Thread regarding AT&T layoffs

Randall says he's going to pay down $30B of debt.

https://www.dallasnews.com/business/att/2019/03/20/att-boss-randall-stephenson-much-success-failure-dependent-dc-decision-makers

I don't think he can say that if it isn't likely to happen. And then there is the Federal reserve. The big problem with AT&T's debt occurres if interest rates rise. But, they're not rising, and the borrow and spend administration is calling for the Fed to reduce interest rates.

So, I see AT&T buoyed a bit, because like AT&T, the federal government is running up debt, and higher interest rates will cause servicing the national debt to be more expensive. So, AT&T's ability to handle its debt is helped by the federal government's inability to do likewise. And AT&T is handling their debt if they reduce it by $30B as stated by Randall.

@1zig, you left yourself vulnerable to criticism, which I believe was intensional. Leaving your argument open ended was fair, and risky....but as you said, we will see.

Right now the “Cat” lives until proven otherwise. Most analysts, and common investors alike, rely on charts (in part) to make investment choices, but most investors should have multiple investment choices. Stock or mutual funds in growth, value, international & maybe real estate.

T is certainly not a growth stock, but if you are building your own private stock mutual fund, it wouldn’t be a bad choice. All that’s required is patience.

By Wall St. definitions a “dead cat bounce” is considered a “temporary” reversal from when a stock hits bottom to eventually continue its path further downward. T cratered at $26.80, on Dec 24th, has since blown through the 50, 100 & 200 day moving averages....the cat seems to be alive, but I’m only reading the charts....what do they know.

Having said that, we’ll see if ‘the cat’ comes off life support by the end of Aprils Quarterly Report, maybe that will settle a few things.

T's Price/Earnings ratio is about 11 (11 times earnings) and Amazon's is 90 times earnings. But let's use Verizon which is 15.5. The market isn't sensing T is a buy or the P/E would be higher. In the last 12 months V's stock price has been up about 22% while T trails at almost -12%.

T"s 2017 Net Profit was $29.9 billion. For '18 it was $19.9 billion - moving in the wrong direction.

It's going to take a lot for the stock to gain value with all the debt and it may be a long time to get there.

a s---er is born every minute - it's all about how you can bs the street and act like you have some type of plan and get people and brokerage houses to throw money at your stock. and like i or not, bs is what randy can do

Definitely not a long term buy and hold SWAN (sleep well at night) stock. This is a 'dead cat bounce'. Investors are putting money into the stock at the moment because it is dirt cheap with a high dividend.

An investor needs to ask him/herself "why is T so dirt cheap?'. Is it because investor's have no confidence in this company's management? Is it because AT&T is loaded up to it's eyeballs in debt? Is it because T is losing customers in core business units? Is it because Randall is throwing money around like a drunken sailor on shore leave for foolish acquisitions while letting the rest of the company starve?

If you feel the urge to invest in this stock, make sure you are very well diversified in other quality holdings to account for the risk of owning such a poorly managed company.

Dividends are the ONLY reason anyone invests in T stock.

Stock price is expected to rise somewhat anytime layoffs happen ( in any company ).

Where the fun will start ( read that: Stock price change ) is:

1) Folks will continue to bail out of DirecTV ( unless they make a radical change to it )

2) HBO will simply become another ShoTime / Cinemax / etc. once Game of Thrones is done

3) Company is pinning a lot of hope on 5G roll outs, but I wonder if it will perform as well as boasted ( I doubt it )

Only thing I see is dividends. What I don't like about our supposed free markets, is government rigging markets. I've been saying AT&T is a buy at $30. Why? Nothing to do with AT&T and everything to do with the Federal reserve rigging interest rates. If interest rates remain low, dividend paying stocks do better.

And I think the government has gotten themselves into a pickle with their deficits. If interest rates go higher, they're not going to be able to service the debt. They'll print money first, euphemistically called "quantitative easing". So, I like dividend payers.

@qyl, from experience I can say that T has taken my 401k matching and put it into T stock and I have no problem with that. Over many years the divs would buy more stock, high or low, increasing its worth as it went.

As for giving it away to Taxes, this is a given, it will happens to all of us. But after retirement, when your income bracket will most likely be lower, the taxes on that tax sheltered money would be lower as well.

Maybe recovered 19% but not a rally in terms of how the rest of the market performed during this time. Hard times still ahead for T ...good luck to all

I agree on the 3% of any one stock, and even if I let T put my 401K match into the stock, it would be a far cry of that percentage. And it’s also agreed that if T ever cut their dividend I would be the first one headed for the exit....T would tank.

But Randy, or the Johns or even the Board will never, and I mean never, let that happen. Cutting the dividend is like cutting the life blood, not to mention any confidence that would be lost in the stock. Any money you would hope to save on dividend payouts would be lost on a mass exodus on Wall Street. Mutual funds would be selling like crazy and yes, T stock would fall through the 20’s.

As for T propped up by the 6% dividend, sure and join the reality of so many stocks that trade in this market, Real Estate Trusts too. But I tend to agree with the OP on one important viewpoint, it does seem as if everyone is positioning ahead of the April Quarterly and the stock is going up along the way....it should be interesting.

Holding T for the dividend...why?

It's a dividend. If you're in for the long haul, you are giving away a portion of that in taxes so it isn't as high as you think.

Compare it to the S&P 500 Index for lets say the last 5 years. S&P has risen about 58% while T has declined by almost 10%. Just parking your money in the index nets you would have had 68% more that what you have now.

You would have had more diversification holding the index.

I sold my T when I got tired of it flat-lining.

T stock is being propped up by the 6% dividend. The dividend is being propped up by the layoffs,contracting, and offshoring of our jobs. If the 6% is ever cut, the stock price will drop to the low 20's. I own T stock for the dividend, if they cut the it, I will sell at once.

Not a single f__k was given..

Rule of thumb to abide by is no more than 3% of any single stock in your portfolio......including T.

I’m a T longtimer and let the company buy my stock with their company match to my 401K. It’s been on dollar cost avg. autopilot for many moons, much to my benefit. The dividends buy even more stock and I simply “let it ride” and turn my attention to other investments.

No regrets, I’ve made a self made annuity, and over time, will fetch the dividends to supplement my income when that day arrives.

My bad, didn’t check my spellcheck.....but I’m betting you were a Nay Sayer to the stock rising and sold at the bottom. Stings, huh!

Those who kept the stock, smile and sing a few praises for your patience.

OP you talk WAY too much.