Transcript Verizon (VZ)

VERIZON (VZ)
Ben Hsu and Sangwon Kim
RECOMMENDATION
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Buy at current price (~35-36)
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Sell at around 42
BACKGROUND
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Telecommunications services
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Provides TV, internet, phone, and wireless
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CEO is Ivan G. Seidenberg
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Split from AT&T, called Bell Atlantic Corporation
NUMBERS
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Price (as of Wed.): 35.49
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52 week range: 25.99-37.70
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Shares:2.83 billion
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Market Cap:100.32 billions dollars
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P/E: 228.1
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Dividends: .49
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EPS: .16
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Beta: .65
CHART
COMPETITORS
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Sprint
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AT&T
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T-Mobile
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Also, in the past half year, Verizon stock has been doing much better than Sprint or AT&T
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http://www.google.com/finance?q=vz
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Verizon is commonly known by the public as the most reliable
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“Verizon got the highest download score in seven cities; Sprint scored highest in four;
AT&T”
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http://technologizer.com/2009/06/29/verizon-vs-sprint-vs-att/ in two.
PRODUCTS
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3 areas:
• Domestic Wireless
• Wireless voice and internet/data plans
• Wireline
• Home voice, broadband video, internet, long distance calling
• Verizon Business
• Offers IT products and services
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Provided to consumers, businesses, and carriers
DOMESTIC WIRELESS
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Provided service to a customer base of approximately 91.2 million
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Offers a wide variety of plans to suit all needs
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Verizon Wireless Prepaid- no contract needed
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Largest in the US
WIRELINE
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Provides customers with home and business communication services
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Provides services to 150 other countries in the world too (businesses and carriers)
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FiOS
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11.7 million homes across 14 states
HOT PRODUCTS
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Droid by Motorola
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FiOS (internet and voice)
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iPhone (2/10/11)
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Samsung Galaxy S series
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Palm, HTC, and LG smart phones
WHY BUY?
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Recent addition of iPhone
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Jan 25th earnings release
• Influx of income from Droid and smartphones
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4G network (LTE)
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Smartphones are “hot” right now
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Pays dividends
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Overarching theme: Hot products keep Verizon ahead of competition
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http://www.benzinga.com/press-releases/11/01/c779700/verizon-communications-upwardmomentum-looks-to-continue-vz