Until we get more clarity for further resolution to the investigation, it will be difficult for the stock to move forward. Our net view is that we expect it to trade in a pretty tight range now.
The real hard concern I have is that it could devalue the property. I'd like to see it preserved, but not at the expense of the landowner. I've talked with some of my neighbors who would be affected by this and they have some concerns, too.
People are acting like this is a new issue but it is going to be one-for-one so I don't see any pop or decline in the stock -- it will just continue trading under a new symbol.
Though we remain positive on the long-term business model and outlook, we expect concerns over pricing pressure, the back-end-loaded nature of full-year guidance and new product wins to overhang the shares medium term.
Though below our $31 target price, this seems to be a fair outcome for both parties, and eliminates a fair amount of uncertainty for both companies.
As a homeowner, that wouldn't make me very happy.
There's an opportunity for AT&T to be more aggressive than BellSouth has been. The Southeast is among the strongest markets in the U.S.
It's a combination of expectations already having been very high and the stock having rallied ahead of the news.
I don't think anybody knows what's about to hit them.