sprints drop after what was arguably a better than expected earnings report may be puzzling to some. but you have to look at the 30 cent a share gain it made the day before....there are 2 dynamics in play here...first the day before earnings report. which one may interpret as post earnings optimism that simply corrected. the price is almost exactly back where it was at mondays close. the second thing that happened was the announcement by winstar that they would be allowed to spin off some of their less productive assets in REITs. all the telecoms shot up on this news but i am wondering how well positioned sprint is to take advantage of this new ruling. i cant see that they would be but perhaps im wrong.
as i said in a previous post the advantage is a significant tax break for the newly created assets and the disadvantage is that almost all (90%) the earnings the newly spun off company would have to pay out a dividend. this idea works for companies with assets that generate a lot of cash but have no growth potential(or even negative growth) such as land lines. but if you are referring to the dividend of ATT, the main company that would not be spun off in any arrangement i doubt it would have any appreciable effect on the dividend at all.
sprint has gotten into the black more by massive cost cutting and laying off employees rather than any positive growth model. still i agree with you. sales, earnings and customer losses were all below analyst expectations. the only thing i see is sprint had a big run up right before earnings reported an almost 4% gain so maybe it just corrected today.
if he liked the vod deal so much he should just buy VZ then go into the VZ message room and share his joy with the people who post in there instead of coming into this room and being a crank. the vod deal is over. time to move on.
oh tokuus name is there all right but its in black letters and not blue and the flag option does not appear when you move the cursor over his name like most. oh well. no biggie.
comcast is another good stock. comcast and att are probably my two favorite stocks. the main reason is massive cash flow. both are unreasonably hated by the public and the media. both are undervalued accordingly. big difference is comcast has much better intermediate long term growth potential. ATT hit a new high yesterday too. think it might have been the REIT effect.
his name seems to have vanished from the records and treward suddenly appears with almost the same personality traits. interesting? only to a mental health professional.
lol...i never said you were any of those people. yeah im thinking it might dip down below 36 even for just a bit but you better get in fast. 90 million shares sold yesterday and 70 million + went for 36.80+ with insiders buying? the flaw in your thinking is you see the stock market as some kind of yoyo and dont account for real value being added. if ATT can use the REIT angle to add shareholder value they will for sure. as for the if they will question...why the insider buying if they didnt think that angle was useful? could be coincidence but i rather doubt it.
if you wanted more chances to sell at 37 im pretty sure you would have had them by the end of next week but if thats where you wanted to get out thats fine. GL tigle.
well its going down.....6 million shares traded between 36.3-36.5 today and 90 million shares traded yesterday between 36.8-37. most of the money is closer to 37 so i go with the money and not recent events. tokuu ...or treward. or whatever your name is. losses on paper dont mean #$%$ to me.
1. it looks like there might have been some correlation to price rise and land line exposure. T 3.6% landline. 2.64% gain. Sprint 1.8% landline gain 4.71. VZ .6 landline .76 gain. though i cannot find data for winstream and centurylinks % of landline revenue i suspect it is higher than those of those above. those being the two that went up most today ...12.4% and 5.8% respectively.
2. something you only see once in a blue moon from ATT execs happened right before this up move. insider buying folks. i think this is the real deal.
the reason it can happen to the whole sector is simple.....if the REIT rule applies to one it follows by extension that it should apply to all equally in the same manner. a perfectly reasonable assumption on the face of it.
winstream apparently claimed they got a private letter from the government claiming it would allow them to spin off assets into an REIT which would allow them to benefit from considerable tax savings. the market...specifically the big institutions because i was seeing huge large block upticks today, seems to be saying "hey if winstream can do this why cant other telecom stocks do it?" if ATT can do similar restructuring as winstream you could see a price around 40 bucks a share soon according to my math but there are a few ifs....can ATT take advantage of this deal as well as winstream...can ATT take advantage of it at all? is this just a special deal only winstream is allowed(this i doubt).
74 million shares traded? no its real. unless there is some new news....something like windstar faked the letter from the government or something like that. you can always pray i guess treword. but no...im afraid all your chickens have come home to roost. barring the extraordinary $36.50 is now the new bottom level of support. get use to it.
its not a question of ATT going entirely REIT but spinning part of its assets into an REIT. so the new entity would be part real estate holding company that payed an unusually high div and in exchange was able to avoid taxes...the other separate part would operate as before. but if i understand this correctly you would be looking at something that morphed into 2 distinctly different forms. i dont think anyone, including the big boys, fully understand the implications of this yet.
TOKUU VANISHES!!!!!!!!!!!!!! where is tokuu when you REALLY need him?