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The growth-with-safety story continues at AT&T (T), which is why I'm reiterating my buy rating for the company's shares, first recommended on February 11, 2009 at a price of $25.89. AT&T's successful (but company subsidized) iPhone providership has added more than 7 million iPhone customers since mid-2007 -- a major reason why wireless revenue growth should exceed 10% in both 2009 and 2010; further, AT&T's 3G phone portfolio stacks up versus its competitors.
Also, the company's new fiber-optic network for internet and video services has lots of room to run -- a top side of 30 million households by the end of 2011: it currently has 1.8 million subscribers.
The wireless and internet unit strengths will offset T's obviously underperforming landline consumer/business telephone unit, as wireless, cable, and internet telephone call systems (especially for inter-state and international calls) continue to cut into the company's traditional landline business.
Finally, a nice $1.68 annual dividend rounds-out the positive story. The First Call FY2009/FY2010 EPS estimates for T are $2.12 to $2.24.
2010 Outlook: AT&T is a long-term play, but if you're looking to sell T within the year, take your profits after it rises to $33.
Stock Analysis: AT&T is a low-risk stock. If you've already purchased the company's shares, hold them. If not, consider buying a 25% position in T now; then buy another 25% in one month, if U.S. and global economic conditions don't worsen substantially. Under any circumstance, don't buy more than 50% of your T position before March 2010. Sell/Stop Loss if you were to buy shares in this company: $18.
Disclosure: Lazzaro has no positions in stocks, but does own shares in two Pimco Bond Funds: PHDAX and PYMAX.
The wireless and internet unit strengths will offset T's obviously underperforming landline consumer/business telephone unit, as wireless, cable, and internet telephone call systems (especially for inter-state and international calls) continue to cut into the company's traditional landline business.
Finally, a nice $1.68 annual dividend rounds-out the positive story. The First Call FY2009/FY2010 EPS estimates for T are $2.12 to $2.24.
2010 Outlook: AT&T is a long-term play, but if you're looking to sell T within the year, take your profits after it rises to $33.
Stock Analysis: AT&T is a low-risk stock. If you've already purchased the company's shares, hold them. If not, consider buying a 25% position in T now; then buy another 25% in one month, if U.S. and global economic conditions don't worsen substantially. Under any circumstance, don't buy more than 50% of your T position before March 2010. Sell/Stop Loss if you were to buy shares in this company: $18.
Disclosure: Lazzaro has no positions in stocks, but does own shares in two Pimco Bond Funds: PHDAX and PYMAX.
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