FYI to American Spirit re: VZ
We have a VZ credit card which rebates money on purchases toward payment of our phone bills. We have heavy credit card bills, with two kids in college charging up tuition, food and fun every day, so....we are owed a large rebate every month.
Through the rebate, we get our main home phone line for free. There is enough rebate money unused and leftover every month to also cover our second phone line and my cell phone, but we don't use the rebate money because it's more advantageous for me to continue, at least for a while, to keep the second phone line and cell phone separate from household expenses and write them off as business expenses, at least for the time being.
Bottom line, VZ is willing to give us two phone lines and a cell phone for free as long as we charge enough on our VZ credit card. Does this sound like a marketing plan or a profitable business plan? I dunno, but it sounds like a giveaway to me, and not a real money-maker for VZ....also makes VZ look a little desperate.
Therefore, any due diligence on this stock might need to include a comparison of how much money VZ is making on its credit card program vs. its cell and landline phone program. If a long-distance phone company has to get into the credit card biz to survive, this MIGHT not be a good sign. But what do I know? |
