Warren Buffet is fond of comparing the game of baseball to investing. There is no three strike rule you are out when it comes to investing, he says. You can wait for that fat pitch to come along before you swing. That fat pitch is here now with the recent market pullback. In a market already going down, traders pushed down the stock of Verizon at the very time you should be buying it.
The rollout of the iPhone 5 and it’s LTE coverage is showcasing Verizon’s superior wireless network. Just a week ago the Journal ran a story how people were giving up other things in their lives rather than scrimp on their smartphone cell plan. We are a nation of people who need to be connected to the Internet 24*7. Verizon is a leader in an industry that’s growing, a rare quality in today’s sluggish economy. Furthermore it’s not exposed to the European debt crisis. Where can you find a growth business paying you a 4.5% dividend as well? It’s right here and chances are you will be a customer of theirs if you’re not already.
Anyone that has a smartphone, knows that carriers are getting tougher on upgrades as well as data usage. The market’s fear of Softbank increasing competition on the duopoly of AT&T and Verizon is misplaced. A little competition is good and that’s all Softbank will ever be.It doesn’t have the financial chops to take on either of these telecommunication giants. What it does show you is that U.S. wireless market is a place people want to buy into. And you should too buy grabbing Verizon at Friday’s close of $44.62.
Softbank Risks Debt Rerun with Sprint Deal
By DAISUKE WAKABAYASHI and ATSUKO FUKASETOKYO—Softbank Corp.s potential acquisition of Sprint Nextel Corp. would reload the Japanese mobile operator with heavy debt, only a few years after its strategy of leverage-fueled acquisitions forced it to the brink of collapse during the financial crisis.There were signs Friday that Softbank would have little trouble financing the deal for the U.S. wireless carrier with loans from cash-rich Japanese banks. Nonetheless, investors werent thrilled by the prospect of a new strain to a balance sheet only recently cleaned up.
via Softbank in Stalking Sprint Again Flirts With Heavy Debt – WSJ.com.