Given the financial engineering performed with the pension stuffing to unsafe levels, it appears management may be engaged in 'roll-ups' and is often hidden to the unsuspecting investor. Ran across an interesting article about Ackman and Chanos quarreling and it touched on the subject. Bill Ackman's Big Pharma Trade Is Making Wall Street A Very Awkward Place He commented he doesn't usually invest in roll up growth companies because companies can write off losses or hide them with aggressive acquisition accounting. T's CEO is the prior CFO so one should realize aggressive accounting likely in play by nature. Judging by the AT&T circle jerk in pension stuffing with unsafe levels of stock followed by share buybacks it is definitely within the realm of possibilities the bean counter is just out grabbing for a roll up of any kind instead of a sound growth acquisition. Just food for thought.
DTV subscriber growth has flat lined but DTV grows through rate hikes. South America market is not a high revenue/profit generator for DTV. Half of all DTV customers are in Latin America yet generate just 20% of the revenues. South America DTV isn't exactly a profit driver of the future. U.S. DTV revenue and profits will come under heavy pressure in the near future as IP TV rolls out across the U.S. For all that matters there are major metros in South America seeing fiber roll outs which will provide them IP TV avenues as well. Major point is the fat is in the U.S. for DTV and IP TV is going to roast the satellite TV pig.
Nope. But they are beginning to cut the cord for streaming video at the same time T is looking to buy a stagnated satellite TV provider on growth multiples. Pay TV market soon to go through a major shock as sufficient bandwidth of +100mbps is rolling out to the masses.
The lights won't be turned off as he will foolishly stay in the burning building. Stephenson is prepping the building for a burn down by filling it with DTV trash. Three little pigs here and DTV is the straw pig getting invited into the stick house with Stephenson thinking DTV will help them avoid building the brick house. The sticks and straw are going to burn to the ground. Time to build the communications brick veneer instead of playing with straw pigs AT&T. Colao is buying bricks houses with KD and Ono while he builds fiber networks in the other markets.
LOL Coming from a poster who uses multiple IDs and didn't understand VZ had NOT bought VOD. GEDs don't count here Warm.
What kind of logical question/comment is that? SEC doesn't mess with this accounting engineering. People sit here questioning low P/E multiples without looking under the hood. The answer is in the pension gaming.
Came here looking for answers to DTV purchase and found nothing solid. The klown turned it into a dirty hoedown throwdown and it has become as much or more a sport debating his misleading trash.
At the same time they stuffed the pension shortfall with an unsafe level of company stock....then proceeded with share buybacks to push share price and circle jerk earnings higher with a mark up in pension assets value resulting in skewed P/E. Slick Willy financial trickery by the bean counters. Share buybacks instead of properly funding the pension shortfall but they aren't going to mention that next to the $50 billion figure. Supposedly they didn't have the cash for pension funding but they found the money to run a share buyback program.
Falling on deaf ears as Stephenson plans an unnecessary dilution to existing shareholders to the tune of $68B. Stephenson wants to avoid bandwidth consumption instead of building for it.
There are no worries for Nige and I as we know VOD is undervalued in a slumped EU economy. Europe hasn't exactly been a bull market. QE launch will turn the tide.
My old post deleted? Hmmm I've always posted AT&T will be just fine as is but the DTV purchase is the purchase of an AOL rerun. IP TV is going to crush the pay TV market moat.
Good dividend yield goes a long ways and the share price is supported by the yield. The winds shifting in the pay TV world will put the dividend at risk if the DTV deal closes. Just fine for now.
VOD didn't lose money eight straight quarters. Declining profits but they didn't "lose" money. It will turn just like the U.S. did five years ago. DTV subscriber numbers have flat lined. Revenues are modest as rates are jacked up....but that will only carry them so far when new competition shows up through IP TV in the not-so-distant future.
The "earnings" won't add to on a per share basis once you account for the dilution on new shares issued. It is a wash by my figures. All it does is temporarily increase total dollars but drives no value for existing shareholders and puts them at risk in a flat lining subscriber base.
1 Execution risk is bunk speak to spread doubt. Triple play is a no brainer churn killer many analysts have touted for the U.S. market and Carlos Slim plans on doing in Mexico once he sell enough assets to comply with monopoly laws. VOD is already proceeding to where Slim wants to go. 2 Economic risk is already in play and has been for a handful of years. VOD's snapping assets up on the cheap in a depressed EU economy. 3 Currency risk has already been in play and that is an issue with any multinational and just goes without saying. 4 Regulatory conditions seem to be growing IN favor for VOD as much of EU leaders are moving towards consolidation while India's new government looks to attract internationals instead of attacking them for taxes with retrospective new laws.
At the end of the day I think it is about quality of services. No matter what Sprint and T-Mobile price their plans at I wouldn't bother with them because of poor coverage. What good is a plan at half the price when a majority of your calls are dropped? Who has the best quality coverage in the U.S.? VZ. Who dominates the market? VZ. Who has the second best network? T Who is second biggest player? T. VOD is going to have the most comprehensive 4G network in Europe when Project Spring is finished in early 2016 and most of it will be done with cash from VZW instead of new debt. VZ working on major upgrades in Australia and the Africa and India adventure expectedly so for years to come. Fiber is just wise positioning for long term bundled services and cost savings as mobile data can be piped through fixed line instead of the fractured EU spectrum under national ownership. Less spectrum used the better.
The outlook cut really stung IMO. Penny is just what many of the headliners are stating and that is all that many read. Some of this mess expected as T cut its plan pricing to avoid churn increase via TMUS and Sprint who started fighting.
Read one piece recently that was a couple years old which indicated the amount of dark fiber Google has built up over the past decade could be enough to hijack the internet. Tiglet2l, have you read the recent reports about Google exploring millimeter spectrum? Blanket Wifi of cities coming with fiber backbones? I believe T has figured out GOOG isn't bluffing. Cox and CenturyLink now on the move too.
You've had the chance to talk them but you spend as much time with your political trash postings. You will continue to avoid the discussion by attacking the messenger instead of the message.