“The best laid plans of mice and men often go awry.” Frost hit the nail right on the head with that one.
I had a plan a few weeks back to turn a trade with GE and realize a 5% potential profit in a a little bit more than a week. I was Gung-ho about making that trade, but I felt that I am extremely over exposed with GE right now, and if it went south, I would be even more exposed at that point. I wanted to trust my plan, but I wanted to be flexible and adjust to what the landscape seemed to portray. In the past week or so, the stock did exactly what I expected it to do, but I did not reap any of the gain because I did not initiate the trade.
Well, I decided to go forward with a trade, but I initiated the trade with T. My reasons for this were that the stock has been extensively shorted lately, and the vote by the FCC on Net Neutrality is coming at the end of this week. In my mind, I felt the shorts are on T because of the potential issues with the FCC vote. I feel that T and the other ISP companies might prevail or at least come out of this with less damage than what is expected.
If that happens, maybe we will see a little short covering and the stock might rise accordingly. However, if the FCC continues with their venerable socialistic attitude towards certain publicly traded companies, things might go south fairly quickly. The following are a few thoughts that I posted last night to a blog dealing with Net Neutrality.
“Well, as a shareholder in AT&T (T), I am against the regulation. First of all, I feel that it is not fair that a company such as T should be forced to allow other companies to use their poles so that they can just set up a new service. My father was one of the guys who put those poles into the ground. He erected poles on a line crew almost 70 years ago. Men worked back then. No bucket trucks–They climbed. T has spent lots of money over the years building the system, and now, the government wants to allow even more regulation over their use. Ma Bell was broken up in the 80’s because it was a considered a monopoly.
Now, the government is stepping in again. Where is the free enterprise system now?
If Google wants to set up an internet service, let it pay the “price” to rent the space or build one for itself. Why should every business be required to give their services or their product away? If the government regulates the Internet completely, the publicly traded companies that have built the Internet will have a noose around their necks. New companies will be able to just set up shop without having to put their necks on the line by building expensive infrastructure and spending tons of money on labor to do so. The government is going to just allow anyone who can run a line to set up shop on the existing poles and charge a cut rate price to get the business away from the company that is forced to allow them to use their equipment.
The argument is that the poles are there anyway, and it is just another wire. Well, that would be like saying that Ford spent billions tooling the machines and jigs for the new F150, but that any company should be able to use the machines because they want to build trucks too. Hey, trucks are a communications tool as I see it, so why not?
In my mind, a company like T should be able to make money and supply services and develop new tech while making money doing so. They broke the company into many pieces in order to stop them from doing just that. That did not seem to be good enough. MA Bell was once the largest company in the world, and if it had not been broken up, it still would be the largest. The government keeps tearing at it in whatever iteration that it becomes. T is a publicly traded company that is being choked to death by the government.
The government ought to regulate all companies if they are going to regulate them. The Internet is an information source, not a telephone source. It is not a utility. FCC can use all the semantics it wants, but it is just that- semantics. The US is supposed to be where free enterprise and hard work is allowed. With net neutrality, it will allow cling ons to walk on the backs of all the hard working men and women who built the infrastructure. Sounds like socialism to me-Far from democratic in my opinion.”
Well, today, it seems a little bit of help is coming from the Democrats in the FCC. Hopefully, the vote will ultimately result in the stoppage of the ridiculous thought processes being put forth by our current president and his henchmen.
Wasn’t it enough to regulate the electricity, the phone lines and radio? We communicate with lots of things.
Sooner or later, cars will have to be regulated, the phones we use should be regulated because they are connected to those already regulated services somehow…..Right? What about the companies that produce the meters that measure electrical use, what about the cash registers and scanners and price checkers? There is no end to how the FCC can use semantics to justify what is a “utility.”
Hopefully, some sensible individuals will allow the companies that have worked to create the information highways we know today to continue to innovate and push forward the creativity we all enjoy and expect.
Some things are better left alone. Look at the situation with the Healthcare system. The government should sometimes just stick to what they do best…..Nothing.
Long winded, but when it affects me, I cannot shut up.
Good luck to all. Any thoughts will be greatly appreciated.
Robert the DividendDreamer