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ptrjon
Registered: Dec 2008
Posts: 47 |
11-06-09 05:14 AM
I like VZ. It's a huge company with ironclad cash flow, strong earnings that are growing, market share increasing, and a decent enough balance sheet. Factoring in the numbers, I think it's worth $35 a share, but it keeps hovering in this 28-32 range. Any thoughts on why? Anypone bearish on it?
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mister_doodi
Registered: Mar 2007
Posts: 478 |
11-06-09 07:12 AM
It'll get up there eventually. VZ is not sexy enough, unlike BAC or AAPL, to attract buyers. VZ didn't exactly come out of the last recession so hot either. Amazing dividends and near the 10 year lows; you can't complain much.
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ptrjon
Registered: Dec 2008
Posts: 47 |
11-06-09 03:10 PM
I made my initial investment around April. I've actually done really well with the buy-writing on this one... it's in my Roth IRA and my 'cost-basis' with options income included is about $25.50 per share, and I hope to hold it for years. I don't have a call written against it, and I've been hesitant because I really feel like this is ready for a $1- $2 rally. patience, patience patience...
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lindq
Registered: Mar 2002
Posts: 1948 |
11-06-09 04:59 PM
Quote from ptrjon:
I made my initial investment around April. I've actually done really well with the buy-writing on this one... it's in my Roth IRA and my 'cost-basis' with options income included is about $25.50 per share, and I hope to hold it for years. I don't have a call written against it, and I've been hesitant because I really feel like this is ready for a $1- $2 rally. patience, patience patience...
IMO, VZ and T are going to have serious problems facing increasing competition in wireless. And wireless has been their main base of support as individuals and businesses have been pulling their landlines for the past few years.
The rates for wireless are going to follow the same path as the rates for long distance and local calling. Down...down...down.
So where is new revenue going to come from? I don't see it.
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ptrjon
Registered: Dec 2008
Posts: 47 |
11-06-09 05:52 PM
VZ revenues
2008 - 97,354.00
2007 - 93,469.00
2006 - 88,182.00
2005 - 69,518.00
I pulled these off of google finance. VZ made about 98Bil in revenues last year, which comes down to about $300/year for every american man woman and child. VZ and Aapl are showing us that there is A LOT of money to be made in wireless. The majority of VZ's earnings come from wireless, and while their FiOs is marginally profitable now, I believe it will be very profitable in 3 years when they spend less on advertising and growing the network. VZ has made itself the largest wireless provider in the world, and they are slowly but surely taking market share from Comcast. And given their revenue(and earnings) growth, I don't see any big reasons why this trend is going to change.
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