Telecom Titan to Rise Again?

Featuring Colin Gills

Colin Gillis, director of research at Chatham Road Partners, explains why consolidation in the media landscape stands to benefit AT&T. He provides analysis of the telecom industry, and lays out the trade, in this interview with Brian Price. Filmed on June 25, 2018.

Published on
28 June, 2018
Topic
Trading, Technology, Micro
Duration
10 minutes
Asset class
Equities
Rating
18

Comments

  • JD

    Joe D.

    5 7 2018 23:34

    0       0

    In theory, practice and theory are the same.

  • LT

    Lucas T.

    30 6 2018 00:17

    0       1

    Seems that usually the time horizons are so long as to be almost worthless...if it hits your target in a month, you were right, if it hasn't hit it in a year, everyone forgets anyways.

  • MS

    Michael S.

    29 6 2018 03:28

    1       0

    I remember T selling the "bundle" thing back in the .com bubble, and it sounded like a great, conservative, dividend-paying way to play cellular, cable, landlines, etc. It dropped 30-40% anyway, 2000-2003, and then they then "spun off" all those companies, to "fully value" those assets as separate companies. Now they are trying a different bundle, to compete with Google, Verizon, Netflix, Apple, etc.? Hmmm.

    All that said, I typically love buying stocks when the P/E is the same as the dividend yield. That 1/1 ratio is really nice. It can be a really crappy story, with too much debt, and still work out.

  • PP

    Patrick P.

    28 6 2018 18:19

    1       0

    Doppleganger....they are both named "Colin" https://en.wikipedia.org/wiki/Colin_Montgomerie

  • JZ

    Josh Z.

    28 6 2018 17:42

    1       0

    Verizon bought AOL in 2015 on a similar thesis, but hasn’t quite outperformed T by that much. Would like to hear his take on that as well

  • YB

    Yuriy B.

    28 6 2018 11:01

    5       2

    Minimal downside risk? AT&T now has $250 billion of debt. Just because Disney & Comcast are chasing similarly a overpriced asset does not make AT&T's acquisition smart in absolute terms. Maybe AT&T's stock goes up a bit in the short-term, but AT&T is a bloated whale already. Swallowing a few big sharks won't make it healthier in the long-term. As Peter Lynch once put it so succinctly: de-worse-ification.