Verizon Communications - Retirees Beware Of Price Erosion
Verizon Communications clearly has not been one of the leading Dow 30 - Industrials composite companies for quite some time. I put it on a Hold-Cash many months ago.
When a Company stops doing it job it is time to move on to one that will. Verizon has spent over a year not doing what dividend investor must have, that is price ascension along with the quarterly dividend payments.
Today's spike to $49. is telling me that it is trying to move. I am not convinced.
My previously written articles on VZ (just click) provide you the history of my forecasting, its accuracy and support for my performance. For over 50 years my management objective is to identify changing trends for my forecasting analytics.
Look at the Profits for (NYSE:VZ) - Over the Years
It is simple, all Companies Cycle from "Favorable" to "Un-Favorable" and in between, they are "Also Rans." This horse-racing metaphor is the best guidance I have to explain how to know the Good / Bad and the Ugly for all securities on the planet.
Verizon - has: a) gone Up over these 20 years (study the peak to peak and trough to trough); b) is UP over 100% in Favorable time-frames; is DOWN over 50% in Un-Favorable time-frames; and c) has spent years as an "Also-Ran." Southern Company - has: a) gone Up in 20 years (study the peak to peak and trough to trough); b) is UP over 100% in Favorable time-frames; is DOWN over 50% in Un-Favorable time-frames; and c) has spent years as an "Also-Ran." What a Waste of time and money during "Un-Favorable and Also-Ran time frames - don't you think?
Verizon has taken some big hits over the years!
Have a long look at this Chart, it tells you a story about how to make and preserve your profits. Click on VZ. It is not hard to understand how Bear Markets can cause financial set-backs for years and in many cases those set-backs are never recovered. I have over 50 years of successfully doing what I call "preventative maintenance."
Make just a 5 - 10 minute Study of this chart and the others I provide in similar articles you will be convinced that "Being Selective" with the "What" and the "When" of investing your money you will become a very profitable Investor. It is my clear answer to being a Consistently Profitable for my Clients. If you are not "convinced" - - then - - stay with your mutual funds and remain an Investor willing to accept Up and Down performance similar to this Company over the coming years. I suggest that - You deserve Better . . .
( Please go-to my Wednesday - Thumb-Nail - for my articles on ""Sectors." )
You can do better / have it all and I can teach you how !
My Performance Verizon is not included in my 5-Year Table Performance for Income Allocation Model Portfolios and is available by clicking: Income Performance. I believe it accurately shares the rather positive results by first forecasting and then making wise investment decisions. I hope you will agree.
More Support for My Dow 30 Forecasting Accuracy
The following article supports my Methodology of "Investing Wisely" and with superior and consistent annual profits. Just Click.
My management objective is to identify changing trends for my forecasting analytics.
A Special Note for Seniors & Retired Investors - Dividend Yield: 4.42%
It pays a good dividend and when it is in a up-trend it can be a very safe and productive company for Income Investors. However, the "up-trend" stopped over 11 months ago and that is bad for your portfolio.
Forecast w/ 5 Year Performance
Verizon Comm. and other Telecom Companies are tracking the marketplace well. There is always an end to a rally and many Utility / Telecomm Companies are not producing profits as usual.
Note: The below Table is for your review, questions and perhaps thoughts. If you are seeking to "Invest Wisely" in my Income Asset Allocation Model," please email me to open a dialog on how I go about providing superior performance with a very low threshold of risk.
My Current Forecast is not as bright as you may think! (I will be more specific upon your email request).
If you own or are considering owning Telecomm. companies, the securities are becoming a mixed bag. Verizon is currently relatively weak technically and I have reservations about my fundamental valuation; however, it is on my Initial Bearish Forecast - "Warning."
My Current Opinion is to Hold-Cash. Profits were taken and cash is a current safe haven.
* Fundamentally - ( weighting - - 40% ), my Valuations remains relatively strong but are "Flat" and on the Decline. That produces future declining valuation projections.
* Technically _ ( weighting - - 35% ), my Indicators are clearly breaking down. The current mini pull-back since April at about $53 to a current price of $49.
* Consensus Opinion - ( weighting - - 25% ): My third pillar of research is one that is always distorted to the positive by most all financial analysts. That's because they are afraid of being bearish. I am not! My articles on "reality" are supportive of the following chart (click here for a 20 year perspective chart of Verizon).
Verizon has taken some big hits over the years!
"Selectivity" is what I preach (along with discipline and patience) and is what separates the average investor and mutual funds from the profits that come with long-hours / hard work and "selectivity."
Here are a number of the Component Companies / Peers in the Telecom Services Industry Group that I focus on rather frequently if you wish to follow me: (VZ), (T), (NYSE:S), (OIBR), (NASDAQ:LVLT), (NYSE:VIV), (NYSE:TEF), (NYSE:VG), (NYSE:CBB), (NYSE:BCE), (VIP). And, more . . .
I will personally and promptly reply to any serious investor's inquiry as to my very cautious position for VZ !
"Selectivity" is what I preach (along with discipline and patience) and is what separates the average investor and mutual funds from the profits that come with long-hours / hard work and "selectivity." You deserve the best possible guidance and direction and your mutual funds are not doing the job.
Note: Should you have interest in my professional guidance and direction for your Portfolios, please Email Me with your questions or thoughts: email@example.com.
For Daily Updates and a Deeper View into my work / Analytics, you might want to Click and Scroll Down to my "Thumb-Nail" Articles within my personal blog.
Please spend some time reading my articles for a perspective of their and also viewing my Bio before making inquiries. Sharing a bit about yourself and your financial and needs, goals and objectives would be appreciated.
A relationship between You and Your Asset Manager must be a "Win / Win" affair. You get the Performance and the Education and I get paid for my Analytics / Work and Experience.
Smile, Have Fun, "Investing Wisely,"
VZ, T, S, OIBR, LVLT, VIV, TEF, VG, CBB, BCE, VIP