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Analytical review of the stocks of AT&T Inc. on 01.03.2016

AT&T Inc., #T [NYSE]
Technologies, Telecommunication services, USA

Financial performance of the company:

Index – S&P 500;
Beta – 0.27;
Capitalization – 227.29 В;
Return on asset – 4.60%;
Income - 13.34 B;
Average volume – 29.25 М;
P/E - 16.35;
ATR – 0.54.


Analytical review:

  • In the past 4 months company’s the price of the company has grown by 13.8%. Tit is expected that quotes of the company will go up.
  • The company ranks 5st on capitalization in the sector of “technology” among the issuers trading in the American stock market.
  • At the end of January the company reported for Q4 of the fiscal year 2015. According to the press-release, in the reporting period company’s income rose by 29.8% (from 3.09 billion USD to 4.01 billion USD). EPS (earnings per share) rose by 27%, from 0.51 USD to 0.65 USD.
  • At the press-conference company’s management said that revenues in the fiscal year rose by 10.8%, from 132.5 billion USD to 146.8 billion USD, due to tough program of cost saving.
  • The company invests large funds to high tech companies. Last July AT&T has purchased DIRECTV for 48.5 billion USD. These technologies will enable to connect more than 100 billion devices to a wireless network with high speed of downloading.
  • Currently, company’s stocks are traded in the range of 37.00-37.40 USD. Large investment funds and banks (Morgan Stanley, JPMorgan, Barclays) predict that company’s quotes will go up to 40-41 USD.

Summary:

  • Report for Q4 of the fiscal year 2015 shows that management of the company goes in the right direction. Despite pressure from the strong USD the company’s net profit has increased as well as the volume of sales. The company adheres to the aggressive investment policy in terms of the high tech companies. Successful accomplishment of the investment projects will significantly increase company’s share in the industry of “Telecommunication services”.
  • It is likely that in the near future company’s quotes will go up.

Trading tips for CFD of the American International Group Inc.

Long-term trading:
at the moment the issuer has broken out strong resistance level of 36.40 USD. If the price maintains in the range of 36.40-37.00 USD and in case of the respective confirmation (such as pattern Price Action), we recommend to open long positions. Risk per trade is not more than 2.5% of the capital. Stop order can be placed at the level of 36.10 USD. Take profit can be placed in parts at the levels of 37.75 USD, 38.50 USD and 40.00 USD with the use of trailing stop.


Short-term trading: on the chart with the timeframe 15M the issuer is traded between the local support and resistance levels of 36.90/37.35 USD. We recommend to enter the market after breaking out and testing of these levels. Positions can be opened near the signal line and the nearest support/resistance levels. Risk per trade is not more than 3% of the capital. Stop order can be placed slightly above/below the signal line. Take profit can be placed in parts of 50%, 30% and 20% with the use of trailing stop.




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