https://seekingalpha.com/article/4373518-t-technical-breakdown-begun
7 replies (most recent on top)
After I was surplussed, I sold all of my AT&T stock, got rid of all of my AT&T services and moved my 401K and pension plan away from AT&T. For the first time in my 25 years at AT&T, I was not clear on where the company was heading.
Wrong—the “technical investor” has laid out the case that spells doom for AT&T over the long-term: 1. a mountain of unsustainable debt, which, along with the dividend, eats up all of T’s cash flow, leaving no cash for investment into the business; 2. competition that is intensifying; 3. “over confident management”; and, 4. a strategy of selling assets and downsizing, which only makes a small dent in the debt, and which is the opposite of growth.
Well, I don't doubt it one way or the other, but technical investors are whacky. I mean this guy's not saying that T is going to head south because of inept management or anything. He literally looks at the line and divines where it's going next based on what he thinks the line should look like. Even he calls it "reading tea leaves."
T-Mobile does not pay a dividend, and is funneling billions into company growth. Serious competitive problems for both AT&T and Verizon appear to be on the horizon. Already, most analysts rate T-Mobile’s 5G network as best-in-breed because of its size and availability nationally running circles around everyone else. If the newcomer can dramatically undercut both of the legacy Bell companies on price sustainably, AT&T’s stock quote will find itself in an uphill battle requiring more investment capital or a huge drop in cash flow to maintain consumer demand. At that point, the dividend will be slashed, dilutive equity issuance may become necessary and/or the company might be forced to break apart, with major operating segments divested.
Institutional investors finally have been largely selling AT&T stock
& AT&T is out of cash to continue Buybacks for fake growth.
that is Awesome.
keep pilling up debt!
The C-suite will be cashing out their shares before the price drop and dividend cut!! The Chairman will cash in his shares for $66 million along with the $200 million he has made during his tenure!!!
This article is 100% spot on. Several years ago I had done analysis on GE because my parents owned a substantial amount of their stock because of the dividend. At the time it was trading around $32 a share. I convinced them to get out around $28 and it has seen fallen to $6. All of the same signs that GE exhibited are the same or worse with AT&T. Don't say you weren't warned. If you are a shareholder, cut your losses and move on. If you are an employee, update your resume and get out. You will thank me later.