39% Annualized Return And AT&T
Chris DeMuth Jr. • 175 Comments
Chris DeMuth Jr. • 175 Comments
Going Long Leap Wireless: More Than A Leap Of Faith
Helix Investment Research
Helix Investment Research
Fri, Jul. 1, 7:30 AM
- June monthly performance was: +1.86%
- 52-week performance vs. the S&P 500 is: +4%
- $0.07 in dividends were paid in June
- Top 10 Holdings as of 3/31/2016: General Mills Inc (GIS): 3.41805%, AT&T Inc (T): 3.01284%, Coca-Cola Co (KO): 2.95236%, Campbell Soup Co (CPB): 2.78964%, Exelon Corp (EXC): 2.28957%, The Hartford Financial Services Group Inc (HIG): 2.24568%, Heineken NV (OTCQX:HINKF): 2.15959%, The Kraft Heinz Co (KHC): 1.97668%, Suncor Energy Inc (SU): 1.86666%, PPL Corp (PPL): 1.86557%
Wed, Jun. 29, 7:45 PM
- The FCC has set the cost of the spectrum being sold in the broadcast spectrum incentive auction at a whopping $86.4B -- a sum that wireless carriers may balk at.
- That means that the FCC might have to sell less spectrum than had been expected, or use multiple rounds to settle bidding by broadcasters.
- The current stage is the reverse auction, where broadcasters bid low to give up their low-band airwaves to the FCC -- and participation has been strong from broadcasters who might have "significantly inflated expectations," says analyst Roger Entner. That's to be followed by a forward auction round of bidding by carriers.
- A second round of reverse auction with the broadcasters may be needed, which could slow the entire process into 2017.
- Spectrum players: VZ, T, TMUS, S, DISH, SBGI, EVC, CMCSA, CHTR, NXST, CBS, MEG
Wed, Jun. 29, 12:30 PM| Wed, Jun. 29, 12:30 PM | 11 Comments
Tue, Jun. 28, 4:05 PM
- AT&T (NYSE:T) has quickly closed on its acquisition of Quickplay Media, the enabler of streaming video and "TV Everywhere" services for clients.
- The telecom giant had agreed last month to acquire Quickplay -- an existing partner that supported AT&T's authenticated viewing on U-verse, and is working on streaming offerings from AT&T-owned DirecTV (DirecTV Now, DirecTV Mobile and DirecTV Preview).
- Quickplay will continue to support and expand its customer base, though, AT&T said, and all employees and contractors will be retained.
Mon, Jun. 27, 11:16 AM
- The outperformance of low-P/E stocks that marked H1 is behind us, says RBC's Jonathan Golub, and it's time for the "Stable Growers" to re-asset leadership. He cautions about putting money to work too quickly though, noting the pullback so far has been limited.
- His list of Stable Growers (page 1, page 2): CHD, CL, CVS, K, MO, PEP, PG, PM, BCR, BDX, DGX, DVA, HSIC, JNJ, LH, MDT, SYK, TMO, UNH, ZBH, AFL, AON, MMC, TMK, CTAS, DHR, HON, ITW, LMT, MMM, NLSN, RSG, RTN, UPS, VRSK, WM, XYL, CMCSA, MCD, OMC, ADP, APH, EMC, MA, T, VZ, ECL, PX
Fri, Jun. 24, 3:47 PM
- AT&T (T -0.5%) is holding up far better than most today, despite a downgrade from BRG and price target cuts from Jefferies and Pivotal Research.
- BRG's moving on valuation of a "fundamentally healthy" company, without much upside ahead. The firm cut to Neutral from Buy, maintaining its $41 price target (vs. today's price of $41.62).
- Meanwhile, Jefferies has reiterated its Buy rating but lowered its target to $53 from $60 (implying 27% upside).
- Pivotal today (also Buy) cut its target to $41 from $50.
- Earlier, the company declared its newest $0.48 dividend (with 4.6% forward yield).
Fri, Jun. 24, 11:49 AM
Thu, Jun. 23, 12:52 PM
- Pay TV providers are on Capitol Hill today in a hearing focusing fire on the industry's gutter-bound reputation for customer service and billing problems.
- The hearing accompanies the arrival of a pair of Senate reports addressing the issue and focusing heavily on Charter Communications (NASDAQ:CHTR) and Time Warner Cable (now the same company) and their approach to customer overcharges.
- One report from Sen. Claire McCaskill noted TWC and Charter made "no effort" to trace equipment overcharges unless customers pressed for it, and that the two overbilled customers $639,948 nationwide just between January and April of this year. Charter acknowledged overbilling customers by at least $442,691/month.
- Comcast (NASDAQ:CMCSA), DirecTV (NYSE:T) and Dish (NASDAQ:DISH) fared better at addressing or preventing overcharges, that report says. A second McCaskill report faulted customers service and billing issues overall.
- In today's hearing, former TWC exec John Keib said the company had been undercharging more than it had been overcharging. Meanwhile, Comcast's (CMCSA) Tom Karinshak (senior VP for customer service) said in the hearing that the industry hasn't always made customer service a priority and "I am sorry for that."
