written by reader Thoughts on T (ATT)

By onthefly71, May 28, 2018

Wanted to get irregulars take on ATT. The stock is currently trading more or less near the bottom of a longer term range, after missing analysts estimates.

It’s got a decent dividend, and I’m considering taking a long term IRA position that I’d add to on further weakness.

The risks as I can see them are

1) loss of customers to cheaper rivals (T Mobile).

2) loss of subscribers to its Direct TV arm, as people switch to cheaper streaming options.

2) uncertainty in the legal outcome of its Bid to buy Time Warner.

The risks are not immaterial imo- I know many folks at work etc who have cancelled their Cable and or satellite TV service. Mainly millennials who are savvy enough to stream and/ or illegally get their content (altered Fire stick TV etc), or retirees who are just cost cutting period.

However ATT is a giant and right now at this level is sporting a nice yield.

I know it trades more like a utility, and there is also the impact rising rates could have on its share price.

Still, I don’t see ATT or Verizon going out of business anytime soon, and this seems like a decent entry point for T, a usually stable stock/company.

Anyone own it or considering?

Thanks in advance

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