questions about its investment in Cell C, including the structure of Cell C’s R8.2bn net debt, part of which is now housed "off-balance-sheet" — which for some is a key red flag.
In the call, acting CFO Robert Pasley said: "Questions may have arisen because of a misunderstanding of the scale of the finance costs below the earnings before interest, tax, depreciation and amortisation [ebitda] line, which may imply that we have more debt on the balance sheet" than expected after the company’s recapitalisation.
Among the concerns is that R1.8bn of debt related to the finance of mobile handsets is housed off-balance-sheet. The reason, said Pasley, is that Blue Label regards it as a "subscriber liability" — in other words, subscribers would ultimately settle the debt.
Cell C also has three debt instruments tied up in special purpose vehicles, but Blue Label is adamant that these are "completely" ring-fenced and will have no recourse "whatsoever" to Blue Label.
It says Cell C is also on track to pay back at the end of the month R740m it drew down as part of a R1.3bn loan.
Levy makes the point that when Blue Label concluded the Cell C purchase alongside Net1, which took a 15% share in the mobile operator, its shares rallied to just below R19.While there is talk in the market that Blue Label might have to issue more equity to support Cell C, Levy denies this. "There are no plans to issue more paper," he says.
But Mergence portfolio manager Peter Takaendesa is concerned that Cell C is going to continue to need funding, "which is not a business model that Blue Label is used to", he says.
"They might have to provide [further] loans and Cell C’s gearing remains quite a risk for a third operator in the market," particularly when that market is all but stagnant.
Arguing that Blue Label’s small-cap status is also a factor in the sell-off of its shares, Takaendesa believes it will be difficult "to publish numbers that shoot the lights out".
Still, Levy says the company "looks forward" to presenting its results. "We believe the business is where it should be," he says.
White says: "We’ve been expecting Cell C to increase revenue and ebitda and we are still sticking with what we have said before: nothing has changed."
In the May conference call, Cell C reiterated that its ebitda margins would hit the "low-to mid-30% level" towards the end of its present business plan in 2021.
Boutique asset manager Tantalum Capital has a similarly upbeat view. In a research report in April it said: "Assuming high single-digit revenue growth and some cost savings from network sharing, capital investment in leased sites and renegotiation of onerous contracts, we envisage R5.3bn (28.2% margin) of ebitda in 2019."
That’s still below Vodacom and MTN but Tantalum believes that if Blue Label hits its earnings target and there is a drop in Cell C’s gearing, the share could gain by as much as R6.
"We have bought into Blue Label believing that it has significant upside and has less to fear in terms of regulatory interference in comparison with its larger peers.
"With improving disclosure of Cell C’s financial statements and further evidence of operational traction, we believe [it] will rerate handsomely in time."
Edited by Bullhunter, 30 July 2018 - 11:00 AM.
