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Testra Case Study

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Task 1: Company Share Code Price of shares on Monday 20th July Telstra TLS $6.405 Coca-Cola Amatil Ltd CCL $9.05 Oil Search OSH $7.09 Task 2: Telstra- Over the years Telstra has had an overall rising market with no dramatic drops. Since the start of this company the share prices have varied from $5 to what is now the highest price for shares to around $6.40. The reasons I have chosen to invest in this company are: It is a solid, reliable business performer. Telstra is Australia’s biggest telecommunications provider. Many Australians are familiar with the work of Telstra and their utilities can be found in most suburban houses. Stability in this company can be proven by the continuous uprising for the past four years. This rise will …show more content…

The benefit of Telstra investments is in the dividend yield, the earnings may not rise sharply but the company has proven to be a solid dividend payer. Telstra has a reasonably strong balance sheet and has the ability to pay decent dividends to shareholders. In reference to the ASX website the annual dividend yield is 4.72%. Over time has proven to have generally upward growth in share price. Telstra shares have shown itself to have a generally upward trend. While the share price is veering to its highest. Telstra could possibly continue on this rise. With this in mind one of Australia’s high profile stockbrokers has decided to upgrade the price target of $6.40 which has been met already to $7. With these evidence purchasing shares in Telstra could be a high risk that could be worth taking. Coca-Cola Amatil Ltd …show more content…

As all brokerage fees have been taken into consideration in the process of calculating the prices, the allocated budget has been closely recognized and followed. It is clear when looking at the different shares purchased for each company that there is a noticeable difference in the amount of shares purchased in each company. One obvious reason for this difference is the price of each company’s shares. National Australia Bank has a much higher buying price than both Telstra and Coca Cola. Without the guarantee of a definite rise in the companies markets, less shares were purchased in the companies that are more likely to drop their share price. This lessens the chance of potentially losing all of the money invested. Task 4

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