Communications – The communications Industry is the most unappreciated and undervalued investment opportunity today. Through out the decade investment analysts have predicted doom for the telecommunications industry because of the transition from wire line networks to wireless/wire line broadband. Analyst felt the massive amount of capital expenditures needed for the transition would overwhelm profits. But Verizon (VZ), AT&T (T), and Comcast (CMCSA) have successfully grown earnings while investing massive amounts of money in infrastructure for future growth.
Social networking, e-mailing, texting, and downloading didn’t even exist a few years ago. Today they have become indispensable. In addition, new applications come to market almost daily, making the communications giants close to recession proof.
Strong balance sheets, good earnings and high dividends make the Communication Industry an investment worth considering.
Disclosure: The Arbor Asset Allocation Model Portfolio (AAAMP) has positions in AT&T (T) and Verizon (VZ).
| AAAMP Blog by Ken Faulkenberry | |
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Ken Faulkenberry earned an MBA from the University of Southern California (USC) Marshall School of Business with an emphasis in investments. Ken has 25 years of investment experience and is dedicated to helping people with self-directed investment management through the Arbor Investment Planner. His asset allocation strategies have an outstanding performance record. |
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