Quote:
Originally Posted by FireFly
It's odd because the price of Telus shares went up by about $2 in the last two days...
Frick. I hope this doesn't hurt too much... might not since Telus is not yet a trust, and is still labelled the #1 wireless company in North America. *crosses fingers*
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In the two days after the announcement it was up $9.00 bucks, you can expect to see that gone. What will make a difference after that is the over-reaction. Because there is no change in their, hmmm.. how should I put this, the core business is essentially the same, it's the business structure that will no longer change.
I think events that change the business (loss of customers, failure of a product, poor sales, decrease in growth), that causes an overkill because there is a change in confidence, view of failure, which turns from a correction into a totally overselling reaction especailly if it catches a lot of people off guard. Stop losses get hit and the loss just keeps tallying.
I can't see the overselling going on in this case because the business hasn't changed, that said a lot of people that bought in recently are going to get a licking... There is no reason for it to go below $55.00 and it shouldn't.
Sweet, let's see if I'm out to lunch on this one
looking forward to the market open