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Ray Merola  

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  • Accumulate AT&T Shares While No One Is Paying Attention [View article]
    Igneous

    Thanks for that. I really try, but do not always succeed, in offering relevant responses to any significant comments. I learn a lot from my readers; new perspectives, additional data, and diverse opinions. That's a unique attribute of S.A.

    Engaging commenters encourages ..... more comments!
    Feb 26, 2015. 03:10 PM | 4 Likes Like |Link to Comment
  • Accumulate AT&T Shares While No One Is Paying Attention [View article]
    Thanks for the kind words, nicholas. Maybe we will get another chance to pick up some shares on the cheap? I hope so.
    Feb 26, 2015. 08:30 AM | 2 Likes Like |Link to Comment
  • Accumulate AT&T Shares While No One Is Paying Attention [View article]
    Appreciate you stopping by to check it out, DAG. All the best.
    Feb 26, 2015. 08:29 AM | 1 Like Like |Link to Comment
  • Accumulate AT&T Shares While No One Is Paying Attention [View article]
    ashrock

    Thanks for reading and commenting.

    The PEG doesn't provide particularly meaningful results for a slow-grower like AT&T. AT&T's forward growth rate is only about 2%. Therefore, the PEG is ~7. A PEG above 2x is generally considered expensive.

    Thanks for pointing out the true length of the dividend increase string.
    Feb 26, 2015. 08:29 AM | Likes Like |Link to Comment
  • Accumulate AT&T Shares While No One Is Paying Attention [View article]
    whiteowl

    AT&T management is breaking the M.O. by cross-border expansion, so I give them some credit for that.

    We agree that otherwise the senior leadership may not be considered the most innovative in the industry.

    Consumers love to hate large telcos, cable providers, satellite companies or utilitities. My personal dislike is leveled at Comcast.
    Feb 26, 2015. 08:24 AM | 3 Likes Like |Link to Comment
  • Accumulate AT&T Shares While No One Is Paying Attention [View article]
    clinton77

    Your view is precisely the opportunity I envision as a probability: accelerated revenue growth as a result of movement into new markets and geographies. There should be corresponding EPS (and cash flow) improvement.

    I'd be satisfied with just a 15x operating P/E or a 10x P/CF multiple. Seems reasonable.
    Feb 25, 2015. 10:54 PM | 3 Likes Like |Link to Comment
  • Accumulate AT&T Shares While No One Is Paying Attention [View article]
    Dividends are a force of nature, BWwRD
    Feb 25, 2015. 10:52 PM | 1 Like Like |Link to Comment
  • Accumulate AT&T Shares While No One Is Paying Attention [View article]
    Appreciate the encouragement, Dividend Sleuth.
    Feb 25, 2015. 10:28 PM | Likes Like |Link to Comment
  • Caterpillar: Tax Avoidance Or Tax Evasion? [View article]
    Tom

    Always appreciate your well-reasoned articles. I may re-think Caterpillar stock, not binary "in or out of it," but perhaps a reason to write some short calls against part of the position. Just a bit of a hedge. Thank you for the insight.
    Feb 25, 2015. 08:12 PM | 3 Likes Like |Link to Comment
  • Accumulate AT&T Shares While No One Is Paying Attention [View article]
    whiteowl

    Indeed. However, AT&T has the size and heft to weather a storm or wear out competitors. The size and strength of the organization makes it unlikely they have to apologize to anyone.

    I agree that disruptive technology and delivery systems could force the AT&T business model to adjust. But adjust it will; one of the things I try never to forget is that good businesses don't just "take it." They morph and re-imagine in a sea change.

    Which brings me to a concern about AT&T: while I believe the management team is competent, I am not overly impressed with the general cadence of the organization. I recognize that the CEO and CFO are the faces of the business, but there is a tone at the top. I'm not convinced this is a AT&T strength, though I'm not in the camp that it's a material weakness.
    Feb 25, 2015. 08:09 PM | 3 Likes Like |Link to Comment
  • Accumulate AT&T Shares While No One Is Paying Attention [View article]
    I agree, wdchil

    AT&T is not without risks: both from the outside and from within (execution risk). However, the dividend can cover a lot of hanging around waiting for things to sort out.

    Part of my investment thesis is the dividend (and its slow annual advance) is unassailable.
    Feb 25, 2015. 06:25 PM | 1 Like Like |Link to Comment
  • Accumulate AT&T Shares While No One Is Paying Attention [View article]
    jsehr

    Your point about AT&T using DirecTV as a segway to cross-selling other services is very important.
    Feb 25, 2015. 06:23 PM | 2 Likes Like |Link to Comment
  • Accumulate AT&T Shares While No One Is Paying Attention [View article]
    Absolutely, David. Absolutely. A rock-solid dividend yield of 5.5% cannot be swept under the rug. It's critical to the total return narrative, especially when reinvested.
    Feb 25, 2015. 06:21 PM | 5 Likes Like |Link to Comment
  • Accumulate AT&T Shares While No One Is Paying Attention [View article]
    Another good point, 21811041

    Forwards EPS is on future earnings, and as such, is dependent upon the accuracy of the forecast.
    Feb 25, 2015. 06:19 PM | 1 Like Like |Link to Comment
  • Accumulate AT&T Shares While No One Is Paying Attention [View article]
    Yes, David, this is correct.

    I've found that S&P IQ generally parallels the company's "operating earnings" closely. However, there's either a different "interpretation," or a bust from time-to-time.

    This is why I always utilize the company's web site to verify operating earnings. It's my prerogative to accept or dispute how they record operating earnings, but I want the company's numbers as a baseline.
    Feb 25, 2015. 06:18 PM | 1 Like Like |Link to Comment
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