As Investors Cheer AT&T Earnings Report, An Old Moat Crumbles

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Mark Melin
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The tele-com giant ended up near 5% Wednesday and up near 2% today after  the latest AT&T Earnings Report had some outwardly negative news. As analysts have been watching the traditional cable business model wither, the diversified telecom conglomerate said it lost a record 351,000 traditional cable subscribers, providing ammunition to detractors. So with the apparent confirmation of the bear “moat loss” thesis in a traditional business model, why are the likes of Macquarie’s Amy Young so positive? It appears a new business model is being embraced. The moat around cable television extends to distribution pipe as well as content…

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Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.