Tuesday, October 16, 2012

DAX: Dt. Telekom

It is time to look again to Old Germany. Every morning the first look in the newspapers: how did the Germans do? The DAX is doing quite well in the last time. The growth is bigger than it is in US. Nevertheless some stocks are quite interesting.

There is for example  Dt. Telekom. The stock is not looking good at all. The best DAX paper to go short.Sell signal SAR was created on October 4th. I do not know how long this trend will continue but there are no indicators for a trend change soon. ADX is 15, MACD is going to the south with now indication to turn around and -DI is far above +DI. Not a good paper. And on top of that the line hits the 200 days line from the north. The question is will the line work as a resistance or is the stock going through and the way is open to 8,4 Euros? That would mean the paper is back into the negative trend started in September 2011. The bubble which started in June would be over.  But I never understood why the increase happened in the fist place. There is no sex in the paper.

I have the honor to be a customer of T-Mobile in US, the US company of Dt. Telekom, and my experience is simply bad. While the quality of the net is very good, the customer service site is far off. Every months new employees in the local shop and hardly over 21 years old. And did you ever call their call center? Experience from hell. Last time I put down the receiver. They did have a party in the back ground and I could not understand the agent. The funny thing is in Germany they ask why customers are leaving T-Mobile US. Ask you customers and they will tell you why.

These are indicators of bad management. Maybe it is a German who runs the company with the typical German way of management: Management by PowerPoint slides. Well, that was bad....

But thinking about these experience I ask myself  how could such a  company create a positive momentum and the price for the stock would increase. I have my doubts.

As always, just my 5 cents

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