Monday, January 30, 2006

BT stock...think what the market will think 6 months from now.

OK so here's a UK stock i like...a lot. BT (British Telecom), currently
trading at 209p with market cap of £19bn.

BT is going to be bringing out technology in September this year which
will deliver movies over the internet via set-top boxes on TV's. This is
just about the hottest technology out there at the moment, its what
every company wants to be in and is ultimately the future of how
TV/Movies will be viewed at home. Google's share price has benefited
from their involvement in exactly this technology, but BT's huge retail
base (it basically has phone lines into every home in the UK) and the
difficulties for competitors to deliver the same service (due to not
having these connections into every household) means limited
competition. This technology is going to make the likes of Sky+ look
dated very quickly.

BT stock is not particularly far from multi-year lows of ~150p, get in
early before everyone starts talking of this technology. I have bought
£65 a tick (£65 per penny) of the Mar '06 future at 209p, which is
equivalent to £13,585 worth of stock (£65 * 209). Will probably increase
this over coming weeks, will keep you posted!


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