Agree, he is making a desperation move at the possible top of world growth. What has this man done for T holders for a long time now other than give you a dividend and chase Sprint's flawed business model for some time now and if shares continue to decline kiss your dividend gains goodbye as a lower stock price offsets any yield. I can compare him to Maggie since he is gambling with a huge debt load that will have to be serviced the combined companies had better grow numbers big time or we will be looking back at this deal in a few years as another CEO who overpaid at a market top like so many did in 2007.
A lot of panic dumping today across the board however as soon as they announced the deal would go through with stipulations the stock took a dive and never looked back. This is lot of money AT&T is paying and the market may be saying they are overpaying at the top of a market and world growth cycle. Yes the market was horrible this week but AT&T put out a good report last night and could not hold most of the gains once the deal was approved that may be telling you something.
They do not like the deal. DTV shares had a very good day in a horrible market. The former CEO of Frontier Comm. was on Squawk Box this morning she is still an executive there she has loaded FTR up with an incredible amount of debt and the shares are at a multi year low. She is the Carly Fiorini of telecom and she was stating that Stephenson "gets it". I guess she means loading up a balance sheet with debt is getting it.
Yup they are about to talk about her passion for wines. Meanwhile what she has done for shareholders is borderline criminal. $500+ million in cash and over $9 billion in debt. Eventually they will have to slash or eliminate the dividend. I got shares via the VZ deal a few years ago so I reinvest them and if there is ever a pop I will probably sell them. Remember when this thing popped over $8 on Feb 5th in the AH on some news I shorted at $8.50 and covered at $8 wish I was still short. Better yet analysts were coming out and upgrading the stock after that event. Debt kills in this market look at the drillers who are struggling to service that debt. It's a similar scenario here with the competitive nature of telecom and the lack of real pricing as to service their debt too. Maggie is the Carly Fiorini of telecom and the TV people love to praise her for failure.
There is no way this is going to any of those targets any time soon. CHK is loaded with debt which is killing the drillers too. I have traded this stock for a few years now and I see this going to the $7's before any hope of a bounce. I'm not here to bash I just believe commodities are still heading lower possibly until oil bottoms. CHK is like a lot of the drillers now such as LINE, LNCO, SDRL etc. they all had bounces in Feb and have all been cut in half since. Do not underestimate debt in this market it is finally is paying attention because it is hard to service debt with lower energy prices.
Probably more than one the same thing happened when oil was over $100 and went to the $40's a lot of longs got margin calls and it creates a cascading affect and now commodities are just in free fall with markets questioning world growth then factor all the feds who are propping things up. CHK's problem is the nat gas price, abundance of it and their DEBT is going to do them in. I went long just over $9 for a trade if I get it I run this stock is going to the $7 area like some of the drillers that are loaded with debt and lower oil prices. I am amazed that Icahn is still in it if he is.
Hope it can climb over $35 and hold is possible but not sure it will. If this had been a better market day you may have seen over $35 now based on it not dropping a lot today.
This is actually OK need to hear the CC. The first few minutes were traders shorting everything at first shares should move higher unless the CC warns.
Figuring it will be similar to VZ's report. If they were not reporting you may not have seen this much weakness as the 10 year is pulling back nicely but have no fear R.S. has it under control with his DTV deal.
It's called piling on when they see shares have weakened from the recent pop. It's s safe bet they were shorting over and around $20. New 52 week low is close