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No. of Recommendations: 7

First of all I will start with a disclaimer - I am a Verizon management employee. I do believe I am intelligent and independent enough to not allow that to cloud my decision-making. You be the judge for yourself.

As far as when to sell Verizon stock, I agree with several previous posts that it depends upon many personal issues. I do whole-heartedly believe it is important for any investor to not allow their portfolio to become too focused upon a single stock or market segment. Proper balance is the key. Case in point is Lucent.

Until early 2000, Lucent as a company could do no wrong on Wall Street. Their stock continued to reach higher valuations seemingly every day. Everyone was saying that the equipment vendors were the “arms dealers” of the telecommunications industry arms race. As such they would continue to profit from the explosive growth in the market and were essentially immune to any downward market forces. I work closely with many of the various equipment vendors to Verizon. As such I know many people from executives to include installation supervisors. I now have acquaintances within Lucent who could retire if it were not for the value of the 401K accounts. Many had succumbed to the allure of Lucent stock and allowed their accounts to be wholly invested in their company. As a result of the significant and rapid decline in the stock price, many have lost a significant portion of their 401K's value. Do not allow yourself to believe you are “on top of” market developments, or know your company so well as to think you can get out before things go sour.

My personal opinion as to the growth potential for Verizon is positive. I believe the company is well positioned to take advantage of new technological developments within the telecommunications industry (e.g. broadband, xDSL, and new wireless technologies). In addition the company has a consistent revenue stream as a result of its local telecommunications services. This will allow the company to maintain revenue projections and fund it's development of new advanced services and revenue streams. The company is dedicated to customer service and shareholder value. Granted the company has had some difficulty integrating xDSL into the network and maintaining the highest level of customer service and satisfaction. I assure you it is not through lack of effort.

Short-term the company is best positioned to ride out the current market troubles. In the long-term the company has the opportunity to leverage it's current position as one the top telecommunications service providers in the United States to consistently grow revenue and thus provide increased shareholder value.

Good-luck to all,


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