Investing Topics: Telecom Stocks

It’s no surprise that both the US and China’s political rhetoric is ratcheting up as the US approaches November elections. COVID-19 recriminations are just the latest catalyst for worsening what were already tense relations. Nonetheless, I’m staying with three Chinese essential service stocks.

AT&T Inc’s (NYSE: T) Q1 results answer two key questions about COVID-19 fallout and the telecom giant's resiliency.

Around the world, people are staying home to combat the deadly spread of COVID-19. That’s catastrophic for certain industries but, as always in capitalism, there are also winners.

Coronavirus (COVID-19) isn’t finished inflicting pain and suffering, particularly on China, and the global economic cost is only beginning to be felt. But one Chinese industry seems to still be moving full-steam ahead.

Cable companies still enjoy success in the B2B market. But these results raise a critical question for the rest of US communications: Who are they taking commercial customers from?

5-G communications networks promise to unlock a whole host of previously unimaginable applications as they’re rolled out over the next several years, and telecoms around the world are claiming a “lead” over rivals in the race to deploy them.

Trial testimony has concluded in the court challenge of the proposed merger of two US wireless giants and we expect an early 2020 close. The real issue is whether management will be able to deliver on lofty expectations.

The key takeaway from third-quarter results: The Big Three of US communications are still building wealth and selling cheaply.

Can the sum of the parts actually be greater than the whole? Shareholders of AT&T Inc (NYSE: T) will get a chance to find out, now that activist investor Paul Singer’s Elliott Management has taken a $3.2 billion stake in the communications giant.

Despite good news, several essential services companies have seen a 10% drop so far in 2019. The reason: politics. Our view for some of them is investors are over-estimating risks and underpricing their strengths.