Sun, Apr. 5, 9:18 AM
- T, PM, VZ, DUK, STX, GM, GE, MCD, CAT and DOW are 10 “high-quality” S&P 500 stocks with dividend yields of 3.5-5.7% and promising growth potential, Barron’s says, citing Howard Silverblatt of Standard & Poor’s Financial Services.
- 60 companies in the S&P 500 yield 3.5% or more, but the above stocks cover their dividends from estimated 2015 earnings. The list also excludes REITs and MLPs.
Sun, Apr. 5, 8:47 AM
- Google (NASDAQ:GOOG) is in talks with Hutchison Whampoa (OTCPK:HUWHY, OTCPK:HUWHF) for a deal that would allow Americans to use their phones abroad at no extra cost. Hutchison could give Google access to mobile service in the UK, Ireland, Italy, and several more markets.
- Google's goal, sources say, is to create a global network with the same cost for calls, texts, and data no matter where a customer is located. Hutchison would be a natural partner for Google, because it has also sought to eliminate roaming charges for its customers.
- Google has so far described its mobile network aspirations as "small scale." A serious move by Google or Apple to enter the mobile market would be feared by U.S. giants AT&T (NYSE:T), Verizon (NYSE:VZ), Sprint (NYSE:S) and others.
Thu, Apr. 2, 4:26 PM
- Over-the-top video services seems to have accelerating momentum as more unbundling happens every week, but high-yield pay-TV companies have little to worry about just yet, Moody's says in a new report.
- Customer inertia along with the limited competition they now face should buy providers time to adjust.
- "Evolutionary, not revolutionary" is how the firm describes the pay-TV shift, saying that OTT providers, including Sony and Apple, will take a small number of subscribers for now -- even though consumer perception seems to favor OTT options.
- The firm notes rising bills could force defections, but "the average customer may not realize how much content traditional pay TV service provides, from video on demand and across multiple devices."
- Pay TV stocks today: (CMCSA +1.5%), (TWC +1.9%), (CVC +0.9%), (CHTR -0.6%), (T +0.7%), (VZ +1.1%)
Tue, Mar. 31, 9:08 PM
- Verizon's (NYSE:VZ) plans to join competitors with its own mobile video streaming service (as early as June, in Verizon's case) could hit a snag with the FCC's recent net neutrality ruling.
- The key comes in data caps that most wireless customers face; trying to treat video as a "managed service" and exempting the streaming usage from the caps "would be a very provocative move," says analyst Craig Moffett. "I don't think the FCC would be pleased."
- Unlike key competitors pressing their own over-the-top services -- Sony, Dish Network, Apple -- Verizon operates its own 4G network, and could face resistance from content partners that need to maintain relationships with the pay-TV providers.
- If a managed service doesn't fly with the FCC, Verizon may need to sell unlimited LTE or its streaming plans could get too costly.
- Verizon may make the service ad-supported, in part or whole replacing subscription revenues, CFO Fran Shammo suggested last week. The company bought its OnCue streaming tech from Intel last year and has Digital Media Services technology to splice in ads.
Mon, Mar. 30, 10:03 AM
- American Tower (NYSE:AMT) says it's closed its $5.06B transaction to take over tower sites from Verizon (NYSE:VZ) -- which sought to sell off tower and wireline assets after bidding heavily in the FCC's AWS-3 wireless spectrum auction.
- AMT drew funds from its offering of 25.85M shares of common stock and 13.75M depositary shares, as well as revolving credit and cash on hand.
- American Tower reported $313.5M in cash in its most recent quarter.
- AMT up 0.5%; VZ up 0.8%.
- Previously: Verizon reaches $5B sale of towers to American Tower (Feb. 05 2015)
Fri, Mar. 27, 8:58 PM
- Glenn Lurie, CEO of AT&T Mobility (NYSE:T), says he's not worried about the outcome if Sprint (NYSE:S) and T-Mobile (NYSE:TMUS) -- third and fourth in the U.S. wireless market behind AT&T and Verizon (NYSE:VZ) -- decide to merge.
- "We are a very, very different company than the other three," he tells FierceWireless. "So whatever happens with them, I'm not really that concerned. I'm concerned about how we execute and how we operate."
- His No. 1 goal, Lurie says, is to reduce churn and preserve the company's current subscribers in order to upsell other services.
- Chatter continues to suggest that Sprint and T-Mobile may have to think about combining to achieve competitive scale, and in the meantime they're firing salvos in a price war that Lurie says AT&T won't join: "This industry is not commoditized at all."
