Posts: 1,001
Threads: 89
Joined: Dec 2013
Reputation:
36
Amazing report. Let's see how the board squanders away that money. I'd like to see some debt reduction but that hasn't been their modus operandi lately.
=====
“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
Posts: 165
Threads: 10
Joined: Sep 2015
Reputation:
6
To Dividend Watcher's point, from Seeking Alpha's breaking news on T:
AT&T (T; now down 2.1% after hours) guided to capital spending of about $22B for 2016, and in its Q4 earnings call, CEO Randall Stephenson and CFO John Stephens indicated the company had some work cut out keeping merger integration on track along with other commitments.
****"Over the next few years we want to get our debt levels back to where we're comfortable"**** before talking about a share buyback of any magnitude, Stephenson said, though Stephens noted a key priority: "We're gonna pay our dividends." As for the upcoming spectrum auction, Stephenson was noncommittal but "I haven't been bashful" about grabbing an opportunity for a 2x10 block if it were there, for example.
Posts: 1,388
Threads: 33
Joined: Jan 2015
Reputation:
21
Well I had to dig down deep to find this thread.
I too am a owner and to be honest I was quite happy with their direcTV acquisition, though as me and everyone else (including the management) noticed the debt levels started to get a little higher than what would be ideal.
And now they are looking at buying out time warner company? Current market cap is over 70 billion... Obviously that would be a shares of T and possibly cash deal... but I'm not sure if I like it. What are your thoughts on this?
Posts: 64
Threads: 7
Joined: Feb 2014
Reputation:
3
According to Reuters:AT&T has "Deal in Principle" to buy Time Warner for $85B.
I hope they know what they're doing. Gotta be better than Verizon's purchase of Yahoo.
Posts: 1,863
Threads: 35
Joined: Jan 2016
Reputation:
6
Bad deal and T is going to take on lots of debt and probably headed to $35 or under. I'm glad I sold T a few months back at $43.
Posts: 1,388
Threads: 33
Joined: Jan 2015
Reputation:
21
Terms: Time Warner owners will receive $107.50 per share comprised of $53.75 of cash and $53.75 in AT&T stock. A collar is involved, meaning TWX shareholders get 1.437 shares of AT&T should its average stock price be below $37.411 at closing, and 1.3 shares of AT&T should it be above $41.349 (Friday's close for T was $37.49, and for TWX $89.48).
$107.50 offered for a company that has been hovering at a little under $80 for the majority of the year. I don't mind the buy itself, I think Time Warner is a good company and I've been eyeing them myself quite a few times, but the price seems to be way through the roof.
And half with shares, half with cash... so add another 40+ billion to the debt. Not a big fan of this deal.
Posts: 1,863
Threads: 35
Joined: Jan 2016
Reputation:
6
It is a waste of money and T added a lot of debt in the deal as well. Both VZ and T have hurt shareholders in recent months. Not the same companies I invested in which is why I sold out my postions and instead bought JNJ and DUK. T will be a company with no growth now and linger in that $30-32 range like it did for the previous 5 years. Not good!
Posts: 18
Threads: 5
Joined: Aug 2016
Reputation:
0
With a plan to acquire Time Warner, AT&T is under a lot of pressure.
For dividend investors, this merger is an excellent opportunity to reap the long-term gains and benefit from additional revenue opportunities that AT&T won’t be able to gain on a standalone basis. I think the future looks good for T stock investors.
Posts: 18
Threads: 5
Joined: Aug 2016
Reputation:
0
As investors wait for the regulatory approval for this landmark deal, I don’t see a huge upside move in T stock. This is a time for long-term income investors to relax and ignore the negativity which has clouded the fantastic growth story of AT&T stock. On the other hand, if the optimism for the U.S. economy during the Trump era proves correct, telecom stocks stand to gain too.
