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After that it gets messy & ugly.
Triple bottom if you go back a year
Are we bouncing off that chart bottom? Looks like a mid-term double-bottom
Capitalism demands a company to "follow the money" in order to earn more for its shareholders. Capitalism--as a way of doing business--is in a race right now to hire and keep employees to help them do this.
CRT--like it or not--and perhaps twisted in its soul--is a vehicle to help this goal. Once the goal is achieved, and the employees understand that as VZ succeeds so will their salaries and 401ks, this, too, will pass.
Consciousness is not the enemy of capitalism. In the long run, it's part of its long term success.
I'm going to check this story very, very carefully.
Thanks for bringing it to our attention.
UPDATE: The publication you referenced seems very thoughtful and fair. At the end of the day, I don't care as long as VZ can generate a positive return.
VZ is Woke--and I am gone
Critical Race Capitalism
Verizon teaches employees that America is fundamentally racist and promotes “defunding the police.”
By Christopher F. Rufo
August 25, 2021
Verizon has launched an internal program teaching that the United States is a fundamentally racist nation and encouraging employees to support a variety of left-wing causes, including “defunding the police.”
According to documents that I have obtained from a whistleblower, Verizon launched the “Race & Social Justice” initiative last year and has created an extensive race reeducation program based on the core tenets of critical race theory, including “systemic racism,” “white fragility,” and “intersectionality.”
In the flagship “Conscious Inclusion & Anti-Racism” training module, Verizon diversity trainers instruct employees to deconstruct their racial and sexual identities and, according to their position on the “privilege” hierarchy, embark on a lifelong “anti-racism journey.” Employees are asked to list their “race, ethnicity, gender, gender identity, religion, education, profession, and sexual orientation” on an official company worksheet, then consider their status according to the theory of “intersectionality,” a core component of critical race theory that reduces individuals to a network of identity categories, which determine whether they are an “oppressor” or “oppressed.”
In a video presentation featuring a full-screen title card reading “Let’s talk about privilege,” then-Global Chief Diversity, Equity, and Inclusion officer Ramcess Jean-Louis (who has recently moved to Pfizer in a similar role) says: “As a black man in [America], we are viewed as less than. We are viewed as inferior. We are viewed that our life is not as valuable as anyone else.” Set to dramatic piano music and intercut with footage of the “Central Park dog walker” Amy Cooper, the video states that “weaponized White privilege” causes grave “danger” to African-Americans. Jean-Louis, speaking dramatically, to the point of nearly crying, concludes: “If we are not being viewed as humans, if we’re not being viewed as whole people with souls, these things happen and they will continue to happen.”
After establishing the intersectional hierarchy and threat of “weaponized White privilege,” Verizon instructs employees on the firm’s elaborate racial-etiquette system, which provides specific rules for engaging in “conversation about race.” The diversity trainers explain that employees should not commit “microaggressions” and “microinequities,” defined as “indirect expressions of racism, sexism, ageism, ableism, or another form of prejudice” that are “seemingly innocuous” and often “unconscious or subtle,” but make members of certain racial and sexual classes “feel different, violated, or unsafe.” Members of the privileged classes must instead engage in the “lifelong process” of demonstrating “accountability with marginalized individuals.”
As part of the company’s “antiracism” education series, #Next20, Verizon vice president David Hubbard interviewed Khalil Muhammad, great-grandson of former Nation of Islam leader Elijah Muhammad and newly minted professor of race at Harvard. During his presentation, called American History 101, Muhammad argued that America is fundamentally racist and needs a “new origin story,” replacing the narrative of “American exceptionalism” with the narrative that America was founded on “systems of racism” that remain at the root of our society. Muhammad argued that the Founding Fathers built a slave economy and that “this early version of global capitalism” produced the “economic incentives” that prevail to this day, with modern corporations “exploiting poor people in low-income communities” in a similar way to the slaveowners of the past. “This isn’t just Marxist talking points,” Muhammad said. “It’s just the fact.”
Later in the discussion, Muhammad claimed that the current American police force is designed to maintain a “two-tier society,” enforce geographic segregation, and protect the “wealth gap” between white and black Americans. The raison d’être of policing, Muhammad said, is to “make sure that kids are locked up,” “make sure that people stay in their communities,” and “make sure that they’re criminalizing poverty”—what he called “the bread and butter of systemic racism.” Black crime statistics showing that black Americans commit crimes disproportionately, Muhammad contended, “are themselves an expression of systemic racism,” used to establish “the collective guilt of black people” and to “[justify] inequality and racism and discrimination.”
