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TalkTalk facing second Ofcom probe

TIP UPDATE: The maligned broadband and voice supplier jumps out of the frying pan and into the fire
November 24, 2010

Now: Phone and broadband supplier TalkTalk is facing its second Ofcom probe this year after receiving complaints from the public over mis-selling.

IC TIP: Sell at 155p

Last week the company revealed just 52,000 new customers had signed up to its phone and broadband services in the first half, worse than the most dismal predictions, so having its name dragged through the mud again is the last thing the company needs. The shares jumped last week on hopes that TalkTalk might improve the profitability of its 4.25m broadband and voice customers, but that will be easier said than done with Ofcom understood to have received more than 1,000 complaints this year.

What we said:

When: 12/11/10

Price: 133p

Performance to date: -10%

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