Tag Archives: AT&T

Mobile ad opportunity

Vodafone`s (VOD) FY EBITDA dropped 5,4%. Their revenue also slipped 1,9% to £43,6 billion. Net profit attributable to shareholders soared to £59,25 billion from £413 million in 2013, boosted by the sale of their 45% stake in Verizone Wireless for $130 billion.

Vodafone logo

Organic service revenue declined 3,8% in Q4. Adjusted operating profit dropped 37% to £7,67 billion, mainly due to a much lower contribution from Verizone Wireless before it was sold. Vodafone expects FY 2015 EBITDA to drop to £11,5 billion.

CEO Vittorio Colao say Vodafone`s emerging markets businesses have performed strongly. In Europe, the company continues to face competitive. Vodafone declared a final dividend of 7,47 pence a share, giving total dividends of 11 pence, up 8%.

Vodafone is the world`s second-largest mobile network operator and the Pan-European FTSEurofirst 300 Indes slipped today as Vodafone fell 4% after reporting huge impairment costs. Vodafone was the biggest faller on the FTSEurofirst 300 today.

The underlying profit continuing to move in the wrong direction and it seems to be very expensive to be in this competitive markets. AT&T bought Direct-TV to diversify and continue to grow its business.

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This makes AT&T strong, and Verizone, Sprint and T-Mobile should watch out, as AT&T has more leverage right now. Direct TV`s coverage map can reach 99% of households. Their mentions that cost savings will exceed $1,6 billion.

AT&T now have the ability to price itself lower than other competitors. AT&T`s CEO belive the deal will go through regulators in light of recent trends in telecom and communications. AT&T bought out Direct TV for $95 per share ($48,5 billion).

It`s probably better to be on the other side. Facebook are earning money on their direct ad mobile advertising. Now, Yahoo have the ability to do the same as Facebook. Yahoo is down -16,2% so far in 2014.

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The Alibaba IPO can give Yahoo a huge opportunity as they have a potential in Yahoo`s mobile advertising. They can acquire mobile advertising firms like Millennial Media or AOL. This is what made Facebook a big growth company.

Yahoo have Yahoo Weather, Yahoo Finance and Tumblr. They have about 360 million global users and this amount of users can make Yahoo grow with a new mobile ad platform. Yahoo have the ability to buy Millennial Media cheap.

Anyway; Yahoo`s stake in Alibaba will give them a lot of cash, and you all know that Cash is King! Money is just a piece of paper. It ain`t worth something. Just the thing you can buy with the cash. So what is money? It`s just tools, and you need the tools to reach your goals.

Yahoo have a huge opportunity during the Alibaba IPO, and they can be a great growth company if they are doing the right things now. Yahoo have been on the market for a long time, and money will not be the biggest problem for them now. They need a great idea. Mobile ads can be one of them.

Read my article about Ymobile on March 28, 2014.

Reports today:
08:30 a.m EST FOMC Member Plosser speaks
08:30 a.m EST FOMC Member Dudley speaks

 
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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AT&T is a long term pick

Fed Chair Janet Yellen said in a speech in Chicago yesterday that the recovery still feels like a recession to many Americans. The «overall comitment to maintain extraordinary support for the recovery for some time to come» is a strong one, she said.

«The scars from the Great Recession remain, and reaching our goals will take time», she said. U.S stocks moved to session high. S&P 500 up +0,79%. Dow up +0,82% and Nasdaq up +1,04%. It’s all green in Europe today too. All indices are up, but it was mixed in Asia earlier today.

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The biggest U.S phone company AT&T Inc is planning to repurchase 300 million shares (about 6%) on its outstanding stock. AT&T Inc has acquired 775 million shares since 2012. They give itself room to boost shareholders returns and repurchasing 300 million shares would cost about $10,6 billion.

AT&T`s dividend yield is 5,2%. It is expected to see a net-debt-to-adjusted-EBITDA ratio in the 1,8 range or lower. This is a stock for value investors that offers reasonable dividend yields, low valuations and a solid margin of safety.

The stock has declined in 2013. Down from its high at $39. At&T Inc is now trading at $35,07. Both AT&T and Verizone are dropping but not a huge plunge, but they look worse when compared to the Dow`s gain.

