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Chris L

AT&T Facts

AT&T traded at multi-year lows last week.

Some facts:

1 Over 54B EBITDA in 2020 and in 2021.
2 Net debt is about 3 x EBITDA.
3 Market cap also about 3 X EBITDA (vs inflation adjusted rates at 0).
4 Whatever they are using to invest is to increase earnings.
5 6B/year cost reductions underway.
6 7B/year less dividend payments staying in the coffers.
7 6b/year less interest payments as a result of reduced debt ex WB & improved credit rating (cost reductions, less debt, less dividends).
8 CFO said 8-9B dividends post spin: 8.5B/ 7.14B=1.19$/sh = 6% for Legacy T @ 20$.
9 Share price appreciation on top & above 6%.
10 DISC = additional gravy with Malone, Zaslav steering ship. Malone outperforms Buffet
11 If Exchange, share count drops to 5.35B = 1.5-1.7$ Div/share (6.2 to 7% yield) with lean focused T generating EBITDA of 45B or 8.5$ EBITDA/share based on LTM and 43B less debt. The 6B cost cutting adds 1$ EBITDA/sh.
12 Sell 70% stake in DirecTV @ 15B+ and use another 10B of the 43B debt reduction to repurchase 850m sh dropping float down from 5.35B post-exchange to 4.5B sh and you get 10$ EBITDA/sh (Legacy T has a trailing EBITDA of 45B minus DirecTV contribution). 10$ EBITDA/sh = Additional $$$$$

$T, AT&T Inc. / H1

notes via a user


$VZ, Verizon Communications Inc. / H1

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