Watch out below...........From the Telus web site:
""TELUS believes that a capital structure where net debt to total capitalization is approximately 50% represents the most efficient use of capital. This is a long-term guideline and actual leverage does vary from this in the short term. """
Unfortunatly, the NTW (net tangible worth) of the Telus network is near zero. Even at a generous NTW of 10 cents on the dollar, that means debt to NTW is at least 400%. Debt is uncovered(exceeds market value of assets by at least 4 times) and interest coverage is down to 3.5 times.
With no profits projected until 2003 and uncovered dividends, the stock is technically worth zero.
P.S. Re-post of Teevee. Even more true today. Once this dog breaks below $10, where will it stop?