Stock Analysis: AT&T (T)
AT&T (T), as you probably know, is a telecommunication services and products company. They primarily offer internet and phone services, among other things. On Friday, AT&T announced that they would buy Dobson Communications Corp. for $2.8B.
Typically, the buyer’s stock will fall in price following an acquisition because they have taken a risk and paid a premium on the share price of the purchased company. It is not until the combined companies (through “synergies“) have proven that they are worth more than their individual prices combined (”sum of the parts“) that the buyer’s stock really goes up as a result of the buyout.
Furthermore, AT&T has had a spotlight in the news following the Apple iPhone release. There were initial problems with activating the iPhone, but the situation seems to be improving.
Key notes:
- AT&T is oscillating in a trading range between 38.44 and 41.50.
- Note that the 50-day moving average is half way between the top and bottom of the trading range.
- MACD crossover is bullish.
Price is currently at the high of the trading range. Look for a breakout and a big move up or for price to head back down to support at 38.44.