Verizon Communications, Inc. (VZ)

Verizon Wireless is heavily expanding into the realm of cable TV service, cable internet, & VOIP expanding it's portfolio of products it offers to customers.

Buy while it's unpopular. It won't stay that way. Telecom missed the spring/summer party and it's looking pretty good now. Price to Book 2, Price to Sales .8, Dividend 6.44, forward PE 11.3 (just for starters). Verizon invested in cellular structure and built its moat. Spending has peaked and VZ will reap the rewards. Don't forget to look at the FCF and its growth ... pretty.

The basics are good, and FIOS with it's stab at the cable market should be a cash cow over the next few years. Add a nice dividen, and the relative lackluster performance of sprint and AT&T on the wireless arena, and we may have a winner.

Will continue to increase in value as it enters into the home tV market. It will invade home video market much faster than CATV is gaining into telephone market

I had to include VZ in caps because what they are doing is higly disruptive and technologically transforming in a big way. For the internet to really maximize its potential, all-optical networks are an absolute necessity. My DSL connection sure beats dial-up, but at best, I can still get less than 1 megabit per second downstream, usually it's around half that. With Verizon bringing fiber to the premises, people will be able to potentially get 100 times that.

Not only will you be able to seamlessly stream high-definition video over the internet, with Verizon Fios you can right now download a full-length movie in just 5 minutes. How would you like to be able to click and not have to wait for a page to load- ever!

All-optical networks can't be beat and Verizon is really taking it to the cable companies with this $23 Billion dollar bet. This is a very big investment for Verizon, but it's sink or swim for many of the big telcoms right now. Anybody ever watch hydro-lane racing. I think Verizon will become the Miss Budweiser of Broadband.

Needless Digression: http://www.russwicks.com/miss_budweiser.htm

Perhaps this quote from a Forbe's Verizon article sums it up best:

"From a business standpoint, FiOS does give Verizon a long-term competitive advantage in the consumer marketplace," says King. "However, it's certainly expensive from [a return on investment] perspective."

http://www.smartmoney.com/Techsmart/index.cfm?story=20070327

I just added 200 more shares to my portfolio. This is now one of the largest holding I have. What's not to like? The dividend was raised again this year, it's now 6.6%. The payout ratio is less than 1, the PE is 13.7 and forward PE is 12.4%. Huge cash flow, and in any and all metrics it outperforms it's peers. Now add the fact that they are currently rolling out 4G services and will be adding Android handsets this quarter and next year, I'm speculating, will get the iPhone. Apple cannot resist the 81 million customers on the Verizon network. Not to mention that VZ is rolling out FIOS, the cable competitor in it's landline territory. It's a solid company, with solid growth, in spite of a bad economy and you get 6.5% just to own it. You would be foolish not to...........

Great buying oppotunity back at around $35. Sure it is spending a lot of money on its fiber optic infrastructure now, but in years to come that will be the advantage over other telcos and cable who simply will not have the neccessary bandwidth needed in the future. Wireless business is also tops. And while waiting for the stock price to double it is paying a nice 5% dividend yield in the meantime. Try to get that in a CD today.

Verizon is poised for strong growth over the future. Besides a strong subscriber base in both wireless and land-line based markets, there are two critical factors to keep in mind regarding VZ:

1. 700 mhz auction. Verizon will be announced as the winners of the Block C 700 mhz auction according to most analysts. This is a very big development for the wireless industry, as the 700 mhz spectrum is going to be the platform for the next-generation of wireless technologies. I anticipate a boost in VZ both initially following the announcement of the 700 mhz win, and long-term as they leverage this new spectrum into a powerful new network.

2. Fiber-optic based services. Verizon has been rolling out it's FIOS network in numerous markets for quite awhile, and they are constantly expanding these networks (albeit slowly). FIOS is easily the most bandwidth for the money in the broadband market and will likely become the choice of most subscribers in the US once it becomes more widely available. Couple this with the fact that the cable companies seem to insist on shooting themselves in the foot (tiered pricing, capping/throttling etc), I see Verizon becoming a very strong player or perhaps leader in the broadband industry over the next 4 years.

