The future’s Orange as higher margins and takeovers create opportunities in telecoms


#1

Originally published at: http://whichinvestmenttrust.com/how-to-profit-from-telecom-mergers-and-higher-margins/
Mobile phone apps, video streaming, social media, on-demand television and faster networks are just some of the factors driving consumer demand for high-speed data within the telecommunications industry. Secular growth trends such as these present compelling investment opportunities for the Henderson Global Equity Income team. The team look for undervalued, unloved companies with underappreciated earnings…


#2

I used to own shares in Orange before it was taken over by the French equivalent of BT who liked it so much they changed their name to Orange and then merged the original business with T-Mobile to make the weirdly named EE.

Interesting to learn that the future might be orange again @benlofthouse.

i wonder how much of Orange you own in the trust though because it doesn’t make your top 10 according to the Henderson International Income website though SK telecom from South Korea is at number 6.


#3

Maybe it’s a newer holding and that’s why it’s not there. One of my criticisms of ITs is they don’t reveal as much about what they own and funds, though I understand it’s because they’re companies they’re restricted by stock exchange rules or something like that.

I thought Europe was becoming dear again, nice to know some areas are cheap. Telecoms seem to be going through a merger boom but I suppose Orange is a unlikely to be the acquired seeing that the French Gov blocks virtually every takeover (even Dailymotion FFS).

There must be a risk they’ll splurge shareholder funds on buying something in I dunno Spain, UK. Benelux rather than pay @benlofthouse ’ fat dividends.


#4

@mikemoore Henderson’s investment trusts disclose their entire portfolio on a quarterly basis with a 30 day lag. If you browse to their website they are all contained within the Literature Library by searching Portfolio Disclosure – the latest is 31 March 2015.


#5

It’s here: https://www.henderson.com/ukpi/documents-finder

It’s an Excel spreadsheet but I can’t see Orange as a holding. Maybe it relates to something else he manages.


#6

That Henderson spreadsheet data is from March @casper @mikemoore

He might have bought it since then.


#7

Ben Lofthouse has asked us to post the following to you:
“The position in Orange was initiated in October 2014. Orange remains in the trust’s top 20, but market fluctuations mean portfolio weights may vary.“

In fact even the March data confirms the stake in Orange as of that date was purchased for €1,696,045 and was valued at € 2,714,975.


#8

looks like our Mr Lofthouse has done remarkably well our of Orange already. I bet he wishes all his stock choices performed so well.