dailyreckoning.com/att-out-of-business-2
So many mistakes not learned from
12 replies (most recent on top)
@1tip - exactly well said. selling buildings and laying off employees and selling them to another company isn't organic. it is all short term stuff that will probably hurt more in the long run.
" They are auctioning off properties, surplussing and furloughing employees (we are an expense on the ledger) and watching people retire, or leave voluntarily....they are cutting their expenses and long term investors like it, we never will. "
In the short term, this will help bring down the debt. However, there are only so many buildings you can sell and staff you can let go before it really starts to hurt the amount of business you can support. We're already seeing more work dumped on those who remain than we can possibly deal with. At some point, it simply won't get done. ( Within my group alone CRE is having to prioritize which regions come first ( and these change from month to month ) because they're selling buildings faster than we can remove the working infrastructure from them. )
So they'll quickly drop debt the first year or two, but then they'll run out of things to cut / sell and that's where the debt reduction will level off and investors will get a dose of reality about where T stands.
T
Price/Book 1.38
08/16/2019
T
Total Debt/Equity (Most Recent Quarter, Annualized) 103.73%
macrosaxis.com/invest/ratio/T—ProbabilityOfBankruptcy
Using a spreadsheet of financial and management metrics, it has been determined that Randall's AT&T has a 38% chance of going bankrupt in the future. If I were dumb enough to invest in this train wreck of a media conglomerate, I would be furious with this company's leadership.
Look at the spreadsheet of metrics for this company. If any of us had performance metrics that looked that bad, we would be walked out the door. Board of Directors, DO YOUR JOB and get rid of your incompetent CEO.
“....well said. T isn't just putting the $crews to craft. It's company wide, people, buildings, centers, technologies. The times they are a changin...”
And when domestic rehiring is needed it’ll be at much reduced wages/benefits.
@1nav....well said. T isn't just putting the $crews to craft. It's company wide, people, buildings, centers, technologies. The times they are a changin...
Lol not much has changed. Great article not really the tech I always thought they were.
@zsw has pretty much put it out there, you short T at your own risk....and here’s why. T/TW Media close the merger just before June 30, 2018 so debt begins at $181b. The quarterly report, on July 24th, 2019 show debt is down to $162b, down $19b and T has told Wall St. they will be below $150b by year end....the street has every reason to believe this.
This is where we need to separate financial fact from our emotional dislike for T’s tactics. They are auctioning off properties, surplussing and furloughing employees (we are an expense on the ledger) and watching people retire, or leave voluntarily....they are cutting their expenses and long term investors like it, we never will.
Worst CEO in the history of the world? I nominate Randall.
Worlds Most Indebted Company???
macrosaxis.com/invest/ratio/T—ProbabilityOfBankruptcy