AT&T Message Board - Msg: 1375845

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : AT&T

T 25.82

-0.1%

Nov 26 3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: OldAIMGuy who wrote (340)	5/9/1997 9:25:00 PM
From: Louis Cristiano	of 4298

To all: AT&T down to $16.50 ??? Sound unbelievable? Consider the following scenario. As you read this, keep in mind that a few years ago AT&T had a monoply on the long distance market. Today, they're struggling to hold on to 50% of the LD market. The following is an extrapolation of a future stock price based on AT&T's past market position and current price to earnings (p/e) ratio. These are the current p/e's for the following companies on 5/8/97: AT&T.....9.3 (p/e). MCI ....21.8 (p/e). Sprint .....17.2 (p/e). If a p/e ratio is a reflection of the markets belief in a company's future prospects and position, then based on the above p/e's of AT&T, MCI and Sprint, the future market share of the long distance market would look like this: AT&T... 19.25%. MCI ....45.13%. Sprint .....35.61%. If an equal value were given to the market position of these three companies based on the above assumption, this is how the future stock price would look: AT&T......$16.50. MCI ....$38.75. Sprint ......$30.63. Hard to believe? I find it harder to believe that the current lack of leadership is still entrenched at AT&T when it had a monoply of the long distance market and let it slip to 50%. Could that market share continue to slip to 19.25%? That's what the current depressed p/e ratio is saying loud and clear. Will AT&T's dividend buoy the stock price? Possibly, if it's not cut. Is AT&T a great short? Well, AT&T's stock price is down nearly 26% since Jan. 1. It's direction is unmistakable. If you're a shareowner and concerned about what's happening, here is AT&T's Investor Relations website: att.com You can email them a message at this website. It won't do any good, but it'll give you a chance to blow off some steam.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next