Fundamental and Technical Analysis

Fundamental and Technical Analysis - Igor Kukharenko...

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Igor Kukharenko 05/29/2011 Samer Batarseh Fundamental and Technical Analysis of Brief In my analysis I will analyze AT&T wireless company with their competitors Verizon Wireless Company. I will try to determine if AT&T wireless company has more opportunities for growth over Verizon Wireless. In first section of my analysis I will look in to the price per share, P/E
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ratios and Return on investment at same time do analysis of the companies past performance with economy growth followed by fundamental and technical analysis. Share Price Analysis As of May 26, 2011 AT&T stock price was $31.00 with market close, and Verizon $36.40 which indicated that Verizon is trading $5.70 higher over AT&T. Usually companies with same size and line of business should have price per share really close. When we starting comparing daily volume and average volume over 10 days for both companies we can see that Verizon daily volume was 14,046,613 and average 10.23 million; AT&T daily volume is 18,184,750 and average 19.75 Millions, according to volume comparison I can see that AT&T carrying more interest to investor. Also Volatility value is 183.58B for AT&T and Verizon 316.94B which is indicates that Verizon has a lot bigger changes in stock price over AT&T. P/E Ratio Analysis Let’s compare AT&T Wireless and Verizon Wireless companies P/E ratio which measures the price that investors are ready to pay for each dollar of earnings. A high P/E ratio indicates that investors regard a company as representing good investment prospects where a low P/E indicates poor future for growth prospects. P/E ratio for Verizon is 29.1x and AT&T 9.2x according to our statement above I can see that Verizon has more promising returns on investment then AT&T because of low P/E ratio also AT&T wireless company with its resent plans to acquire T- mobile for 39 billion showing slow progress do to facing different types of regulations over taking over as well as pressure from Sprint wireless competitors in same line of business but a lot smaller in size. Investor sees it as to many stops on the way to acquire of T-mobile which will cost AT&T to spend even more in attorneys and other fees. Per my opinion it’s big move for company of that size to spend and not sure if it’s will benefit or bring returns to cover current expenses over short period of time in order for investor to get their dividends and other type of returns on their investment. Return on Investment Return on investment represents profits divided by the investment outlay. Yield for both companies pretty close: AT&T 5.52% and Verizon 5.28% which indicate that AT&T has a little advantage over Verizon about 0.24%. Dividends payable that were announcement on 03/25/2011 were 0.4300 for AT&T and Verizon on 3/04/2011 were 0.4875. Its shows that AT&T Company is trying to invest a lot of its capital on acquire of T-Mobile also according to the latest news we can see that AT&T is trying to catch up to its competitor Verizon and Spring by launching its
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Fundamental and Technical Analysis - Igor Kukharenko...

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