I can’t tell you how excited I am to get 5G. I am not sure why I am excited, but we are supposed to be. Rarely a tech segment goes by on the financial news shows, where they are not discussing 5G. After being schooled on Twitter about memes and blast radius (stocks that may move in relation to the meme), I thought this article would check out 5G network names in the 5G blast radius. I have a whole chartlist on 5G names and no one needs a new book to read, so we’ll stay within the traditional carriers.
The CEO of Verizon (VZ) is a great interview. He gives candid looks at how they are building out 5G. The stock has been in a steady uptrend within a wide channel. The SCTR ranking shows the stock is rarely a top performer and is currently the worst ranking in three years. It is near the low end of the channel, so perhaps a call to buyers could connect. Link to chart
AT&T (T) continues to push forward. The SCTR rankings suggests T is not average, but weak. It has been weak for a year, underperforming its peers. The relative strength to the S&P 500 is weak. The trading range is pretty boring for those looking for upside. Not sure what it will take to kick this higher, but the blast of 5G isn’t turning this up so far. Link to chart.
We are also watching the execution of the Sprint / T-Mobile strategy now that the merger can proceed. At least the uptrend looks good here, but you can see it is still underperforming the large cap peers with an SCTR ranking of 30. While the other stocks have been climbing lately, this one has been put on hold. Link to chart.
In Canada this week, Rogers (RCI) – Eastern Canada network – made a bid for Shaw (SJR) -Western Canada network – as they try to establish the third Canadian network coast to coast. That sent the SJR chart popping, and surprisingly the acquiring company also popped. As it tries to break through all time highs, this may consolidate for a while here. Link to chart.
Telus (TU) just spun out a division called Telus International (TIXT). The stock looks like it is soaring, but the SCTR helps us see the real truth. The stock is only better than 30% of the mid-cap peers. How can that be? The computer adjusts the scale on the chart to fit the highest and lowest price in the last three years. The stock has climbed a dollar this year so that is not a real portfolio driver. At least its trending up, and made a new high. Link to Chart.
Bell (BCE) is the old general in the space. This one is trying to take out all time highs, but once again, the SCTR is only at 30%. Link to chart.
So far, the 5G is all talk and short on action for these company stock prices. That’s my interpretation of the meme’s blast radius. There are better places to park your wealth.
Greg Schnell, CMT, MFTA