Hi Tiger,
No and yes.
Solid cash flow, and not over discounting their superior network will maintain their oligopoly advantage.
I have been a Direct TV subscribers for years. That includes HBO which has now morphed into a no extra charge HBO MAX.
I have read all of the naysayers about T's excessive debt,and failed cable TV subscribers. That doubt has extended to their growth of HBO Max.
I can now tell you that my subscription of Direct TV and HBO MAX s ongoing and the now almost monthly release of a new movie for free, is very enjoyable.
Would I go to the Movies and buy overpriced popcorn to see Mortal Kombat. Nope never.
Did I watch the new movie and enjoy seeing a movie I'd never pay to see? YOU BET!
I think the HBO MAX is a subscriber winner and surely makes my subscription very sticky.
I did not have that opinion before the HBO MAX launch, but after seeing Mortal Kombat, Greenland, Wonder Women, Justice league, Super Man and Louis, King Kong vs. Godzilla are all movies I'd never go to a theater to see, but have had an enjoyable evening watching ALL FOR NO EXTRA EXPENSE.
IMHO it is a subscriber grower with very little expense.
HBO MAX is a winner to me.
There are so many nay sayers on T and its debt.
I suspect a lot of the naysayers writing articles are hit jobs, by funds wanting to scoop up high yielding dividend paying stocks.
Keep in mind that T HAS A HUGE COLLECTION OF ASSETS, that are not essential core assets and as the market rewards their value, T will reallocate those resources over a long term into debt reduction.
I'm long and gladly receiving the 6% plus dividend, expecting it to become an even more secure long term dividend payer.
I have owned T for several years and now have a profitable position, that is yielding a very nice return.
When more people confirm what I'm enjoying T will be in the lower 40's and pay a solid dividend that will once again grow.
Debt reduction is still their focus IMO as well if should be!
T's 5G and fiber will be superior products just as their First Net has proven to be. T mobiles spotty coverage is a joke in many rural areas. Verizon is the only real competitor and they have taken on a lot of debt as well.
These Oligopolies will not be stripping their fees in the future.
They all need every bit of their cash flow to build out their systems.
Hope that helps!
Bob |
