Stock and Don’t Look Back!
InvestorPlace
Chris Tyler
InvestorPlaceSeptember 7, 2017
Sometimes you have to know when it’s time to hang up or disconnect from a bad call. And in our opinion, AT&T Inc. (NYSE:T) is dialed into this type situation, and much to the chagrin of T stock investors.
After the epic 46 Billion DTV blunder, thousands of layoffs and the destruction of a good company, times up for finger pointing, and there are some prime suspects behind investors’ collective about-face in T stock. For one, there’s been growing investor weariness over debt tied to the pending Time Warner, Inc. (NYSE:TWX) deal and possibilities of a future dividend cut.
Over this period shares have also felt some pressure as AT&T entered the courtroom. The company is in litigation tied to a deceitful marketing lawsuit against its DirecTV unit and one which could cost the company $3.95 billion.
Is Randy your portfolio manager?
T performance is pretty dreary, as the S&P 500 index has rallied 4.5% over the same time span.
Time to change your portfolio manager, the shifts in the current market environment. Investors are seeking out precious metals and bonds as a store of value in uncertain and volatile times. Moreover, high yield credit spreads are widening, and global stock markets are coming under increasing selling pressure, signaling that investors aren’t comfortable owning anything for the sake of yield at current time.
TAT&T over the last ten years. After bottoming out during the financial crisis, the stock has run significantly higher. Two of the major reasons the stock traded higher over that time period are a low interest rate environment, and investors' desire to take risks in order to generate income.
My portfolio manager has recently told me that T is a great buy for the price. He recommended to buy more. Said you can't go wrong with the nearly 5% dividend payout and low price right now. I wouldn't be so pessimistic guys and gals
Technically, it’s never ideal to try and catch a falling knife. T stock had a flash of brilliance when it spiked 10% on earnings. Alas, it has since given most of it back. There is a chance that the bears will continue to overwhelm the bulls for now. So more downside is at play, did you guys know that there are Other Stocks out there to buy? T is loaded with DEBT
Randy is going to tie up this deal and cut and run with his golden parachute.
Soooooo funny, Seeking Alpha is running out of excuses, today they reported AT&T problem is a weak dollar, may be that's the problem with Apple, Amazon and Google?