Out Fox The $treet

AT&T is exploring selling their video gaming unit for a reported $4 billion. The company has $154 billion in net debt so the cash isn't as meaningful as the lost revenues from WBIE. The deal value is an apparent low valuation compared to public gaming stocks such as EA or Take-Two Interactive Software. The stock will suffer from the constant hit to revenues per share while the 6.8% dividend yield is covered from the extra cash. Due to the massive scale of  AT&T  ( T ) following the buyout of Time Warner, the company has looked for non-strategic asset sales to lower massive debt levels. One new target is the video game business from Warner Bros. due to the multi-billion valuation estimate thrown around by analysts. Read the full article on Seeking Alpha.  Disclosure: No position. Please reveal the disclaimer page for more details. 

AT&T took a nearly 10% hit from the recent highs due to negative analyst calls. The stock will benefit from up to $45 billion in share buybacks and debt repayments from 2020 to 2022. My $42.50 price target values the stock at a 2022 EV/EBITDA multiple of only 6.9x. A few negative analyst calls has  AT&T  ( T ) suddenly down $3 from the recent yearly highs near $40. While  my views  on the financial projections of the company are similar to those of these analysts questioning revenue growth potential in entertainment and the new SVOD service, my view on the stock valuation is where the disagreement exists. The stock is cheap on this dip and my price target is still firmly up at $42.50. Read the full article on Seeking Alpha.  Disclosure: Long T. Please review the disclaimer page for more details. 

Stocks to watch on Monday: AT&T (T)  - Not convinced on the financial projections for 2022, but do like these commitments: - no major acquisitions for 3 years. - pay off 100% of acquisition debt from TW (should be more) - 50%+ of post-dividend FCF used to retire stock (would prefer more debt payments). The stock is up nearly 5% on these promises along with financial projections of a 2022 EPS target of $4.50 to $4.80. Naturally, AT&T would surge, if EPS grew up to $1 during 2021 and 2022.  Fitbit (FIT)  - the stock continues to rally as the fitness tracking company slowly moves into the medical device market. Investors only have to compare the valuation of Fitbit to  Garmin (GRMN)  to see where the stock could've headed in just making the current company profitable. The medical device segment should lead to revenue growth and the ability to capture an even higher forward P/S multiple.  Spotify (SPOT)  - the music streaming and ...

AT&T trades back near the yearly lows at $29. The stock offers an incredible 6.8% dividend yield. Analyst meeting on Nov. 29 should provide a catalyst for the stock. Market will soon shift focus to $25 billion FCF focus. While my   investment thesis   has constantly slammed on the decisions of   AT&T ( T ) management to shift business away from building the best wireless network, the stock has turned into a bargain due to strong free cash flows. At $29, AT&T offers a nearly 7% dividend yield while recently backing incredibly bullish financials for 2019. The ongoing stock weakness remains an opportunity. Read the full article on Seeking Alpha.  Disclosure: Long T. Please review the disclaimer page for more details.   

AT&T launched their rebranded digital ad business. Xandr is only estimated at 3% of the total revenue base. Any success of Xandr provides upside to my previous $40 base case target. The business is off to a troubling start with AppNexus CEO leaving. Last week,   AT&T   ( T ) ushered in the aggressive move into advertising. The wireless giant hopes to more effectively compete in the advertising sector against the tech giants by collecting more data from customers via various video and wireless connections. Unfortunately, the   newly created Xandr   is more likely to resemble the failure of Oath from   Verizon Communications ( VZ ). Read the full article on Seeking Alpha.  Disclosure: Long T. Please read the disclaimer page for more details.   

