Mad About Options: Pick Up the Phone! T, S, VZ - TheStreet TV
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This morning I was scouring through a list of stocks and evaluating their recent performance as the market has taken a downward hit to 8100 points on the DOW. Among those stocks I reviewed was AT&T (NYSE: T) which is down about 10% since late April. I am not too concerned because I know AT&T plans to pay a $0.41 dividend this quarter and this is a stock I like for the long-haul. Despite the recent "C-Rating" seen on Charles Schwab, option traders from TheStreet.com also believe AT&T is worth playing the options game on. I am not entirely sure I agree with Jim Cramer's option strategy, but do agree there is some money to be made playing options on AT&T, as well as owning shares of AT&T.
AT&T's recent announcement to close on the acquisition of Centennial Communications Corporation for roughly $940 in the third quarter will continue to strengthen AT&T's bottom line. Including debt, this deal is valued at $2.8B and was supposed to close in the second quarter of this year when the terms were initially agreed upon in November. The Wall, NJ-Centennial, does not own property in Dallas, so there will be no initial impact to that city. However, the only hiccups will be the integration of C-Level Executives between both companies, and the pending approval of the merger being passed by both the U.S. Department of Justice and and the Federal Communications Commission. The acquisition of Centennial (NASDAQ: CYCL) will broaden AT&T's coverage in the Midwest and Southeast US regions, along with Puerto Rico & the U.S. Virgin Islands. Additionally, AT&T will be gaining Centennial's 1M subscribers.
AT&T is a company that has a bright outlook with dividends currently yielding 6.60% and it also shows solid growth momentum from acquisitions such as Centennial. Furthermore, one should own some AT&T shares and consider purchasing some long-term options for when the markets turn around in the future. Happy Investing!!
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