T
AT&T Inc
TMT, Consumer
06/17/2016
Presented
| Date | 06/13/2016 |
| Price | $40.38 |
| Market Cap | $249.95B |
| Ent Value | $363.93B |
| P/E Ratio | 17.14x |
| Book Value | $20.05 |
| Div Yield | 0% |
| Shares O/S | 6,190.00M |
| Ave Daily Vol | 20,473,041 |
| Short Int | 1.23% |
Current
| Price | $21.51 |
| Market Cap | $154.23B |
| 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 through four segments: Business Solutions, Entertainment Group, Consumer Mobility and International. The Business Solutions segment provides services to business, governmental and wholesale customers and individual subscribers who purchase wireless services through employer-sponsored plans. The Entertainment Group segment provides video, Internet and voice communication services to residential customers in the U.S. and U.S. territories. The Consumer Mobility segment consists of AT&T Mobility operations which provide wireless services to consumers, and wireless wholesale and resale subscribers located in the U.S. or U.S. territories. It services include data and voice services, including long distance service and roaming services. The International segment provides video entertainment services to residential customers in Latin America and wireless data and voice communication services to consumer and business customers in Mexico. The company was founded in 1983 and is headquartered in Dallas, TX. |
Please note, this idea was updated on 3/3/2017 and can be read here:Short — AT&T Inc (T)
Publicly traded companies mentioned herein: AT&T Inc (T), Berkshire Hathaway Inc (BRK/B), Charter Communications Inc (CHTR), Verizon Communications Inc (VZ)
Highlights
The presenter is short shares of AT&T (T) due to his belief that the heavily indebted wireless carrier’s shares are being propped up by technical factors, but the fundamentals of the business are challenged. AT&T has fallen behind Verizon in terms of value-add to consumers, and unless the overarching bullish thesis around increasing data demand plays out exactly as optimists hope, T shares are likely to see selling pressure. Asset rotation out of low volatility and/ or high dividend ETFs (or by financial advisors) will likely be the catalyst that leads to declines, in his opinion. But he also sees additional risks looming, including cable operators stepping up and participating in the next spectrum auction and/ or legacy issues with off balance sheet liabilities.
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