NOW THE REAL WORK BE­GINS

Finweek English Edition - - SIMON SAYS -

We got good re­sults from Telkom*; even bet­ter, the paras­tatal paid out its first div­i­dend in four years. Then it fol­lowed up with an an­nounce­ment of a staff re­trench­ment pro­gramme. With gov­ern­ment as the ma­jor­ity share­holder, that will not be easy to im­ple­ment. But all said, the re­sults did noth­ing to the share price as im­proved re­sults were al­ready priced in with the stock up over 200% in the last cou­ple of years and, even with re­cent share price weak­ness, the stock is over 40% up in the last year. The turn­around ap­pears to be well on track and man­age­ment seems to have a good grasp of the var­i­ous op­er­a­tional units. How­ever, the first stages of a turn­around are rel­a­tively eas­ier than the re­ally hard work in­volved in the f inal stages of any turn­around. Man­age­ment seems well up to the task but, as men­tioned, the share price has pretty much al­ready priced this all in. Now it is time for Telkom to de­liver.

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