- Previously: Goldman upgrades T-Mobile; DT reiterates merger wish (Jan. 20 2015)
Mon, Mar. 23, 5:28 PM
- As it set its annual meeting for May 7, Verizon (NYSE:VZ) reveals in its proxy statement that CEO Lowell McAdam got total compensation in 2014 of $18.3M, up almost 16% from 2013.
- Base pay for McAdam rose to $1.6M, up almost 7%.
- CFO Fran Shammo earned $6.5M total, up 9%, while base pay was $815K, up 7%. Executive VP Daniel Mead -- who will direct transferring the company's wireline assets to Frontier Communications and then retire -- earned $7.7M in total comp (up 7%), while base pay was $940.4K, up almost 7%.
- EVP John Stratton earned $6.3M in total comp, and EVP Randal Milch earned $5.6M.
Mon, Mar. 23, 4:34 PM
- In the wake of loud complaints from competitors about Dish Network's (NASDAQ:DISH) wireless spectrum bidding strategy -- using small-business partners to draw a 25% discount as "designated entities" -- the FCC is edging closer to reforming the process, Reuters reports.
- After being called to Congress and promising to "fix" the bidding rules, FCC Chairman Tom Wheeler is circulating a document to fellow commissioners to discuss specifics on how to reform the program.
- In particular, AT&T (NYSE:T), Verizon (NYSE:VZ) and T-Mobile (NYSE:TMUS) complained of "distortion" in the bidding process created by Dish's practice of bidding through its DEs.
- While using DEs is common practice, the size of that auction meant that Dish saved billions via the 25% discount.
- The recent AWS-3 spectrum auction drew a record $45B -- but a "low-band" auction coming next year may be even more crucial to the industry competitors, as that spectrum is key to the ability to stretch wireless signal further into buildings.
- More on FCC auctions
Mon, Mar. 23, 3:24 PM
- The Barron's 400 has regularly beaten the S&P 500 (NYSEARCA:SPY) since its 2007 launch, writes Chris Dieterich, and also powers the Barron's 400 ETF (NYSEARCA:BFOR), which has topped the S&P 500 by nearly 500 basis points since starting in June 2013. BFOR is up 6% YTD, more than double that of the S&P 500.
- Among those added to the index during last week's twice-yearly rebalancing were Celgene (NASDAQ:CELG), American Airlines (NASDAQ:AAL), Starbucks (NASDAQ:SBUX), and Ameriprise Financial (NYSE:AMP).
- Among those dropped were McDonald's (NYSE:MCD), Wells Fargo (NYSE:WFC), Verizon (NYSE:VZ), and IBM.
- A "ruthless" quantitative security-selection method screens for growth, value, and cash flow, and filters further with other factors such as diversification.
Wed, Mar. 18, 2:20 PM
- At its latest "un-carrier" marketing event, T-Mobile (TMUS +0.6%) started taking the price war to business, pushing low-cost plans for small and medium businesses that are about half that of rivals AT&T (NYSE:T) and Verizon (NYSE:VZ).
- The company is launching a plan that offers switching companies a rate of $15/line for 20-plus lines, featuring unlimited talk and text and 1 GB of data, upgradeable to unlimited data for $30. The price drops to $10/line for 1,000 or more.
- It's also picking up device costs (up to $650) for switchers.
- T-Mobile is the smallest of the big four wireless providers, but CEO John Legere says it's not making desperation moves: "This is not a diving, 'hail mary' pass for us -- we're growing like crazy," he says in Q&A. "This is logical, planned growth."
- IDC says T-Mobile increased its share in business services to 10% from 3% last year.
- Legere also pointed to the importance of the coming lowband spectrum auction: "That [recent AWS-3 auction] wasn't an important auction for us. The lowband is."
Fri, Mar. 13, 5:57 PM
- More in a growing series of moves from America's No. 3 and No. 4 carriers to cut into the share of AT&T (NYSE:T) and Verizon (NYSE:VZ) ...
- T-Mobile (NYSE:TMUS) is offering selected customers a free upgrade to unlimited 4G LTE for the rest of 2015. The customers are getting a text link to a page describing their upgrade. However, those customers will lose their rollover Data Stash unless they opt out of the freebie.
- In a boundless push for customers, Sprint (NYSE:S), meanwhile, is upping the ante on its aggressive pricing by offering to pay all of a customer's costs to switch to them -- remaining phone installments, termination fees, regardless of the amount. The company is requiring that you turn in your current phone and a bill showing the charges due.
- Previously: With declining postpaid ARPU, Sprint eyes customer growth (Feb. 05 2015)
Thu, Mar. 12, 11:11 PM
- The FCC released its lengthy order on net neutrality and Title II regulation today, starting a timetable to get it into the Federal Register and then a 60-day period to put the rules into effect.
