hello everyone and thanks for tuning
into the financial investor channel my name is Brent and today we're gonna be
covering for stocks I am watching in December and if any one of these stocks
comes down to either be an opportunity to purchase I will end up buying it in
the month of December so I've been talking quite a bit about Centrelink and
you know I talked quite a bit about the company I research the company
especially with the FCC net neutrality thing going on on the 14th of December
so this month for stocks I am watching all have to do with telecommunications
three of these I'm currently holding one of them I'm taking a look at so let's go
ahead and get into it I'm not going to be covering centrally too much in this
video but it is on my for stocks I am watching this month on as far as you
know net neutrality goes I posted on my facebook website the snippet that I
found on how 2005 Madison River was blocking VoIP Comcast was not denying
peer-to-peer services such as utorrent BitTorrent
you know those touring teen things 2000 709 AT&T was blocking Skype blocking
voice because it competed with their cell phones metro pcs which I believe is
now warmer they were blocking all streaming except for YouTube 2011 13
AT&T Sprint and Verizon all blocking the Google Wallet because they competed with
their services so you can kind of continue reading and reading tethering
FaceTime and so on so going forward at net neutrality gets
knocked down what services are gonna be affected by these major ISPs are they
gonna allow you to connect and use Google Wallet again are they going to
block Skype are they gonna block FaceTime are they gonna block anything
about YouTube are you gonna be able to access your favorite streaming websites
are you gonna have to purchase a TN t–'s direct package you know their
DirecTV package in order to even stream anything so those are some questions you
need to be asking yourself and as an investor in AT&T CenturyLink and Verizon
which are some of the four I'm going to be watching with an additional one
you know it's great to be a shareholder they haven't had a lot of movement in
the last couple years so let's go ahead and just jump into I'm gonna cover my
first three very quickly because I am a current holder of them
Centrelink has been on a downward trend they've missed their earnings per share
every single quarter for the last four quarters and maybe even prior but going
forward I believe they're gonna be turning this thing around they have a
lot of free cash flow the main reasons they lost a lot of their free cash flow
is because they did acquisitions and they're acquired new businesses so such
as they had a lot of 12 billion dollar acquisitions level-3 was one of their
first 32 billion dollar acquisition and that kind of drew down their free cash
flow but it wasn't because they're just kind of spending money out crazy this
was a legitimate purchase in like a really nice company level 3 has really
good management they had a very nice stock they have very nice free cash flow
they have really good earnings potential you know they've been increasing their
earnings over 1 to 2 percent per year so going forward essentially it's going to
be turning around and I could actually see them within a 20 to 25 range and
it's going to be changing as far as Centrelink goes for the year they are
down currently 41.8 they're sitting that around a 14.5 percent yield there
they've actually talked during their quarter 3 about not cutting back their
dividend because it's an important aspect for their shareholders so FCC
wise this is one that'll be affected by the net net neutrality being taken down
second stock I'm watching in the month of December is Verizon now Verizon it's
a telecommunications company they actually do very well they are currently
down eleven point nine three percent this year I bought back in August
timeframe a very big deep dip I'm actually currently up in the position
you can see I had major swings I was up ten twelve percent it came back down
recently but with again FCC plans to abandon hled and this is a huge boon for
ISPs the Internet service providers being until a communications field be
engineer being just you know I read about technology day-to-day because I'm
trying to keep up with this stuff and you know it's it's gonna be an important
thing I've been taking a look at how it'll affect all the services what kind
of services that may affect and I don't know it's hard to predict these sort of
things but it could have some sort of an effect on lots of those services out
there third shock I am watching in the month of December is AT&T ticker symbol
T now AT&T is actually one of the better of the prior three between Verizon and
Centrelink I would actually invest an AT&T prior but my position my equity
inside both AT&T and Verizon is currently at a point where I you know I
don't want to exceed that point I believe when we're on five to six
percent invested and both of those companies and I'm trying to invest and
increase my equity and Centrelink right now but there is another one on the you
know that I'm watching right now if it continues to you know depending on how
it goes we're actually gonna be taking a look in screening a couple of use like
soft screening so AT&T three out of the four quarters they were really positive
now your today AT&T is right in the middle they're not quite as down as far
as CenturyLink and they're not you know Verizon isn't too bad in itself but AT&T
is currently down eighteen point one five percent this year I believe I am
Dan in this position I bought it again back in August timeframe and I believe
I'm currently down in this position but going forward with the AT&T Time Warner
merger you know the buyout it's really in the
force right now they are it's going to the judge level I read something today
about their they hired they put the same judge that they put in for a comcast I
think and some other some other I was reading a bit about it I don't know
where it's at so I'm not going to talk too much on it but again another stock
affected by the FCC ruling now the fourth sock I am watching in the month
of December is Comcast and this is actually one that I've never actually
taken a look at until now maybe I took a look at them but that will yield didn't
my screen test but if I were to take a look at Comcast they've actually beat
their earnings per share the past four quarters and possibly even longer taking
a look at just their balance sheet really quickly
quarter to quarter they've been going up very nicely annually they've been going
you know they had a bit of a dip in 15 they may have been like an acquisition
or purchase something but cash equivalents has been very well the main
thing here is their assets have been increasing let's take a look at their
long-term assets their long-term assets has been in Korea at increasing and
short-term asset doesn't really matter as far as long-term debt that's been
increasing slowly not anything near what their long-term assets or investments
have been growing up their free cash flow is currently positive they had a
negative back in 2015 so they're actually pretty positive so very
nice-looking you know company without diving to further into it they're
actually up this year so out of the three other
telecommunications companies that I covered Verizon AT&T and Centrelink this
is the only telecommunications that has actually positive for the year by 3.9
and look at this it's actually going back down to about a great opportunity
