So what material business growth, profitability prospects, etc. that changed for the better to make what was a $30 stock in April become $38.58? Earnings estimates for the 9/2012 quarter have continuously been revised downward (.67/share to now an estimated .61/share) without any downward price change?
Unfortunately, the significant rise in stock price from $27-$30/share did not seem to be grounded in financial fundamentals to justify stock appreciation to $38+.
AT&T is a solid company with a sound balance sheet, good cash flow and expense management, and a history of rising dividend payments to stockholders. Additionally, AT&T has acquired much needed spectrum through additional small deals. At $27, the stock was undervalued; however, at $35; there still may be room for futher price decline. The Softbank, Sprint deal prospect was an additional catalyst to create uncertainty for price decline.
As a stockholder, I too was enjoying the stock price appreciation. However in my estimation, this is not a question of the stock getting smashed, but rather a correction to normalcy. Hopefully for all of us, that will not be $30, again.
It appears folks are concerned about a "much stronger competitor" in Sprint given the talk of a Softbank/Sprint merger.
Spint shares are up while T and VZ are down about the same percentage. See their price charts over the last seven trading days.
That's my guess. If so, I see it as a compete overreaction and unfounded panic.
I totally agree. Sprint is light years away from catching up with the likes of T and VZ. The market window for S is completely shut no matter how much funds they have access to plus the fact that, on or about, DECEMBERO 17th, Madam exects T to bump up the dividend to 45 centao pq or $1.8o py.
Sentiment: Strong Buy
T filled a gap from late July and retraced down to a heavy volume bar. The stock is oversold at this point and the lower bollinger band is pretty stretched at this point. It's definitely worth a buy at this level.
I don't think there is anything wrong with AtnT it's just that time of the year,you never know what will happen in OCTOBER..I think anyone with money will buy on these dips..