Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Thursday, December 22, 2011

Article Excerpt

PLEASE NOTE: This is our last Hotline for 2011. Our next Hotline will go out on Friday, January 6, 2012. AT&T INC., $29.66, New York symbol T, has cancelled its plan to buy rival wireless carrier T-Mobile from Germany’s Deutsche Telekom AG. Adding T-Mobile would have made AT&T the largest wireless carrier in the U.S., with 132 million subscribers. However, the company doesn’t believe that regulators will approve the purchase. As a result, AT&T will pay Deutsche Telekom a $4-billion break-up fee, consisting of $3 billion in cash and $1 billion of wireless spectrum. That’s 11% more than the $3.6 billion, or $0.61 a share, that AT&T earned in the third quarter of 2011. T-Mobile’s wireless spectrum would have increased AT&T’s network capacity by 50%. That would have helped it better handle growing demand for wireless services as more people switch from land lines to mobile devices. However, even without T-Mobile, AT&T has been taking other steps to increase its capacity. For example, it recently…