Regarding Telia, I consider state ownership to be a good thing due to Telia’s role in my portfolio. Its role, after the Asian adventures, was to ‘forget and collect dividends a couple of times a year, and then sell sometime if I run out of money’.
For example, I don’t think Solidium’s role in Outokumpu, Kemira, or Metso is particularly good for small investors, but I understand the stabilizing role of state ownership in certain operations from the state’s perspective. Examples include the recent increase in ownership in Nokian Renkaat or the blocking of Metso’s acquisition attempt (Weir) a few years ago. So it’s not just about investing, as I understand it. Solidium does, of course, have some purely investment-driven holdings. I consider Nokia to be one of them.
Generally, activist investors mean good things for small investors. Metso, since it was mentioned, actually serves as a good example. Metso was split in 2014 from Metso → Metso + Valmet. Behind it all was none other than Mr. Gardell. If you look at the stock market performance of Metso and Valmet from 2014 onwards, it’s easy to conclude that the move was excellent for small investors.
Hopefully, something similar will develop with Telia.
Yes, I understand, and thank you for your response and for elaborating on your Telia strategy.
I agree about active investors. Of course, there are also those who only cause trouble, thinking only of their own benefit and taking over the company. Gardell has created added value for all owners. In that sense, the state is rarely such a wise active owner, and in my opinion, it should stay out (e.g., its interference in Finnair’s affairs back in the day) unless they can specifically help.
Regarding Telia, in 2000, I sold our adult Telia shares (or rather, Sonera shares) to help pay for a new apartment. My younger child’s Telia shares remained in the portfolio, which I consider my worst investment blunder. The child was 1.5 years old then, so they can’t be blamed for this I then gradually sold their Telia shares as well, and I think that was the right decision. The stock has been sluggish, hovering around the same level ever since.
Tell a dummy why Telia is found on the Helsinki Stock Exchange and on the neighbor’s side? What’s the difference between them, and which one should I buy?
Both countries have many Telia owners, hence the listing this way.
If you trade on the stock exchange in Sweden, then SEK, because the currency exchange cost for dividends is eliminated. This can be easily done in Nordnet, five clicks in the Portfolio section (if I remember correctly). Now is a good time to go there, because SEK has depreciated in recent weeks. You can get it cheaply!
It’s probably more of a historical remnant. When Telia and Sonera merged, the listing remained on both exchanges.
You get the same share of the company whether you buy from Helsinki or Stockholm, so it’s practically the same which one you buy from. The only differences might be in brokerage fees and currency exchange fees.
Now I finally made it here. In answer to your previous question, yes, share repurchases have been taken into account in the forecasts for 2019 and 2020.
Now that Telia Finland’s co-operation negotiations are over and 5G is progressing nicely, would it be time to buy Telia?
Based on the numbers, it’s significantly cheaper than Elisa.
Telia P/E 18.9 and Elisa 24.3
Telia P/B 2.0 and Elisa 7.6
Both are good dividend payers, of course, but Telia feels more attractive now.
I already sold my Elisa shares at 45, should I buy Telia now, hoping it will finally reach five?
I recall confirmation from competition authorities about the Bonnier deal should be coming in November. The own share repurchases have continued well, 58 million shares since the destruction of the previous ones (120 million shares)
Telia is a kind of safe-haven stock of its own, but there doesn’t seem to be a rush like at Elisa’s dock. In my own portfolio, I’ll “hold.” Additions still below 4€, if at all.
I also consider Telia a kind of safe haven and, at the same time, a boring stock whose price doesn’t fluctuate much and pays a good return for its industry. I always buy Telia when the price goes below four and if I happen to have money in my account. An excellent stock due to its low price fluctuation.
@Joni_Gronqvist How do you see this Bonnier deal on Telia’s behalf? Do you believe it will go through as is, or will there be demands from competition authorities? A decision should be coming soon. When will Bonnier’s Q3 report be out?
Telia probably sees something in Bonnier if they’re throwing 900 million on the table. I can’t say anything about their profitability, but maybe we’ll hear more about it in the coming days once the deal seems to go through.
I then gradually sold their Telia shares as well, and I think that was the right decision. The stock has been sluggish, hovering around the same level ever since.