VZ - Verizon

[BAEVentures]

Worth looking at for a long term play. Currently trading near the bottom of their 52 week range of $28-35. Primary reason for my purchase is the 6.35% APR Dividend Yield. Might also be worth looking into for an iron butterfly or some form of consolidation options trade, as I doubt we will break out anytime soon. Just remember, if you sell an option, you are going to have to cover the Div.

BAEVentures

[go4reward]

Yes, it is a very long term play. it is better than a CD before of the yield. It got FIOS and mobile. I like CREE better if you want faster appreciation, but it can come with bigger risk. The market cap for CREE is much smaller than VZ.

[BAEVentures]

VZ, today, moved to a new high in the 60 day uptrend on volume that is 50% greater than the 10 day average.

[go4reward]

Yes, it does look better now, but I am still a bit hesitate on the fact it is not a 52-week year yet.

[BAEVentures]

Another good move up on VZ today, although I believe it is mainly false news affected. A few articles touting the possibility of VZ getting an iPhone contract because Apple is developing a CDMA version (Verizon's 3G technology), however, Verizon rejected the terms and conditions Apple put forth the first time, I doubt they will accept as stands, but only time will tell.

AT&T still holds exclusivity on the iPhone until June 2010, but there is rumor of that being extended until 2012 (at which point AT&T will likely have the largest 4G network and Apple would be hesitant to leave that exclusivity).

New intraday high of $31.48 just $2.65 shy of their 52 week high of $34.13. Today's movement is on heavier than usual volume (average volume = 15 million, today is 25 million with 4 hours of trading remaining, up 3.32% as I write.)

BAEVentures

[go4reward]

Yes, VZ is a good buy for the reasons you have stated:

• iPhone
• good yield
• upside momentum is back

[BAEVentures]

Closed up 2.56% to $31.23 on 3x normal volume (44 million shares traded). Also worth noting that the short interest as % of float has decreased from over 2.5% to 1.37% over the last 4 months. Could be good or bad depending on how you look at (less people interested in shorting, but also less having to cover their shorts if the market moves against them, which causes the price to increase even more).

BAEVentures

P.S. I was looking at FTR (Frontier Communications), a profitable communications company involved in wireline assets, earlier today. While everything appears delicious I noticed that:

Short Interest   
Shares Short (Current Month)   41.7M
Short Ratio                                   6.2x
Short Interest as % of Float      14.26%
Shares Short (Prior Month)         30M

The 14.26% of float currently shorted scared the hell out of me. Should I be worried or is that a good sign that eventually these shorts will have to cover? Not sure which light to evaluate this statistic in. I always took a higher percentage as bad news for the price of the stock, but thinking about it further, I'm not sure that is the case. For those shorts to realize a gain (most short traders are short term traders as well) they must cover their position, ie buy it back. This means that 14% of the shares in float being short means 14% of 2.3 billion market cap must buy at some point (2,300,000,000 * 0.14 = 320,000,000).

Simply put, that's $320,000,000 worth of buying power in this stock at a 10 day average of 5 million shares a day being traded, that's 10 days at the average of 100% buyers...Just a thought that might actually construe this high percent of float as a positive sign, perhaps i'm just over evaluating.

BAEVentures

[go4reward]

The chart for FTR does not look that promising. I like VZ over FTR.

[BAEVentures]

I am watching FTR for a buy signal but it is definitely not there right now. Will create a new thread if I find one I like.

BAEVentures