thoughts??
nytimes.com
Is Verizon Flying Too High Above Its
Valuation?
With its alluring 4 percent dividend and an auro of stability, Verizon Communications has been a stock market star in recent months. Shares in this telecommunications giant, formed two and a half years ago when GTE merged with Bell Atlantic, have jumped 40 percent since the end of September. The stock closed on Friday at $38.50.
To which Susan Kalla, an analyst at Friedman Billings Ramsey in New York, says pshaw. Ms. Kalla, perhaps the sharpest person covering telecommunications at brokerage firm today, says Verizon is, at best, a $28 stock. It is showing no revenue growth, almost no profit growth;in short, its business is eroding, she said.
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Does this look ripe?
Comments please.
tinyurl.com
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