Scuttlebutt investing free#

In the following sections I will explain why. Nevertheless, to the informed observer, these fears seem vastly overblown.

Scuttlebutt investing free#

These appear to be a legitimate gripes due to the fact the annual guidance calls for $16 billion in free cash flow ('FCF') and rates are on the rise. This is due to the company reporting a mere $1 billion in free cash flow for the first quarter and the heavy debt load. What's more, the bears are now out in force declaring a dividend cut is back on the table. The stock has sold off after reporting Q1 2023 earnings, as I anticipated. I wrote an article regarding my thesis at the time 'AT&T: Dogs And Cats Living Together, Mass Hysteria!' As it turns out, it was a prescient call once again. It just so happened I got lucky by top-ticking the stock just before the next big drop. If I have a stock run up 30% in 4 months' time, there is a much higher probability they will dissipate just as fast. One other thing I've learned over the years is that capital gains seem to come and go at the same speed. What's more, the macro setup heading into the next earnings announcement was extremely similar to the first drastic drop in the stock back in 2022. A plethora of newly converted AT&T bulls entering the fray was a red flag that the stock may be nearing a top. Once again, this alerted me to the fact being long at this point may not be advisable. AT&T Current ChartĪfter an extraordinary 30% gain in 4 months, the bulls started coming out of the woodworks. Luckily, after my bottom tick buy back in October of 2022, the stock ran up very quickly. The key is doing the proper amount of due diligence coupled with a solid risk management strategy. What this means is the herd is not always wrong. As my father would say, sometimes you get trampled when going against the herd. It's not always advisable to go against the herd. Nonetheless, I have learned from my 30 years of experience, investing in the stock market is ultimately a counterintuitive endeavor. I wrote an article detailing my thesis, 'AT&T Stock: Be Fearful When Others Are Fearful.' The stock was beaten down due to reporting lower free cash flow numbers. This was when fears of a dividend cut were rampant as well. I initially bought into AT&T for my Seeking Alpha Income Investing Group back in October of 2022. Yet, I am still in the retirement portfolio growth phase and, therefore, take advantage of stock ' mis-pricings' when I see them. Now, if you are older and have already built up a retirement nest egg you feel comfortable with, you probably won't and shouldn't be quite as active. I am in the process of building up my retirement portfolio at 59 years of age. Let me make one thing clear, I am not a 'trader.' I am an income investor. My in-depth knowledge of the company coupled with my 30 years of experience in the markets has allowed me to move in and out of the stock successfully over the years. I feel I have somewhat of a sixth sense when it comes to the company. I actually audited and consulted for AT&T back in the late 90s. I have been investing in AT&T for decades. My Current TakeĪfter the dramatic drop, AT&T is back on my watch list, believe it or not. Before I get into the gist of the article and address whether or not I believe the dividend is in danger, I want to clarify my current thinking on the name. The telecom giant's 10% drop after reporting last quarter's earnings was akin to a big pot of honey for the bumbling bears. On top of this, the nattering nabobs of negativism are back out in force.

( NYSE: T) dividend is in danger of being cut.

Rumors are once again swirling that the AT&T Inc.