AT&T warned on Q3 results due to hurricanes. The company provided a secondary nugget that the pay-TV business faced even greater cord-cutting pressure. Investors should expect 2018 EPS cuts. Hidden within a  warning  for Q3 earnings,  AT&T  ( T ) detailed more weakness in the pay-TV segment. My research previously  warned investors  of troubles ahead as the NFL protests would only further hit a segment in decline. Read the full article at Seeking Alpha.  Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

AT&T reported Q3 numbers that fail to prove out the benefits of the DirecTV deal. The bundling of services has failed to add the most important subscribers. The large debt load makes the synergies in the Time Warner deal a must and the outcome of the DirecTV integration highly questions a positive outcome. In the midst of agreeing to buy Time Warner (NYSE: TWX ), AT&T (NYSE: T ) rushed out  Q3 earnings  a few days early. The biggest issue is that the synergy benefits from DirecTV aren't showing up in the results. Read the full article at Seeking Alpha.  Disclosure: No position. Please review the disclaimer page for more details. 

According to a survey conducted by Bernstein ( via Benzinga), most buy-side analysts expect the deal between AT&T (T) and Time Warner (TWX) to eventually obtain approval. An amazing 84% of the participants in the survey expect AT&T to close the deal, yet Time Warner trades far below the $107.50 offer price.

As reported on Friday, AT&T (T) agreed to purchase Time Warner (TWX) for $107.50 per share. The deal brings together a distribution leader in the form of the wireless network operated by AT&T and the content owned by Time Warner. The deal could be a big victory for the Net Payout Yields model on Covestor where Time Warner has been a long-term holding. The company has long repurchased a large portion of the outstanding stock while paying a decent dividend that recently yielded nearly 2%. The big question is where the stock will trade on Monday with 50% of the value based on whether AT&T breaks the downside collar. As well, the market will likely fear whether the regulators will approve this merger of mega-media giants. Ultimately, a decent price on Monday provides an opportune time to exit a long-term position at the top. Here is hoping to a big pop at the start of trading. Below are links to more detailed reports on my opinions on the merger. WhoTrades Time Warn...

AT&T easily slid past analyst EPS estimates that failed to incorporate merger benefits. The wireless giant saw a few negative trends surface that might cap future growth. The stock is likely to plateau at the current level where shareholders collect a 5% dividend yield while waiting for the next catalyst. Q1 results  from AT&T (NYSE: T ) back up my  investment thesis  that the company would continue to push EPS towards $3 on the backs of the DirecTV merger. The theory back when the stock traded around $32 throughout 2014 and most of 2015 was that the stock was extremely cheap with plenty of catalysts. Now with AT&T trading at $38, the valuation equation isn't as clear with user growth slowing and synergies somewhat in place. Read the full article on Seeking Alpha.   Disclosure: No positions mentioned. Please read the disclaimer page for more details.

AT&T easily surpassed Q3 2015 EPS estimates despite massive confusion regarding the revenue numbers. The market continues to not appropriately value the stock based on synergy benefits that will kick in over the next year, whether or not the company achieves the ultimate $2.5. The stock is cheap while paying a 5.6% dividend for investors to wait on synergy benefits. The Q3 results for AT&T (NYSE: T ) were a mass of confusion with the inclusion of DirecTV for only a partial period. The company came out early and pointed out that analysts were miscounting DirecTV revenue while previously changing how commercial satellite subscribers were counted. At the same time, the shift in video and broadband revenues from legacy AT&T to a new segment mingled with DirecTV revenues and expenses made quarterly comparisons difficult. Read the full article on Seeking Alpha. Disclosure: No position mentioned. Please review the dis...

AT&T has questionable prospects for achieving the targeted DirecTV synergies. Even coming up short on the synergies still leaves the company on track for pro-forma EPS estimates of $3. The stock remains exceptionally cheap and offers a 5.8% dividend yield. Back on September 16, AT&T (NYSE: T ) CFO John Stephens spoke at the Goldman Sachs Communacopia Brokers Conference. The main crux of the conversation with the Goldman Sachs analyst was regarding the integration and synergy benefits of the DirecTV merger. Read the full article on Seeking Alpha. Disclosure: Long T. Please review the disclaimer page for more details. 

