Telstra Flies High Down Under

But has the telecom company's IPO been too successful?

Australian housewife Kim Beale ignored analysts' cautions when she paid $1,568 for 1,200 shares in the initial offering of Australia's state-owned phone company, Telstra Corp. "I just had faith in the company," she says. Now, analysts are warning that after a runup of 42% since November, the shares are overpriced. Beale's response? She's holding on.

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