AT&T Review - In Honor of the iPhone Release

As someone who works at AT&T (on contract) and has been beaten over the head with the iPhone blitz even more than the rest of the non-AT&T/Apple world which has suffered enough, I figured I should throw my two cents out there about AT&T (NYSE:T).

Before even glancing at the T chart, I started with the fundamentals. T has a trailing p/e of 21.16, a forward p/e of 13.45 and a PEG of 1.57. That’s a good start compared to T’s main competitors. Most of which have a trailing p/e in the same range, but all of which have a higher PEG. Cash flow is good and should improve with new releases like iPhone and other goodies T is baking still. Even the shorts are in check with only a 2.2 short ratio. I’d rather have some shorts than none and too many make me think I’m missing something. Those guys tend to know their sh1t.

Easing towards the chart, I dropped by Schaeffer’s to see they have rated T a 7 out of 10. That’s pretty good these days as I’ve been finding a lot more lower ratings on their site recently. Finally, when I look at the chart I’m reminded what a steady company T has become. Look at the attachment below and you’ll see a stock that has a very defined trading channel and has just moved above the mid-point line that has occasionally been a floor or ceiling. In addition, a couple of days ago T moved up over its 10, 20 and 50 day moving averages to tie its 5 year high from a few weeks ago. The difference this time is T isn’t hitting its ceiling yet and should go a little higher before topping out again. T is too big of a company to be catapulted or pummeled for one new product like the iPhone, but it is just one more reason T stays so steady.

I’m going to have to wait for T to pull back to the lower side of its channel before I pull the trigger, but think this might be one of those rare times I BUY a call. The stock is just too steady to keep missing out on these gains. I thought about a naked put, but the premiums aren’t worth it.