Anybody picking up ATT stock?

[millennial]

Personally been long on Restoration Hardware and Dilliards

Restoration since the CEO has been messing with the valuation to reach $150/share at which time he should receive a huge payout. Up about 20% since purchase 2 weeks ago.

Dilliards due to the low market valuation compared to net assets. Similar to Sears company holds a lot of valued RE. Currently short interest is very high so should have high upside once short sellers cover.

[Coronita]

I am surprised none of you suggested Bitcoin….lol.

[moneymaker]

Next on the radar is F. I am not a fan of the new design of the ford ranger, it reminds me of when they changed the jeep cherokee design. Made it look to curvy, guess they are trying to get women interested in buying, not that they don’t already! If I was running Ford I would put out a small 4 cyclinder diesel like jeep did way back. It would have pulling power and still get 20+ in the city. It would need a beefy transmission so they would of course have to get that right. VW failed there in their early TDI automatics.

[Myriad]

T has done a good job of wasting shareholder value. The relative performance has been pretty crappy.

Sometimes I get tempted, but the EV is already $465B and sitting on $200B of debt.

https://activatingatt.com/wp-content/uploads/2019/09/Elliotts-Letter-to-ATT_09092019.pdf
Sounds interesting, but a 60% increase would mean AT&T is at $740B company – I just find that hard to believe.

And who’s heard of a company where it’s better to buy your stock because of the dividends than it is to pay off the debt…

[temeculaguy]

F was a good call in 2008 at 1.85 (hmn I believe I started a thread about that and everyone said no). I recently looked at Boeing with all their problems and it’s still 3x what it was 3 years ago, I’ll pass. T is still too high. I’m going to stay on the sidelines with my gambling money and just stay in with the 401k and educational roths for the grandkids in index funds and large/midcaps and await the bargain season, especially if a socialist gets elected. Keep your powder dry boys and girls, late 2020/early 2021 will be black Friday for stocks. I personally don’t think a socialist will cause long term damage but it will present a buying opportunity in the short term. Pendulums swing, bet them.

[gzz]

I purchased ATT in July and am up 13%. Going to hold on unless it spikes up 20% or something and then sell on valuation.

Buying Telcos when they are down is something I’ve been doing for 10+ years.

I wonder if I am the only guy in San Diego who can talk about the challenges Telecom Italia, Orange, and Telefonica faced in the late 00s to mid 10s. Maybe not with QCOM here.

Here’s a little secret: European countries won’t ever let their main telco go bankrupt. Since they are TBTF, they leverage up, and can look very precarious in a recession. But the leverage can work out well in a boom. And even in bad times they generate a lot of cash and their losses are usually non-cash writedowns of acquisitions or infrastructure investments.

[The-Shoveler]

[quote=temeculaguy]I personally don’t think a socialist will cause long term damage but it will present a buying opportunity in the short term.[/quote]

LOL I think that would be the end of the stock market IMO.

At least until they realize all the public pensions are going broke because they are invested.

[temeculaguy]

That is a dichotomy/catch 22 I never realized until you pointed it out zk. The socialists are all about the workers and anti corporations yet the workers pensions are reliant on the stability of the corporations. I’m going to have to adjust my strategy and retract my advice and give this some thought.

[gzz]

Purchased KHC today. Buffet liked it at 75, I like it at 28.4.

I am a sucker for a value play.

[Hobie]

Sorry to threadjack– but So Cal Edison is within 8% of its 5 year high even after causing the Paradise fire, go figure!

[Coronita]

I bought some TSM… Theres report going on about customers like AMD might be seeing production slip dates from 1-2 months to 6-7…. That suggests TSM is running near full capacity and business is good.

[Myriad]

https://www.wsj.com/articles/at-t-sale-of-directv-would-be-no-blockbuster-11568923943?mod=lead_feature_below_a_pos1

T probably wouldn’t get what they paid for it ($49B) and they would lose $8B/year in EBITA. If they did it, probably would have to cut the dividend for a while.

[Coronita]

I told ya guys Taiwan Semi was going to take off.

Intel recently just ceded that they will be happy just to match TSM’s capabilities. And TSM’s 5nm yields are already looking pretty decent.

Intel still working out the kinks in 10nm (which is really closer to TSM 7nm), but for main production runs, they are still on 14nm+++++++++++++++

Closest competition is maybe Samsung, but they are having their own issues.

TSM 5nm yields at 80% with launch in 2020
https://www.anandtech.com/show/15219/early-tsmc-5nm-test-chip-yields-80-hvm-coming-in-h1-2020

https://finance.yahoo.com/quote/TSM

[The-Shoveler]

Great call flu, you really seem to have a good handle on the semiconductor world.

[Coronita]

I hate working in the semi industry but I do like following trends there. usually, if there’s a contraction in the tech industry, it’s starts there. With TSM running at full capacity, I don’t think we have a pending massive recession, m
. Otherwise this would have materialized with cuts in Corp cap-ex spending and TSM would have felt it.

[Author]

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