VZ is, in my opinion, the superior telecom. I'm excited to see if the fiber-optic cable its been laying will pay off. Even with healthy dividend (>4%) I think its going to continue to climb.

Verizon Communications operates through three divisions: Telecom, Business, and Wireless. Its telecom operations include nearly 140 million access line equivalents in 28 states of the U.S. Verizon Wireless, the company's joint venture with Vodafone Group, is the second largest wireless services provider in U.S., after Cingular Wireless, with 57.6 million customers. Verizon Business was formed in 2006 when Verizon bought MCI, creating a global advanced communications and information technology (IT) powerhouse to serve large business and government clients.

Verizon Telecom reported an excellent quarter. The company witnessed an addition of broadband and video customers, and its total customer base stood at 6.6 million. This was the fourth consecutive quarter, of 18% or better revenue growth, for the company as it focused on increasing its market share in the U.S. The company’s wireless and business segment delivered strong revenue growth, profitability, net customer additions, and low churn that were significantly ahead of the industry. The integration of MCI is also producing operational benefits for the company.

The market for wireline and wireless broadband in the U.S. is surging and the total broadband subscriber base is expected to reach 54 million by 2007. Over the years, Verizon has invested heavily in fiber optical cable networks, and higher-bandwidth capabilities such as DSL; these have given it a growing foothold in broadband market.

Verizon has announced the spin-off of its information services by Dec 2006, and the funds, thus, generated are expected to reduce the company’s outstanding indebtedness by approximately $7 billion, thereby improving its profitability toward its shareholders and maximizing the value of the shareholders.

Verizon Wireless just doesn't get it. They sell crippled phones, nickle and dime you and then have the audacity to tell you it's the manufacturer who doesn't offer services on their phones. Cingular/AT&T will win over lots of people with the iPhone as disgruntled Verizon customers leave.

Fios Fios Fios........
This product will transform VZ as a content provider.
Additionally VZ is going to suck it up and deploy more ROADM (reconfigurable optical add-drop multiplexors) which will allow faster switching of video.

Being in the telecommunications business is capital-intensive. It does not suffice to keep up with the competition. Verizon's massive spending on their Fibre-Optic to the premises system (FiOS) is keeping their short-term profits low, but in the long run it will put them way ahead of those still relying on copper circuits and technology. I do not think Verizon to be a promising investment in the short term, but as the offering of very high speed Internet and very serious competition to cable televisions, while still providing POTS all in a unified package (both billing and actual service provision) will, in my opinion, compare extremely favorably with those competitors who are not making comparable investment. And only those competitors with the financial capability of Verizon will even be able to play the game.

The Direction that the company is moving in is the best direction. Yes some say the FIber is a bad investment but they are looking for the decline to buy it up before it blows sky high. The company is preparing for it's future and is being very aggressive with the vision. The world wants fast and Verizon is pushing towards a fast no one can comprehend.

I really do not have any inside information but when I look around and see how many cell phones are in use and then I take a look at my cell phone bill it makes me want a piece of that action.

A decent valuation (though not good enough to call it a value stock) and a good yield of 4.3 % (as of 4/14/07) make VZ worth looking at. The thing that puts this stock over the top is its position to capitalize on content delivery. VZ owns the infrastructure that will deliver on demand video, pictures, and teleconferencing to consumers and businesses in the next decade. They are also making a tremendous investment in new fiber across the nation.

This one will grow and pay a good divedend along the way.

It will offer favorably priced products vs. Comcast. Fios will outperform (in quality) comcasts" services. Cash flow will surge. VZ offers a great dividend and shareholder equity has been iincreasing, even during the last fiscal year.

Continued success of VZW and emerging FiOS TV strategy - that's on top of FiOS internet/data to the home - BIG bandwidth -as well as strength in large business and government will propel VZ forward. Lots of cash-flow here.

Verizon is poised to become the most comprehensive provider of wireless services in America. Additionally, their recent purchase of television airspace puts them in position to have the most reliable network in America - without any argument whatsoever.