AT&T Inc. (NYSE:T), once that stodgy, Old World telecom stock that your parents (or grandparents) probably owned, is roaring back. First, AT&T merged with the SBC Communications in a $16 billion deal, to create the largest telecom company in the United States. Next, in 2006, T bought Baby Bell BellSouth (NYSE:BLS) to create a truly massive carrier with roughly 68 million access lines, along with Cingular, the biggest mobile phone service in the nation.
Add to the above a broadband service that's increasing in value as the demand for broadband services continues to grow at double-digit rates, a wide landline network, and an emerging Digital satellite TV business via the Echostar's (NASDAQ:DISH) DISH network that's gaining on cable competitors, and the result is a formidable triple play -- phone, Internet, TV -- company.
Further, AT&T's broadband assets, often overlooked due to the company's established long distance and Cingular operations, may appreciate substantially, moving forward, if the bantered "broadband shortage" ever occurs.
[Technical analysis-agnostics stop reading here. All others, continue...]
In addition, AT&T's chart looks strong technically. AT&T has just broken out to new-high territory, and although shares pulled-back slightly on Friday, closing down 39 cents to $36.40, the overall recent pattern is constructive, the P/E not unreasonable at 19, and the stock has traded primarily above its 50-day moving average for more than six months, another positive.
Established businesses, solid market penetration rates, catalysts for growth, and a positive technical chart: it looks like all the stars are starting to line-up for AT&T, a once Old World stock that's displaying considerable New World pazzazz.
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Reader Comments (Page 1 of 1)
1-29-2007 @ 1:21PM
artdo said...
Ho-hum....yawn......
Sounds like they may be headed for deja vu anti-trust, all over again.
Does this mean my Cingular wireless bill is going to be coming from AT&T....again?
2-02-2007 @ 4:50PM
mary said...
have owned telephone co stocks since the mid 60's. we hung in while they split, and now we are all getting back together again. we missed the boat at the time of the split. should have purchased some shares of office supply companies back then. between file cases and file folders we would have been 'in the chips'.