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Verizon Finanacial

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Verizon Communications Inc. NYSE: VZ

Student Investment Fund Stock Report
Analysts: Xi Cheng, Tanner McAndrew, Luke Thompson, and Daniel Wadsworth Recommendation: Buy Market Cap: $86.2 B Recent Price: $32.69(12/1/2009) Target Price: $47.11 Industry: Telecom Services Sector: Technology

HIGHLIGHTS  VZs subsidiary (Verizon Wireless) is the world’s largest wireless service provide  VZ is expanding its presence in wireline services through an advance fiber optics network service called FiOS  VZ has experienced growth in revenue over the past five years and is on pace for an 11% increase in 2009  VZ has a consistently increased its dividend payout  There is large potential growth and development in the Telecom Industry  VZ has competitive advantages in distribution network and pipelines  Early Adoption of 4G Network  Ranked as top 1 wireless service provider in annual consumer report

INVESTMENT THESIS  Demand for and dependence upon wireless technology has exhibited a strong upward trend which is expected to continue in the future. Verizon is competitively positioned to take advantage of this trend.  Broadband service and the popularity of bundled services have increased substantially. With Verizon’s recent investment in this sector, the firm is expected to capture an increasing portion of demand.  VZ’s ability to successfully generate a strong ROIC, add economic value, and further improve their dividend payout coming out of a deep recession demonstrates the firm’s efficient operations and strong market position. FIVE-YEAR PRICE PERFORMANCE VS. S&P500

BUSINESS SUMMARY

Verizon Communications Inc. provides communication services in the United States and internationally. It operates in two segments, Wireline and Domestic Wireless. The Wireline segment provides voice, Internet access, broadband video and data, next generation Internet protocol...

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