Stockchase Opinions

Paul O'Neil SBC Communications SBC-N HOLD Sep 20, 2002

One of the best regional Bells in the US. No debt problems. Being hit by business slowdown.
$23.200

Stock price when the opinion was issued

Telecommunications
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WEAK BUY
Phone companies are suffering from competition. Revenue growth is meager, but has a nice dividend.
TOP PICK
4% dividends. A solid company. Creating a lot of cash flow.
DON'T BUY
Generates tremendous amounts of free cash flow.Prefers Verizon.
PAST TOP PICK
(A top pick July 28/03. Down 5%.) Big cap telco is the one area that hasn't moved. Trading at 10 X next year's earnings. 4.7% dividend. Still likes.
DON'T BUY
Has a good dividend yield. Fair market value is below the present price. Could drop to $19/20.
BUY
3 good reasons to buy are strong dividends, coming off the bottom, and US currency devaluation. Had been oversold. Very steady revenues. Limited growth.
DON'T BUY
Good dividend Stock. Expect the wireline communications companies are going to go through a few rough periods. Doesn't expect much growth.
TOP PICK
A yield play. 5.1% gives you 10% return.
HOLD
About a 5% yield. Telco's are finding it hard to make money, so stocks have not grown much. Will be a survivor.
DON'T BUY
Like BCE (BCE-T) in that it just crawls along. Thinks it pays a high yield, but at the end of the day it is above what he thinks is its fair value. His model price is $23.26. A 4% differential. However, the model price has gone up in the last 2 months.