AT&T on course for $93b / -60% correction?On the above 3 month chart price action has rallied 70% since July 2023 for no reason whatsoever on this loss making company. A phone company picks a finance guru to run a business that relies on creativity. What could go wrong?
Regardless, short term liabilities are almost 2 fold the assets with net income in loss, -$174m last quarter alone. Before consideration of the $146b debt.. how is this business even paying a dividend?! A master of finance this guru is, but let us not question the era corporate America is operating these days. (Boeing says hello.... hell with engineers, what do they know?!)
Despite this the market is bullish.
Morningstar (December 4th, 2024)
“With Room to Sharply Increase Broadband Margins, We’ve Increased Our AT&T Fair Value Estimate to $25”
“Results were solid, with strong wireless customer churn pushing net customer additions”
The Motley fool (November 6th, 2024)
“AT&T has returned its focus to its core operations, and those businesses are steadily strengthening. That, coupled with its debt reduction and rising FCF, makes AT&T look like a worthwhile long-term investment.”
Tradingview.com ideas are mostly all long ideas.. people!
The TA:
On the above 3 month chart:
1) Price action and RSI support breakouts.
2) Regular bearish divergence.
3) Rising wedge breakout, which forecasts the first 40% correction.
4) The larger uptrend channel forecasts the complete 60% correction to monthly support of around $9.
Is it possible price action continues upwards and onwards? Sure.
Is it probable? No.
Ww
