Playing Defense with AT&T

Published on
April 4th, 2019
Duration
10 minutes

Playing Defense with AT&T

Trade Ideas ·
Featuring David Keller

Published on: April 4th, 2019 • Duration: 10 minutes

David Keller, CMT, president of Sierra Alpha Research, discusses why he likes buying telecom giant AT&T. He reviews four bullish factors for the stock, notes key levels to watch out for and discusses how to make the trade, in this interview with Jake Merl. Filmed on April 3, 2019.

Comments

Transcript

  • JP
    John P.
    5 April 2019 @ 22:50
    My impression is that a lot of the T bearish commentary focuses on the decrease in equity price over the prior two years and the complete lack of equity growth over the prior 5 years relative to the S&P. Those who bought in over the last 6 months don't seem nearly as negative.
  • DP
    Devraj P.
    5 April 2019 @ 01:48
    No mention of debt in rising interest rate environment
  • TH
    Thomas H.
    4 April 2019 @ 23:54
    Having dealt with their customer service, I would never buy AT&T. TV and home phone are going out. They will become an internet service. They benefit from the mergers, but they do not have enough service personnel to maintain their infrastructure. They will be under wage pressure. Interest rates will eventually go up. How many people love their cable company?
  • T
    Thomas .
    4 April 2019 @ 18:25
    I like Keller. Bring him back.
  • JT
    Jason T.
    4 April 2019 @ 17:47
    Nice to see a trade recommended that I'm already in. Debt to equity is actually low compared to VZ, S. My stop is basically where I entered, below the big inverse H&S neckline.
  • HJ
    Harry J.
    4 April 2019 @ 16:41
    As long as they pay the dividends I’m holding. It’s T not GE with their excess’s. Current yield is what matters in the long run. When one reaches for the last biscuit you often get something you don’t want. I’m mindful of the old saying “ pigs get fat and hogs get butchered.
  • JB
    Joe B.
    4 April 2019 @ 13:26
    Wouldn’t it make more sense to go with a basket of defense vs. relying on a potentially value trap with this crazy debt?
  • SM
    Stephane M.
    4 April 2019 @ 09:59
    How can we recommand AT&T without talking of all the debt on it's balance sheet?!?!??! It's not for me!! I wish you good luck ;-)
    • JA
      John A.
      4 April 2019 @ 10:54
      My first thought, also. AT&T is rated BBB. What happens during any run-of-the-mill recession? Too many stock managers are ignoring the bond market. These are the same company that issues stock also issues these BBB bonds! The bulls-eye last time was in the real estate market, and look at the damage done to the stock market. This time, the bulls-eye is squarely on the stock market, and that 50% of corporate debt that is rated BBB. Good luck with your trade.
    • SJ
      Sy J.
      8 April 2019 @ 00:11
      AT&T is no longer for widows and orphans. I believe they are the next Sears.