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TalkTalk shares are the UK Index standout loser this morning, down 10% after announcing a triple whammy of bad news. First up is an unsightly first-half net loss. Secondly, the lowering of FY guidance. And to top it off is a more than 50% cut to the interim dividend, with little or no explanation, resulting in an unwelcome 27% cut to full year shareholder income.
This is the last thing loyal shareholders will have wanted to hear, having held on for a near 50% rebound from May’s flirt with January lows. Especially when the shares had already turned over, down 14% from October’s day-for-day matching of 12-month highs, sitting just above the 200-day moving average. Was this one of those ignored answering machine messages they should have listened to?
Back trading levels last seen on the anniversary of the Brexit referendum, the shares are already well off their worst levels, having plumbed as low as -17% in early trading.
Bulls will be looking at profiting from any closing of the 20p gap to 190p. Bears will be itching to pounce on any loss in rebound momentum and any further weakness towards
Mike van Dulken, Head of Research, 15 Nov
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