Several years ago I expressed the opinion that AT&T was poorly run and not a good strategic investment. There was much excitement when they announced their merger with Time Warner. Not one to toot my own horn but AT&T continues to disappoint. The debt has been crushing and without the advice/guidance from outside investors, T would be in worse shape than it is today IMHO.
YTD ATT -20.70%
YTD VTI. +5.19%
1 YR ATT -20.17%
1 YR VTI. +15.51%
3 YR ATT -1.64%
3 YR VTI +43.86%
5 YR ATT +18.69%
5 YR VTI +86.69%
10 YR ATT +82.90%
10 YR VTI +289.80
Merger complete, where’s the beef? Will they continue to disappoint or will they turn it around? The lost opportunity costs continue to increase. Still selling assets to pay down debt, might that help? Looking for answers on why anyone would stick with them?
Below is a must-read before jumping into AT&T. While 96% of the articles over the past decade have painted AT&T's future as bright; unfortunately, the market has disagreed.
AT&T: Technical Breakdown Has Begun Sep. 10, 2020 10:57 AM ET
"A prolonged recession will be quite problematic for AT&T operations, as competition heats up and debt payments remain the same or rise.
Truly weak technical momentum during the summer is warning investors to stay away.
Profit growth is next to impossible with the enormous dividend payout crowding out productive uses of capital in the operating business."
"I rate the stock an Avoid or Sell today. I shorted shares in early September in my diversified long/short portfolio, basically as a hedge against better-positioned long selections in other industries."