Updated: May 23, 2016 — 7:15 AM EDT
Re the seven-week strike against Verizon by nearly 40,000 CWA and IBEW union members: After talking to company and union leaders, "we continue to expect the strike to end relatively soon," but it will still reduce this year's earnings for Verizon by around $200M, or a nickel a share, writes New York-based telecom analyst Barry Sine, in a report to clients of Philadelphia-based Drexel, Hamilton & Co.
I agree with IXC educated guess.
The same monkey predicted a quick amicable resolution on April 26.
http://www.philly.com/philly/blogs/inq-phillydeals/Verizon-analyst-sees-amicable-strike-deal-FiOS-expansion-mobile-media-jump.html?mobi=true
An educated guess would be that the same folks who are making moves which may result in the stock price being driven down are the same ones buying as it drops. Since they control the news and the market itself, they'll then stop buying before an announcement comes out, only to sell as the price rises back up again. Its a strategy used often and to massive effect.
Therefore, I suspect many in control actually want to stock price to drop during the strike, as it will pay off when a resolution of any type is reached. That resolution could be either a union agreement (which indicates stability) or a statement that the company has gone to a contracted workforce (which indicates savings)....either way the stock will go up when things are resolved.
When stock holders and wall street see a drop and not a gain it's bad news. Stock price and ratings going down too not to mention loss of customers.
Verizon makes 18 Billion per year as a company.
For a long term strategic direction 200Mill is nothing.
(Also, WF was thinking in the line of 800 Mil per the year)