Verizon Communications – Retirees Beware Of Price Erosion

Verizon Communications clearly has not been one of the leading Dow 30 - Industrials composite companies for quite some time. I put it on a Hold.

My previously written articles on VZ (just click) provide you the history of my forecasting, its accuracy and support for my performance. For over 50 years my management objective is to identify changing trends for my forecasting analytics.

My Performance VZ is not included in my 5-Year Table Performance for Income Allocation Model Portfolios and is available by clicking: Income Performance. I believe it accurately shares the rather positive results by first forecasting and then making wise investment decisions. I hope you will agree.

My management objective is to identify changing trends for my forecasting analytics.

A Special Note for Seniors & Retired Investors - Dividend Yield: 4.47%

It pays a good dividend and when it is in a up-trend it can be a very safe and productive company for Income Investors. However, the "up-trend" stopped over 10 months ago and that is bad for your portfolio.

Forecast w/ 5 Year Performance

Verizon Comm. and other Telecom Companies are tracking the marketplace well. There is always an end to a rally and many Utility / Telecomm Companies are not producing profits as usual.

Note: The below Table is for your review, questions and perhaps thoughts. If you are seeking to "Invest Wisely" in my Income Asset Allocation Model," please email me to open a dialog on how I go about providing superior performance with a very low threshold of risk.


 

My Current Forecast is not as bright as you may think! (I will be more specific upon your email request).

If you own or are considering owning Telecomm. companies, the securities are becoming a mixed bag. Verizon is currently relatively weak technically and I have reservations about my fundamental valuation; however, it is on my Initial Bearish Forecast - "Warning."

My Current Opinion is to Hold-Cash. Profits were taken and cash is a current safe haven.

Fundamentally - ( weighting - - 40% ), my Valuations remains relatively strong but are "Flat" and on the Decline. That produces future declining valuation projections.

Technically _ ( weighting - - 35% ), my Indicators are clearly breaking down. The current mini pull-back since April at about $53 to a current price of $47.

Consensus Opinion - ( weighting - - 25% ): My third pillar of research is one that is always distorted to the positive by most all financial analysts. That's because they are afraid of being bearish. I am not! My articles on "reality" are supportive of the following chart (click here for a 20 year perspective chart of Verizon).

Verizon has taken some big hits over the years! 

"Selectivity" is what I preach (along with discipline and patience) and is what separates the average investor and mutual funds from the profits that come with long-hours / hard work and "selectivity."

If you are seeking guidance or direction, please feel free to email me. My personal blog or site is: Investing Wisely.

Smile, Have Fun, "Investing Wisely,"

Dr. Steve

None.

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