Thread regarding AT&T layoffs

Malevolent Randy vs the Stupid Public

So, the news "on the street" is that AT&T has "good cash flow" and "always pays a dividend". Okay. If you want to believe it.

Do this for me, though. Look through the publicly posted financials. Back out the debt. Go drop some numbers into a spreadsheet in your spare time. Here's what you're going to find: Randy & his Johns have been borrowing to fluff the books quarter by quarter. The dividends and yes, even the "good cash flow" have been subsidized by cheap borrowing of MASSIVE non-sustainable DEBT. Back in the debt in that spreadsheet you're nursing. Do the math on organic growth, cash flow and earnings. Not pretty, is it?

Here's the rub: it goes beyond Randy. Even the Board is complicit in this nonsense. The reason they're cutting so deep is to avoid having the truth come home to roost. Do the math for yourself.

Why is this relevant on this board? Because, if AT&T had installed good, quality, fiscally-responsible leaders, instead of Randy & the Johns, the normal fall of segment-based revenues could have been offset by normal attrition, versus the deep cuts that the failed "leadership" have now caused.

Do the math. Don't believe any of the analysts.

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| 1297 views | | 7 replies (last June 19, 2019) | Reply
Post ID: @OP+ZCeIMGU

7 replies (most recent on top)

You forgot to show your work. F-

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Post ID: @1rjg+ZCeIMGU

I assume you are shorting the stock. Good luck with that.

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Post ID: @ask+ZCeIMGU

Warren Buffet was a major holder of Direct TV stock. Then our good friend Randall came along and offered Mr. Buffet and all the shareholders of DTV a huge premium, paid in AT&T stock, over the market value of their DTV shares (Randy just loves to over pay for his acquisitions after all).

Of course, Warren gladly took Randall's money. But then, the first thing he did the next day was dump all his newly acquired AT&T stock.

If the greatest investor in the history of capitalism won't touch this stock, is it really a wise investment? Do you want to be on the side of the smart money or do you want to follow the dumb money crowing about their high dividend yield? Large capitalization companies with a dividend this high are usually a red flag.

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Post ID: @cgq+ZCeIMGU

I see all the id--t Millennial generation interacting more and more with smartphones than lovers, parents, friends, children or co-workers, the have become the selfie generation: with elevated self-esteem, Facebook clowns, where narcissism thrives

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Post ID: @aqn+ZCeIMGU

The way I see it, AT&T was about to go bankrupt when SWBT/ SBC bought AT&T for the AT&T name recognition. SBC has adopted the bad habits of AT&T by outsourcing it’s business to people who don’t have a stake or loyalty in making the company a success. RS, his minions & board of directors are going to pay themselves big bonuses just before the company tanks leaving it’s investors, stockholders, retirees and active employees holding the empty bag. How sad.

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Post ID: @twx+ZCeIMGU

The debt is going to become more sustainable if the Federal reserve lowers interest rates as Trump wants them to do. That should take the pressure off of AT&T as their debt declines. Other corporations are going to borrow to purchase back their own stock.

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Post ID: @cij+ZCeIMGU

Of course, "Do the Math," why didn’t anyone else think of that! But you really don’t go into any detail or site any articles to support your conclusions. "Don’t believe any of the analysts" and why would we? Let’s distrust them all!

In all sincerity, if you have supporting articles I, for one, would like to see them......but if it’s only the one, don’t bother because I will find five that dispute that theory.

As for the borrowing aspect, of course they borrow! Every corporation does, they are called Bonds and I purchase those Bonds, through Fidelity (our parent broker) and ladder them yearly....many of us do! No mystery here, I buy X amount (Lend is a better word) at a stated Maturity and % rate. In return AT&T pays me dividends for borrowing money from ME and promises to pay until the Maturity come due.

And yes, sometimes they might borrow from named brand banks. The more we pay down our debt, the better the rate. We have a ton of bonds, with various maturities and rates....pick up a Wall Street Journal and be amazed.

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Post ID: @jeo+ZCeIMGU

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