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Leading the market headlines to kick off a new week is a letter from activist investment firm Elliott Management to AT&T (T - Free Report) , in which the firm owns 1.2% of the telecom giant’s market cap, or $3.2 billion. Though details are fuzzy, Elliott is vying to have AT&T’s board of directors restructure its businesses, which Elliott calculates would generate share price gains of 65%.
In what is being advertised as a “value-creation opportunity,” Elliott speaks of AT&T — which bought media major Time-Warner’s assets for $85 billion in June 2018 — as being “deeply undervalued.” Though shares of the Zacks Rank #3 (Hold)-rated company have swung up 22% year to date, this was from a multi-year crater in share price that bottomed the last week of December last year.
Would paying down its significant debt be the main crux of a new plan from Elliott? Its founder Paul Singer has specialized throughout his career in making distressed-debt acquisitions. Perhaps a plan to sell off assets like DirecTV, and/or attempt to wring significant revenues out of Time-Warner — which owns CNN, Warner Bros. film studios and HBO — is more what the investment firm has in mind. We’d like to hear from John Stankey on this matter — he has been running the WarnerMedia wing of AT&T since that acquisition took place.
Shares of AT&T had been up as much as 10% on the news in today’s pre-market. They have since simmered to roughly +5% a half hour before the opening bell.
Trade War Having Negative Affect on China
Chinese Imports fell 5.6% for the month of August, according to a report from Beijing released yesterday. Exports to the U.S. fell even further, down 16% on the month, with Exports overall down 1%. Imports from the U.S. sank 22.4%. This marks the fourth straight month of falling Import & Export data out of China.
Analyst had been expecting something of a pop in monthly trade data, but it would appear the takeaway is that the trade war with the U.S. is having a heavier affect on the world’s second-largest economy that originally surmised. In addition, more support is expected from the Chinese governments to free up liquidity; on Friday, capital reserve requirements were loosened for the nation’s banks.
All this comes before the latest ratcheting up of tariffs on both sides of the Pacific a week ago; if we think things are bad in this data now, just wait until future tariffs hinder trade activity.
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Image: Bigstock
Elliott Mgmt Has a Plan to Grow AT&T (T) by 65%
Monday, September 9, 2019
Leading the market headlines to kick off a new week is a letter from activist investment firm Elliott Management to AT&T (T - Free Report) , in which the firm owns 1.2% of the telecom giant’s market cap, or $3.2 billion. Though details are fuzzy, Elliott is vying to have AT&T’s board of directors restructure its businesses, which Elliott calculates would generate share price gains of 65%.
In what is being advertised as a “value-creation opportunity,” Elliott speaks of AT&T — which bought media major Time-Warner’s assets for $85 billion in June 2018 — as being “deeply undervalued.” Though shares of the Zacks Rank #3 (Hold)-rated company have swung up 22% year to date, this was from a multi-year crater in share price that bottomed the last week of December last year.
Would paying down its significant debt be the main crux of a new plan from Elliott? Its founder Paul Singer has specialized throughout his career in making distressed-debt acquisitions. Perhaps a plan to sell off assets like DirecTV, and/or attempt to wring significant revenues out of Time-Warner — which owns CNN, Warner Bros. film studios and HBO — is more what the investment firm has in mind. We’d like to hear from John Stankey on this matter — he has been running the WarnerMedia wing of AT&T since that acquisition took place.
Shares of AT&T had been up as much as 10% on the news in today’s pre-market. They have since simmered to roughly +5% a half hour before the opening bell.
Trade War Having Negative Affect on China
Chinese Imports fell 5.6% for the month of August, according to a report from Beijing released yesterday. Exports to the U.S. fell even further, down 16% on the month, with Exports overall down 1%. Imports from the U.S. sank 22.4%. This marks the fourth straight month of falling Import & Export data out of China.
Analyst had been expecting something of a pop in monthly trade data, but it would appear the takeaway is that the trade war with the U.S. is having a heavier affect on the world’s second-largest economy that originally surmised. In addition, more support is expected from the Chinese governments to free up liquidity; on Friday, capital reserve requirements were loosened for the nation’s banks.
All this comes before the latest ratcheting up of tariffs on both sides of the Pacific a week ago; if we think things are bad in this data now, just wait until future tariffs hinder trade activity.
Mark Vickery
Senior Editor
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Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>