to buy if I looked at their 52 week low as there's a showdown here
I believe it showed over on their summary 52 week range $34 and one penny
so this is very nice off that 32 week low now quickly kind of look at them you
know CenturyLink one of the main reasons I had bought this just because the yield
the price it had a very nice value it's free cash flow was up quite a bit since
you know I had taken a look at the stock all these portions here were they had a
big dip you know they had an acquisition back in Oh 8 they had an acquisition in
2011 2012 they had an acquisition in 2013 and they just had this big 32
billion dollar acquisition with level 3 so their free cash flow is getting
chunked but they were in the billions they had to give up a little bit out
their free cash flow they're back down in the million
but level three has some very nice free cash flow Centrelink has some very nice
free cash flow with the FCC's ruling it's going to increase their services
that they're able to provide they're going to be able to charge additional
fees it's going to be changing quite a bit price the book value when I
purchased the stock they were at a point six five point six five price to book
value I bought it right back in September so it was actually bright back
here so they had around a point it looks like maybe 0.8 hi I've been buying the
stock you know for the last couple months and weeks I just did a couple
additional purchases here is their new price the book value that jumped over
one so it's actually at a nice but valued biased
now it's overvalued for its current price to book value
in the sense but I bought it when the book value of the actual price of the
book you know price ticked a person the book value was low now if you're buying
it yeah and their price to earnings is actually pretty high in comparison to
everything else as far as telecommunication goes if we just go
ahead and bring in all the other telecommunication providers you can see
here that Centrelink is at the top as far as price to their earning potential
right behind by Comcast than AT&T and Verizon is at the lowest now just taking
a look at their book value here the central link is at the lowest as far as
book value you're probably getting the best you know you're getting the best
price for your value amount follow right behind by AT&T so AT&T and then Comcast
and then Verizon so out of all of these you know the price price to the actual
book value of the company anything below three it would be a considered a value
investment now I don't know about well should we
take a look at so I want to take a quick look we'll take a look at price and
yield so right now Comcast as you know for the year they're currently down
there at a $35 point looks like prior back and about a year ago they're
probably down and you know 34 dollars and one penny was there 52 week low so
if this continues to kind of go down which I don't see it going down they've
actually had very nice earnings for the past four quarters they've been doing
really well so this is something that's kind of unexpected in comparison to what
they've been doing as far as earnings go I would like to take a look at what
their revenue free cash flow and net income has been for the last five years
and they're actually up so you can see percentage-wise their free cash flow is
up 22% their net income is up 33 percent their net income
I'm sorry their revenue was up 33 and their net income is up 40% so they've
actually done very well and this is actually one that's that I think is very
nice as far as investing in Centrelink you know they kind of down
for the past three years but you know they've been kind of in the dirt and
they've been spending money on acquisitions AT&T wise let's take a look
AT&T is huge and the income in free cash flow and revenue and that Lynn those
last three years and Verizon Verizon's gone down a little bit and their free
cash flow that's because actually I don't know if any acquisitions they had
a yahoo and I think that may have been like the last one that they've done and
then their revenue here his negative 2.09
in their free cash flow is up 36% so I just kind of taking a look at quite a
bit of these you know Comcast itself doesn't look too bad
AT&T looks like the winner as far as you know investing for the long term just
looking at that free cash flow that they're pulling in you know how much has
crease in the last three years you're still getting a pretty decent value
let's take out that percentages you're still getting a pretty easy value you
know 3.0 is where the price in comparing you know you're paying a hundred and
seventy-one percent premium a 1.0 would being that you're currently paying at
that price is equal to the company's book value so you're only paying you
know a little over for the premium of the price in comparison to its actual
book value so that's actually not too bad so I'll leave the rest for you guys
to kind of decide but those are the four stocks I am watching right now and I'm
not gonna take a look so Centrelink you know I've been by an increase in my
equity in that one Comcast that's not another great buying opportunity I think
I don't think it'll drop down any more I may take a look at what was the lowest
hair point sometime in the last month or so and try and put in some buys some
limit buys in there AT&T it already felt probably to its
support line and it's kind of bouncing back up depending on how their merger
grows with Time Warner when it when it you know when it comes into a fact and
how the SEC ruling is I could see 18 t just kind of continuing back up into the
38 $40 range for risin its you know it already hit the bottom of you know it
kind of hit it's support back down and July
I believe that's when I bought the Verizon back way back when when I
transcribed the Robin Hood I bought Verizon Fred at that dip so I
haven't bought any additional Verizon lately I've already have a pretty decent
good position in there but I can see this one you know they had a yield
overrun 5.25 somewhere in that time frame so if you had actually looked into
quite a bit of these stocks you could probably get a really good deal right
now so looks like all of them in a sense are
undervalued in comparison to their yield to current price but only a few of them
are you know Book value below 3 what do I have here
so Verizon is probably the most expensive price do you Book value and
then the other three paying a premium of 300% or less is actually not a bad buy
in AT&T has the most free cash flow and that income and revenue so that is it
for this video if you enjoy these if you thought my stock picks were pretty good
to watch for the month of December go ahead and leave yes I like your stock
picks in the bottom of the comments if you think that there's something else in
here that I can kind of add that has to do with telecommunications that's going
to be affected by the FCC for the positive go ahead and leave that on the
comments below and if you have any questions about anything that was
covered today go ahead and leave that in the comments below I always like to have
comments in the comment section I like to read and I will always respond to
your guys's comments so again thanks for tuning in if you're brand new to my
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thanks for tuning in and I will see you next time have a great day



Here's the Video Transcript:

Stocks To WATCH or Stocks To BUY - December 2017