NOW THE REAL WORK BEGINS
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.