What should be done? In another #Next20 conversation on “criminal justice reform,” Verizon hosted an activist named Adrian Burrell who openly advocated for “defunding the police.” As Burrell told Verizon employees: “I feel like over policing doesn’t work. And I feel like those same resources that are aimed towards hiring [police officers] with racist biases . . . need to be aimed at bringing more resources to the community at a at a root level, and then you just won’t need so many police.” Burrell added: “If you want to call that ‘abolishing the police,’ or if you want to call that ‘defunding the police,’ so be it.”
Verizon claims that this conversation, and its broader antiracism program, will “accelerate systemic change.” In reality, however, the company is promoting the conventional wisdom of the academic Left and the American bureaucracy. Diversity lecturers such as Muhammad, pretending to bring radical insights, have simply commodified critical race theory and sold it back to Fortune 100 companies—ignoring how fashionable ideas such as “defunding the police” are deeply unpopular with voters, including the majority of African-Americans.
Verizon’s corporate slogan is “Built Right.” If Verizon executives want to live up to it, they should scrap their antiracism program.
Christopher F. Rufo is a senior fellow at the Manhattan Institute and a contributing editor of City Journal.
Source: Verizon’s Critical Race Theory Training
Its goin' brotha, look at the Support at $54, might even bid $53.88-$53.92 and catch a few, and if Afganistan escalates well bid low 50's, lol
Right there with ya’. 100 shares@54 on order.
I'll add at $54 where its headed imo
Verizon Communications Inc. $VZ
Book Value Per Share (mrq) 17.21
Verizon Communications Inc. $VZ
Total Debt (mrq) 180.7B
There are too many better ideas for your capital than this flatliner. Sorry to say.
All about the dividend. Not exactly a great reason to own this, or any other stock....
THESE ARE NOT BONDS!
On the other hand, I would have to go out 10 fxxxkin' years to get 1.125% coupon on a discounted 10 year note.
DISGUSTING.....
Two things you can rely on VZ for. Steady dividends and no long term capital appreciation
Will wait for 55's again, let them get their $HIT together, hold and dividends
can VZ VERIZON trade stocks or do brokerage trades ---
someone thinks so
Buy 54 sell 60 is nice good 10% ... do that 10 times and you doubled. Thing is, i dont see that frequency movement but once earlier this year ... except recent 54 range. But I will agree ... I see
it will move to 60 from here.
$VZ-easy money. will be trading this one again for a while as it will be volatile btwn $54-$60
IMO VZ is a better managed, operational, and stock performer than T. That said, I've been a long time "income-owner" of both companies for those very attractive and safe dividends.
Looks like Warren Buffet filed he been buying VZ and Chevron and ditching JP Morgan and shedding 6% of APPLE, good for us normal folks!
He bought 146mill in VZ his quarterly dividend will be 90mill haaa
I'm with ya bought more today, been buying for weeks on this downtrend, wait it out and grab the DIVI, was hoping for $66-$68 by years end jmo
I own vz, but this looks like a place for me to grab more. Dividend looks good
I will probably die holding VZ. Hopefully that's many years in the future.
Still adding, long hold, getting ridiculous, if she has any strength she'll hold $54, might dip below intraday, but like to see 54 hold
Makes little sense. Love the dividend.
Nice financials and news, price goes down, adding here at these levels and have been.
Verizon: Brace For A $40 Billion Bill
Jan. 19, 2021 4:27 PM ET
https://seekingalpha.com/article/4399742-verizon-brace-for-40-billion-bill?utm_medium=email&utm_source=seeking_alpha&mail_subject=vz-verizon-brace-for-a-40-billion-bill&utm_campaign=rta-stock-article&utm_content=link-0
Stone Fox Capital Out Fox the market with misunderstood, high reward opportunities
Summary
Verizon appears the biggest bidder at the just-completed C-band auction with a total estimated bill of up to $40 billion.
The wireless giant already has over $106 billion in net debt and needs to pay for Tracfone as well.
The stock is stuck below $60 as the company fails to offer meaningful growth while paying a hefty bill for spectrum.
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The 5G spectrum auction just ended with an incredible bill due to the domestic wireless providers like Verizon Communications (VZ). These companies already had large debt loads and so far have failed to charge much in the way of premium prices for access to 5G networks. My investment thesis is even more negative on this stock following the wireless giant spending upward of $40 billion on spectrum at the latest FCC auction.
Verizon logo
Image Source: Verizon website
Massive Auction
On Jan. 15, the 5G wireless spectrum auction ended with a total of $80.9 billion in bids for the C-band spectrum. A lot of the original analyst estimates had the auction only spending in the $30 billion range and now Verizon alone could've spent far in excess of that amount and possibly as much as the prior record FCC auction of $44.9 billion.
