Get ready for VZ breaking the $30 support floor to $25 which is the new support floor. My sentiment is changed to strong sell for now.
Now why do I say that?
VZ was doing about 30 before the recent unexplained run up to about 33-34.
I think this was due to street rumor of T buying but it turned out to be not involving VZ. Turned out the premium went to BS. So, VZ will gradually settle back to 30.
Assuming that VZ spends 40B to buy the rest of VZW from Vodaphone and assuming VZ buys it at a market premium of 25%,about 10B premium (a reasonable assumption as 20%was the premium paid by T to buy BS), that means VZ stock will take a hit of about 3 points.
There is also the unfunded pension obligatin of about 20B. Not all have to be booked at one time. Assuming it is paid over four years, 5B per year, it works out to be about 2 points.
So the total works out to be about 5 points down from 30.
While I disagree with your opinion and agree with others who point out what seems like a negative bias, as witness this statement: "VZ was doing about 30 before the recent unexplained run up to about 33-34" (it's been well-explained, so I suppose you really should drop the "analyst" part of your screen name), you do at least get me and I hope, others, to at least do a little more research on the stock. Good luck with whatever your plan is, though.
You must of been talking to Cramer !!! Their is no way this stock is going to 25...all the analist are predicting a 32 to 35 value for this year with the possibility of 40. One reason why you spread these rumors....either you or someone you work for want to buy VZ cheap... Its a good time to buy...before it reaches the 45 mark...
Funny how you ignore all the upside. One small example being in my area many are dumping Time Warner provided internet by replacing it with Verizon DSL which is same quality but about 33% cheaper. This stock is cheap here and the yield limits downside risk.