Summary AT&T reports Q4'14 earnings. Investors should continue avoiding the stock. The original investment thesis remains intact with margins under extreme pressure. The quarterly results of AT&T (NYSE: T ) were only in line with the already reduced expectation of analysts. The giant domestic wireless provider produced record smartphone gross adds and upgrades while watching margins plunge. The net effect remains a stock that is likely to continue churning in the low $30s range while investors collect a solid 5.7% dividend yield and wait for the impact of the wireless auction. Read the full update at Seeking Alpha. Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

  Summary AT&T results are starting to struggle as the domestic pricing war unfolds. The company reported lower earnings over the prior year, and missed analyst estimates. The high dividend yield is not attractive enough to overcome the domestic pricing pressures.  In what shouldn't be a huge surprise to investors considering the pricing wars in the domestic wireless market amplified by Sprint back in August, AT&T (NYSE: T ) reported Q314 earnings that missed analyst estimates. The domestic telecom giant faces a wireless market where Sprint (NYSE: S ) and T-Mobile (NYSE: TMUS ) are suddenly battling for subscribers via aggressive pricing plans.        Read full article at Seeking Alpha.      Disclosure: No positions mentioned. Please review the disclaimer for more details.

A couple of notable trends are making investing in the domestic wireless space a concern. The stocks trade at multiyear highs and a pricing war triggered by T-Mobile  ( NYSE: TMUS     ) is causing average revenue per user, or ARPU, to decline -- at least in the case of AT&T ( NYSE: T     ) . The combination usually doesn't go hand in hand , especially considering the domestic market is virtually saturated with users, causing Verizon Communications  ( NYSE: VZ     ) to struggle with customer additions since it hasn't entered the pricing wars. Any pricing war should always alert investors to pending stock losses, but with AT&T trading sideways for nearly two years now do investors really have cause for concern? Read the full article here . Disclosure: Long T. Please review the disclaimer page for more details. 

After holding a stock for a few years, no better exit opportunity exists than unloading the stock on a buyout with a nice premium. In the case of DirectTV Group ( NASDAQ: DTV     ) , the company's stock has nearly doubled in the last couple of years and the gains are attracting competition. The purchase price of $95 by AT&T ( NYSE: T     ) would provide an ideal exit point from an investment in the leading satellite television provider. Exiting a position is always tricky, especially for one that has worked extremely well. The stock of DirectTV Group traded below $45 as recently as the middle of 2012. With the company's stock now worth nearly $42.5 billion with it trading around $85, it might have peaked... especially with competition heating up from AT&T ( NYSE: T     ) and the recently proposed Comcast ( NASDAQ: CMCSA     )   and Time Warner Cable ( NYSE: TWC     ) merger. Read the full article ...

Earlier this week, AT&T ( T ) reported Q4'13 earnings that generally disappointed the street. From low wireless subscriber additions to concerns about cash and empowered competitors, the second largest domestic wireless provider got hit hard initially. Ironically though, the stock snapped back on Wednesday to finish virtually even with the large 1% losses in the major averages. AT&T is the classic example of a difficult to value large cap. The company is embroiled in a new war for 4G wireless network supremacy with Verizon Wireless ( VZ ) and facing pricing pressure from suddenly viable Sprint ( S ) and T-Mobile ( TMUS ) . Read the full article at Seeking Alpha. Disclosure: Long T. Please review the disclaimer page for more details. 

After another quarter of reporting huge stock buybacks, does AT&T (NYSE: T ) provide the ultimate net payout yield (NPY)? The telecommunications, and specifically domestic wireless, giant already pays a 5% dividend yield and is now offering a huge buyback yield following a year of buying massive amounts of its own stock. For those not familiar, the NPY yield is the combination of the forward dividend yield and the trailing more » Disclosure: Long CTL and T. Please review the disclaimer page for more details.