The auctions started on Dec. 9 and the FCC will unveil the winning bidders in February or early March. With a combined $13.0 billion in reallocation costs and incentive payments for the spectrum from satellite operators, the total costs to the wireless providers were ~$94 billion.
By most analyst estimates, Verizon has been the biggest spender in these auctions. UBS analyst John Hodulik estimates the wireless giant could spend an incredible $45 billion on the auction.
Previously, Raymond James had estimates of total costs to Verizon of $35 billion before the holiday break. Afterwards, another $11 billion in bids occurred which could easily push the Verizon bidding beyond $40 billion.
Cowen has the following estimates for just the spectrum spending:
Verizon: $35 billion
AT&T: $20 billion
Cable: $10-15 billion
T-Mobile: $10-15 billion
Dish: $0-5 billion
While Verizon needs the mid-band spectrum to compete in 5G with T-Mobile (TMUS) following their spectrum haul in the acquisition of Sprint, the move isn't a good sign for the stock. No other industry requires competitors to spend billions upon billions to just obtain the license to upgrade services. Imagine if Apple (AAPL) had to bid $40 billion every couple of years to offer the latest iPhone or Tesla (TSLA) had to bid an insane amount to offer an SUV EV.
Wells Fargo even estimates Verizon will spend $34 billion on the C-band auction and T-Mobile will still have 60% more spectrum in the low- and mid- band areas after the auction. In essence, Verizon may have spent double their initial plans and still end up short in spectrum holdings compares to T-Mobile.
Debt Impact
Verizon was already spending $3.125 billion on the Tracfone deal and the 5G spectrum auction will further tax the balance sheet. The company will surely have to pay over $40 billion in cash for these two transactions while the net debt levels were already at $106.6 billion.
Verizon will approach net debt levels of $150 billion after these transactions are paid. The company will actually have the same debt levels of AT&T (T) prior to their recent debt raise of $14 billion to fund part of their portion of the spectrum spending.
ChartData by YCharts
With Q3 interest expense of $1.044 billion, Verizon is paying ~3.6% interest rates on $115.6 billion in outstanding debt. At these rates, the additional debt could add $360 million in quarterly interest expense, or up to $1.44 billion annually.
Source: Verizon Q3'20 presentation
Verizon entered Q4 with $10.7 billion in free cash flow above dividend payments this year. The wireless giant isn't going to face any crisis where the dividend needs to be cut in the near term, but the free cash flow levels will decrease.
The main issue is the lack of financial flexibility, if something goes wrong in the business or interest rates rise. The company will be burdened with repaying debt for years, instead of investing in the business.
Takeaway
The key investor takeaway is that the stock has failed to trade beyond $60 due to the high expenses and low returns from 5G wireless investments. Analysts don't forecast long-term revenue growth in excess of 1%-2%, yet the company just spent an estimated $40 billion to acquire spectrum in order to remain competitive. Investors should avoid Verizon as the stock still appears headed for years of weakness due to the low dividend yield and high debt balance.
Disclosure: I am/we are long AAPL. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
The setup seems to be dividend Vz as underdog to growth-oriented Tmus. Can VZ thread the needle toward growth and not get distracted by the sideshows? If so, then maybe Cramer can give VZ something other than an old folks dividend recommendation. Tmus is double the SP to VZ. In this setup, VZ seems like close to a sure bet, assuming they keep their head in the game. If they do, maybe they find a surprise for us.
And $56 held, loaded all week, but we shall see
If it has any strength it will bounce off $56
Buying in this range
If VZ can buy outright, or partner to obtain enough next gen bandwidth to run the topline 5G, then VZ sp will blast off.
VZ has just been a dividend play with no cap appreciation
VZ like T talk a great game but nothing ever becomes of it. You have Yahoo and AOL and basically have done absolutely nothing to grow a sector that’s going wild, think Snap, Facebook and Twitter. I don’t get the reasoning behind them doing nothing, or no plans of doing anything. Maybe, spin them off and let them sink or swim. Selling HUFF post instead of of utilizing their contributions is another blown opp. VZ management is a bunch of old good olde boys who sit back and simply collect a pay check instead of being aggressive. I’m sure most will agree.
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NEWS: $VZ Verizon's 4.4% Dividend Yield Remains One of the Best in Tech
Though shares have turned in an unimpressive negative 6% return this year, Verizon 's (NYSE: VZ) business has been a stable staple. That was on display once again in Q3 2020, with net new wireless subscriber additions and the highest rate of Fios Internet additions since 2014. But t...
In case you are interested VZ - Verizon's 4.4% Dividend Yield Remains One of the Best in Tech
When's is all this 5G really going to take off to make this stock go boom?
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