AT&T to invest $3.5B in Ambani-led Reliance Industries Ltd.'s telecom operations
1. This transaction is likely to trigger a credit downgrade since one or more rating agencies have stated that that the credit outlook is negative.
2. By any measure, the payback is years away, if ever.
3. On the earnings front, look for the QI to miss estimates because of the numerous storms on the East Coast.
4. The stock price has reached several analysts' target price and do expect some downgrades to start marching in. For example, S&P has a target price of $36.00.
5. Not sure if the company's announcement to sell the newly introduced BB is a good move in dollars and sense since VZ will not .follow the very same marketing path.
Based on the above, although I am long the stock, nevertheless, I expect some price weaknessses during the days ahead particularly since the overall stock market has reached unexpectedly high levels and overdue for a 10% correction.
Caution- The above is just one man's opinion. Always do your own DD. This is not intended as a stock buy or sell recommenation. The author maybe long, short or market neutral the stock..