Digital disruption is creating all types of havoc across industries and now dormant areas of the market such as tobacco, telecommunications and utilities are starting to feel the pinch. Long seen as sectors with predictable cash flow generation protected by either regulation or dominant market positions, a number of these companies have unsustainability leveraged up their balance sheets to fund inorganic expansion. Now a new breed of agile companies are disrupting previously protected business models and pricing structures, meaning we can no longer rely on these companies to provide sustainable dividends and capital appreciation.
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