- Overall, the 400-page order leaves some case-by-case room for the agency to work out a few details along the way.
- The order may have been most anticipated by telecom lawyers (T, VZ), who may be preparing their lawsuits for just over 60 days from now.
- Notable news is that the agency doesn't just plan some forbearance on Title II regulation (involving treating Internet carriers as a public utility), but vast forbearance, in what seems an industry-friendly move; the focus from here may be on the details of just how much is actually "vast."
- Interconnection (governing traffic exchange agreements; key to NFLX) and sponsored data programs are subject to case-by-case review rather than the bright-line rules -- suggesting a light hand from the agency on such deals, for now.
- Industry reaction from NCTA (Cableco trade group): "Confirms our fear that the Commission has ... instituted a regulatory regime change for the Internet that will lead to years of litigation, serious collateral consequences for consumer, and ongoing market uncertainty."
- AT&T (NYSE:T): "Ultimately, though, we are confident the issue will be resolved by bipartisan action by Congress or a future FCC, or by the courts."
- Netflix: "The FCC’s order is a step toward ensuring Americans get the Internet access they pay for and content providers like us have recourse from broadband monopolists demanding what the FCC called 'unfair tolls.' "
- Also: the FCC's municipal broadband preemption order
Wed, Mar. 11, 8:34 PM
- Digitalsmiths -- the data research company owned by TiVo (NASDAQ:TIVO) -- has a white paper out suggesting that 1.5M Americans plan to cut the cord and ditch their pay television service, while another 38.1M are dissatisfied -- two-thirds of those because of the cost.
- The report -- based on its sample of more than 3,000 subscribers -- says 8.9% switched pay-TV providers in the prior three months, up 2.1% Y/Y.
- Another interesting number: 78.7% of respondents watch 10 channels or fewer -- which has to make future cord-cutters wonder what they're really paying for.
- While the report is largely bad news for pay TV, parent company TiVo is marketing devices both for cord-cutters and for its pay-TV partners. And 20.4% of survey takers recently upped the level of their pay service. (hat tip: FierceCable)
- Pay TV stocks today: CMCSA -1.1%; TWC -0.5%; CVC -1%; CHTR +0.7%; T -0.5%; VZ +0.4%.
Wed, Mar. 11, 12:51 PM
- DreamWorks Animation (NASDAQ:DWA) is up 2.3% as Verizon (NYSE:VZ) seals a deal to add 200 hours of original video content to its upcoming video service from DWA's AwesomenessTV and DreamWorksTV, targeting teens and young millennials with over-the-top video.
- The programming will include scripted and unscripted series as well as DreamWorks original characters.
- AwesomenessTV, acquired by DreamWorks in 2013, features 7B views and 112M subscribers.
- The deal will take some pressure off what some, like BTIG's Richard Greenfield, see as a heavy dependence on Netflix.
Tue, Mar. 10, 10:21 AM
- The price war may have "calmed a bit," says Verizon (VZ -0.7%) CFO Fran Shammo, but the company still expects wireless cancellations to increase in the first quarter.
- Speaking to the Deutsche Bank conference, Shammo says the industry really heated up last year, with 90 price moves compared to about 20 the prior year. Retail postpaid churn jumped to 1.14% in Q4.
- Shammo sees more of the same this quarter but says the company isn't concerned.
- And more in transition: Along with Dan Mead's planned retirement after he directs the wireline asset sale to Frontier Communications, Shammo announced the retirement of Verizon's chief technology officer, Tony Melone.
- Previously: Carriage dispute drops Weather Channel from Verizon FiOS (Mar. 10 2015)
Tue, Mar. 10, 9:04 AM
- The Weather Channel went dark on Verizon (NYSE:VZ) FiOS stations today as carriage agreements expired without renewal. Verizon has placed AccuWeather Network content on the stations where TWC lived.
- It's not the first showdown for the Weather Channel, owned in part by NBCUniversal (NASDAQ:CMCSA) along with Bain Capital and Blackstone (NYSE:BX). A year ago the channel took a few months' hiatus from DirecTV over a carriage fee dispute and returned thanks to Hilton Hotels' insistence.
- The channel has a bit of weight to throw around -- it's tops on the Nielsen list of national networks, with 97.1M subscribers.
- Verizon shares are down 0.7% premarket.
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Verizon Communications Incis a provider of communications, information and entertainment products and services to consumers, businesses and governmental agencies. Its two segments are Wireless and Wireline.
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