The telecom sector is still unloved, and its all comes down to the never-ending radio spectrum battles. Companies like AT&T, Sprint, Verizone and T-Mobile sit on the losing end of this zero-sum equation.

Sprint investors are ignoring the good spectrum tidings, worried that this idea might be a needless cash flow killer. Building a so-called FirstNet will cost about $7 billion to build and there will be less pressure to make big money on the larger auction of former TV station frequencies next year.

Bad for Verizone and AT&T. Good for Sprint and T-Mobile, and great news and even better for the American people.

Reports today:
10:00 am. EST ISM Manufacturing PMI

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication

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AT&T up

A nice rally for Asian stocks today. Nikkei up +1,77% to 14,475 points. Hang Seng is up +1,91% to 21,846,45 points. Gold and Silver is down and European stocks are in the same direction; in a red territory today.

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U.S indices will open up today, and many investors are now bullish on AT&T. The investors have not been that bull since Apple chose AT&T as exclusive carrier for their original iPhone. The stocks dividend payout will lure income investors searching for yield.

So far this year has been bad for the shareholders at AT&T. The shares sank 9,2% in January and February and that is the worst start to a year since 2010. AT&T have like other in the same business faced increased price competition in the mobile market.

The drop pushed the dividend payout to the highest among the 30 stocks in the Dow. The average yield of stocks in the S&P 500 is about 1,9%, while 10-year Treasuries (USGG10YR) have paid an average of 2,52% in the past year.

Reports today:

09:45 AM ET Flash Manufacturing PMI

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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AT&T in Europe

AT&T (American Telephone & Telegraph) in planning to start business in Europe. AT&T (NYSE:T) Inc is an American multinational telecommunications corporation, headquartered at Whitacre Tower in downtown Dallas, Texas. The company is founded by Alexander Graham Bell in 1876.

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AT&T is the second largest provider of mobile telephony and the largest provider of fixed telephony in the United States. They also provides broadband subscription television services. The company is the third largest company in Texas, but the largest non-oil company.

 

ExxonMobil and ConocoPhillips is the two that is bigger than AT&T and as you know they are in the oil industry. As of May 2013, AT&T is the 21st largest company in the world by market value. It is the 13th largest non-oil company.

 

As of 2014, AT&T is also the 20th largest mobile telecom operator in the world. They have over 107,9 million mobile customers. As you may know, this is a big company, planning to expand in Europe.

 

The stock price reached a top in Jul, 16, 1999, trading at 59,188. Now, 15 years later, the stock price is trading at 31,93. The stock has declined for a long time now, and while the S&P 500 hits new all-time highs, AT&T is near 52-week lows. Down -9,2% in 2014.

 

Some investors say that T will not make you rich as an investor overnight, but it can be a great stock in a longer term. T offers a fair valuation. They have a solid dividend yield and a mild earnings growth. They have two unites: wireless and wire line.

 

Some speculators say that this company is near the bottom as the P/E ratio reached single digits and dividend yield passed 5,75%. P/E ratio is 9,61 and the downside should be limited, but we have to keep an eye on the earnings.

 

The British telecom giant Vodafone (VOD) reported disappointing results in the third quarter ended December 31, 2013. It was worse than investors expected. It seems like Vodafone don`t have the ability to grow revenue in Europe, but the stock is doing it better than AT&T.

 

AT&T announced that the company will not make an offer for Vodafone, but they are looking for a large acquisition in Europe because they experience the same as Vodafone does in Europe; limited growth in the United States. The reason why AT&T is careful in acquiring Vodafone is their poor performance in Europe.

 

They are all selling the same products; SMS, MMS, phone calls and online access. You can`t say you have a better SMS than your competitors. They`re all the same, which means it all comes down to one thing: price, and that is good for the customers.

 

Some of the operators are just selling online access and gives you SMS and MMS and all your phone calls for free. You pay only one amount, no matter how much you call or send SMS. But that amount is much bigger than online operators like Skype and WhatsApp.

 

Skype is for free and WhatsApp costs 1 dollar after 12 months. If you go for those free solutions, you still need the wireless company and that is where they will earn money in the future: Online business.

 

 

Reports today:

 

08:30 AM ET Motor Vehicle Sales
08:30 AM ET Personal Income and Outlays
08:58 AM ET PMI Manufacturing Index
10:00 AM ET ISM Mfg Index
10:00:00 Constructiono Spending

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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