Company Overview Verizon Communications offers communications, technology, information, and entertainment products and services to consumers, businesses, and government entities worldwide. The company, incorporated in 1983 in New York, was formerly known as Bell Atlantic Corporation and changed its name to Verizon Communications in June 2000. Investment Thesis The dominant theme for the major network providers … Read more
In 2009, our original investment thesis centered on the fact that Verizon Wireless is the premier wireless carrier in the U.S. and constitutes a large portion of Verizon’s equity value. However, in 2009 it appeared that the market was valuing Verizon as if were a defensive, old line utility company paying out a nice dividend. … Read more
Monday”s Wall Street Journal contained an article in the paper”s Heard on the Street column titled “Cash Is Turning Into a Hang-Up for Verizon”. The article touched upon the challenges Verizon faces in financing its dividend beyond 2011. Verizon currently pays a dividend of $1.90/share for current yield of 6.4%. With 2.84 billion shares outstanding, … Read more
For an investor, the gap between the market”s appraisal and the company”s underlying fundamentals can last a long time. As Philip Fisher once said, вЂ�It is often easier to tell what will happen to the price of a company”s stock than how much time will elapse before it happens». Verizon Communications reported quarterly and annual … Read more
The market appears to be valuing Verizon as if were a defensive, old line utility company paying out a nice dividend. Verizon is only up 10% off its year-to-date low on March 9 versus +60% for the S&P 500. At current prices, the stock trades for less than five times cash flow and yields 6.5%. … Read more