Telstra Limited - T3 Offer

Sorry for not posting for the last week but I have been eagerly awaiting the Telstra 3 sale and the details surrounding it.

In my simple opinion the offer is not worth taking. I have a few reasons:

1. The business will still be controlled by the government. Sure they won't have any shares but I think you will find the ACCC and the government will legislate heavily agsint Telstra in the future.

2. The business outlook is not good. They have ever increasing competitors coming into their market and they are running on outdated technologies.

3. They control the majority of market and this can only be taken away from them. Many people have a poor view of Telstras service and are rapidly leaving for new phone companies, new broadband companies, etc. Telstra might try to get into new markets but it may cost them a lot of cash to entice some customers back.

4. The offer has so many enticements it is like a shopping advertisement. I was surprised the kitchen knoves were not part of the package. If a company has to try this hard to sell shares and they can't use the fundamentals of the company then it is a clear warning to steer clear.

you will read lots about the telstra offer and analysts saying its a good or bad thing ... Just step back and think about it for a moment ... is the stock going to grow in the future ... and how is it going to do that ... If you can't make a case for it then don't worry investing no matter how cheap it is priced or how many incentives you are thrown.

Good Luck.