You'll remember that I'd said that AT&T would very likely experience much more pain. Well, here's the start of it.
Sean, I remember in another recent post on AT&T, you said they had a lot of debt. I just looked up T in yahoo finance. Their market cap is at 214.4 Billion and their debt is at 191.7 Billion. That debt is just a hair under 90% of their cap. I know good debt vs bad debt has been talked about before but I'm wondering what can happen to a company when their debt gets so close to their market cap? Do they have to now work really hard to start working down the debt? Do they have to liquidate assets, have layoffs, cut costs, etc? Just wondering in your experience what you've seen that can happen to companies when they get into a position like that with really high debt.
Lets short it!! (just kidding)