It looks like Bridgewater is giving up on AT&T bets, and taking a rare opportunity to exit with at least a short-term profit on the books. Is that the right idea?
Well, AT&T would tell you that the game has changed now that the company owns satellite TV provider DirecTV. That deal opens up avenues to international growth, with an established market in Latin America, and a brand-new portfolio of technologies.
Personally, I think Ma Bell is fighting very hard to protect its existing American duopoly position, and the DirecTV opportunity will not be enough to make up for that crucial error. The wireless industry is changing around AT&T's ears, and the company is slow to adapt to the new reality. Instead, AT&T is doubling down on bandwidth restrictions for its landline broadband customers, with raised limits, but also tighter enforcement.
My spider sense is tingling. AT&T is choosing to go down a very dangerous path, risking the loyalty of its current customers, and losing untold millions of potential future subscribers. Unless the company changes gears (and soon!), this stock seems doomed to sink again during the next several years.
If AT&T sticks to its guns, and my assumptions are on the right track, Ray Dalio will come out looking like a genius for having Bridgewater run a fire sale on its AT&T holdings in early 2016.