Wednesday, January 12, 2011

Verizon (VZ) gets iPhone; BUY BUY B.., or not yet?

Verizon has surely dominated the (financial) news channels lately. Soon Verizon (VZ) will be getting the tremendously popular iPone4 on its powerful network, available to some 93 million customers. Verizon stock (VZ) is currently trading around $35.47, but for the past few days, even after the announcement, the stock has been trading lower. Mainly because, first of all, the iPone is not yet on its networks until February 10th 2011, and second, most people that already have the iPone4 are locked in a contract with AT&T (ATT) the current (and only) provider of the iPone. Should you buy this stock now? Or wait to get a cheaper price? When it comes to technical analysis (as shown below) it looks like traders are preparing their setups.

The stock is still well in its Bollinger band range. Any price within it I consider a 'fair market' price. For short term traders the call option chain on this stock looks very attractive although I think it's a great stock to own for your buy-and hold strategy portfolio. This stock has great potential for growth. Short term and long term. The question is, what would be a good entry point. In case of Verizon, it's a great question. That depend of course which indicators you use and hold value to. If you already bought this stock, you're ok, I think if you wait a little bit for it to go cheaper, you're better. For me I'm going to wait until I see unusual trading volume. Definitely a buy!

Disclaimer:

All opinions expressed, trade recommendations/advice on this website are solely of John van der Munnik and are not affiliated with any investment firm or any other organization. You should not make an investment only based using this website VDM Trading for your trading needs without seeking help from your own financial advisor.