Yes that is entirely correct. In order for AT&T's dreams to become a working reality, a HEAP of CASH is an understatement. I believe AT&T is in a terific position to take advantage of the worlds communications (again), but the amount of CASH needed will be so tremendous that AT&T is even worried. As companies expand and aquire to keep up with the times is vital, this endeavor could be TOO MUCH for AT&T to tackle. If there is a RUMOR about AOL, I am Very Confident that it would be only a PARTNER relationship, as there is NO way that AT&T could buyout AOL, just no way!!
Since AT&T is not valued as an Internet company in anyway, this could be one of their goals. At one time their LD business is their bread and butter and where the majiority of their revenue came from. Now they have LESS than 50% of this mkt. Look for AT&T to sell other assets very soon!! The question is the stock overvalued. I know many of you will say NO right off the bat, but after really doing some DD, asuming AT&T is a BROADBAND company which I feel is a great and NEW way of valuing it, the stock may be a tad overvalued until they have a better handle on their operations. I am Long AT&T and will be holding this position for at least 5 years, as I feel that the FCC will once again Regulate AT&T.
$Mogul |
