Jack Ablin, CIO of Harris Private Bank, disagrees: "We look at telecom from the top down. We're seeing continued P/E contraction, and in terms of momentum, continued breakdown."
Ablin noted a holistic problem rippling through the sector: "Telecoms' biggest customers are the U.S.' biggest banks and brokers." And Ablin said he doesn't foresee those big contracts being re-upped or expanded any time soon. (Dick Bove is more optimistic about banks.)
"Cash flows for Comcast, Verizon and AT&T are going to hold up pretty well," Smith said. He pointed out that Verizon raised its dividend recently, and praises the firm's rollout of its FiOS ultra-high-speed fiber-optic Internet/TV/telephone service.
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Disclosure information was not available for Smith, Ablin or their respective companies.
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