Tue, Jun. 14, 2:21 PM
- Following second-round bids, AT&T (T +0.3%), Verizon (VZ +0.4%), P-E firm TPG, and a group led by Quicken Loans founder/Cleveland Cavaliers owner Dan Gilbert remain in the running to buy Yahoo's (YHOO +2.2%) core assets, a source tells Fortune's Dan Primack. A joint bid from P-E firms Bain and Vista Equity reportedly didn't make the cut.
- "Price talk" is said to be in the $4B-$5B range. "I think AT&T is just trying to drive the price up on Verizon," Primack also reports hearing from a source.
- Bloomberg reported last week AT&T and Gilbert each bid ~$5B for Yahoo's core business, patents, and real estate. Re/code reported Verizon bid ~$3B-$3.5B for just the core business.
- Yahoo is trading higher, but that's the result of Alibaba (up 3.1%) rallying after providing a strong sales forecast.
Tue, Jun. 14, 10:46 AM
- 16 months after the FCC voted 3-2 to impose tough net neutrality rules through its Open Internet order, a federal appeals court has upheld the ruling.The lawsuit challenged the FCC's ability to classify Internet providers as common carriers under Title II regulations, as well as to govern wired and wireless services via the same rules.
- The FCC's rules prohibit the blocking of legal content, the throttling of legal traffic based on content type, and the creation of "fast lanes" for certain types of content. The rules exclude services such as T-Mobile's BingeOn and Verizon's Go90, which don't count against a user's mobile data cap.
- Shares of major U.S. ISPs haven't moved much (if at all) in response to the ruling.
- The full ruling (.pdf)
- U.S. ISPs/carriers: VZ, T, CMCSA, CVC, S, TMUS, WIN, CTL, FTR
Fri, Jun. 10, 4:08 PM
- Bloomberg reports AT&T (T +0.6%) and a group led by Quicken Loans founder/Cleveland Cavaliers owner Dan Gilbert (backed by Warren Buffett) each submitted a ~$5B second-round bid for Yahoo's (YHOO -1.4%) core business, patents, and real estate.
- Separately, a day after CNBC reported Verizon (VZ +1.4%) made a ~$3.5B second-round bid, Re/code reports Big Red made an offer valued between $3B and $3.5B, depending on "how employee compensation commitments are treated." However, Verizon's bid excludes Yahoo's patents and real estate.
- When adjusted for the absence of patents/real estate, Verizon's bid might be competitive with the others. Re/code observes Yahoo respectively values its patents and real estate at $3B and $1B, while adding others assign much lower values to each (~$1B for the patents).
- Yahoo slipped today amid a 2.1% drop for Alibaba, and a 1.3% drop for the Nasdaq.
Fri, Jun. 10, 12:30 PM
Fri, Jun. 3, 8:44 PM
- A retransmission dispute has cost DirecTV (NYSE:T) three TV stations in North Dakota -- ABC affiliates, just as the NBA Finals were beginning.
- The stations are owned by Forum Communications. Original retrans agreements expired March 31, and extensions expired June 1.
- Forum has said AT&T didn't start negotiating until May 16, despite the two extensions from the March 31 deadline. AT&T says Forum is demanding a "significant increase" in fees to carry the stations' programming.
Thu, Jun. 2, 9:24 AM
- May monthly performance was: +0.27%
- 52-week performance vs. the S&P 500 is: +5%
- No dividends were paid in May
- Top 10 Holdings as of 3/31/2016: General Mills Inc (GIS): 3.42%, AT&T Inc (T): 3.01%, Coca-Cola Co (KO): 2.95%, Campbell Soup Co (CPB): 2.79%, Exelon Corp (EXC): 2.29%, The Hartford Financial Services Group Inc (HIG): 2.25%, Heineken NV (OTCQX:HINKF): 2.16%, The Kraft Heinz Co (KHC): 1.98%, Suncor Energy Inc (SU): 1.87%, PPL Corp (PPL): 1.87%
Wed, Jun. 1, 2:01 PM
- AT&T's (T -1.2%) prepaid brand Cricket gets a big footprint expansion with news that it's now sold at 3,400 GameStop locations in the U.S., making the game chain the biggest retail distributor for Cricket.
- The locations will be staffed, with a "Dedicated Cricket Consultant," and customers can trade in used games in the stores for credit they can apply to Cricket offerings.
- The deal is an expansion of an existing distribution deal between the two, and it comes as the big four carriers are refocusing on their retail approach to prepaid users.
Wed, May 25, 11:12 AM
- In a surprise revelation, AT&T (NYSE:T) made a bid for Yahoo (YHOO -2.1%) and is still in the running for the core Internet business, Bloomberg reports.
- They were out of the offing according to earlier reports. But they kept involved in the process through a stake in YP Holdings -- which was involved in the early round in April -- and while YP isn't pursuing the transaction any longer, AT&T is still around.
- The interest from the telecom giant would present a formidable challenge for presumed frontrunner Verizon (NYSE:VZ). But Verizon didn't submit one of the highest first-round bids, a pair of the sources said.
- The process has another week or likely more time to play out.
AT&T, Inc. provides telecommunication services and products, including wireless communications, local exchange services, long-distance services, data/broadband and Internet services, video services, telecommunications equipment, managed networking and wholesale services. It operates business... More
Industry: Telecom Services - Domestic
Country: United States
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