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Tuesday, January 24, 2012


Today's weakness in VZ is bringing the stock to oversold territory. So I stated entering the stock.

The first position was at the 50 SMA. A heavier position will be between 36-37.

I am not a fan of the traditional cable companies for 2012 because I truly believe a disruption is coming on the TV Content delivery side of their business via a user friendly a la carte model. But Fios is started from a much lower base, and seeing double digit up take. Basically, the Fios growth should mitigate the disruption effect. (I also think VZ is in a position to add value added services to those who have FIOS and Verizon Wireless, but that remains to be seen.)

1 comment:

  1. I like 'em both because of this:

    10:16 AM Apple (AAPL -0.8%) investors are unlikely to complain about Verizon's (VZ -2.2%) Q4 report (I, II),. Big Red says 4.3M, or 56%, of the 7.7M smartphones it sold in Q4 were iPhones. By contrast, only 36% of Verizon's Q3 smartphone sales (2M out of 5.6M) involved iPhones, as buyers waited for a new model to arrive. 44% of Verizon's retail postpaid subscribers are now smartphone users, up from 39% in Q3. (previously) [Tech]