Investing Topics: Telecom Stocks

AT&T Inc (NYSE: T) was the only Conrad’s Utility Investor Portfolio pick to report numbers last week. Takeaway one is quite positive: The results followed closely those of arch-rival and co-Big Two US communications company Verizon Communications (NYSE: VZ).

We’ve yet to see third quarter results for most of the US communications industry. But it’s not too soon to ask what happened to the assertion the Big Two US Telecoms — AT&T (NYSE: T) and Verizon Communications (NYSE: VZ) — would be skewered by rivals’ cut rate pricing and a cheaper iPhone.

You had questions about utility and telecom stocks, we had answers. 

In the October issue, I added four stocks to the Conrad’s Utility Investor model portfolios.

Shrinking traditional business and hefty debt have made wireline phone companies a reliable income source for short sellers in recent years. The game, however, has moved on.

Thus far, my strategy has been to populate the three Conrad’s Utility Investor Portfolios as quickly as I can with high-quality fare, without paying too much.

Who says the bond market is washed out? Certainly not Verizon Communications (NYSE: VZ).

The company’s record $49 billion bond sale has not only locked in financing for its $130 billion buyout of Vodafone Plc’s (London: VOD, NYSE: VOD) minority stake in Verizon Wireless. But it was actually doubled, eliminating the need to raise funds in Europe.

Forget what you’ve read about iOS7, iPhone 5C, China sales and the rest of the various and sundry device hype. Put your money in AT&T (NYSE: T), not Apple (NSDQ: AAPL).

There was plenty to talk about this week from telecom to utilities to energy MLPs.

Here’s the news from our Portfolio holdings over the past week.