Trading just under £2 now, BT’s share price looks a bargain to me anywhere below £6.13
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BT’s (LSE: BT.A) share price has dipped 15% from its 25 July one-year traded high of £2.23.
This does not necessarily mean that it is cheap at this price. It could be that the fundamental business is simply worth less than it was before.
But it could mean that there is indeed a bargain to be had here. And the gain could be much bigger than the 15% loss the stock has made over the past two months.
This depends on the difference between a share’s price and its value. The former is whatever price the market will support at any point. The latter reflects the true worth of the underlying business.
The gap between the two elements in any stock is where big long-term profits are made,…
