AT&T ( T) is planning additional cost cuts and a retreat from more markets as the shrinking phone giant tries to fortify its hold on big business customers.Shares of the New Jersey phone shop dipped 2% Thursday after the company
Asked for examples of this newfound price stability, the executives said they were "not seeing new lows in the market" in terms of aggressive price cuts. The company also remained squishy on its dividend and stock buyback plans. AT&T generates more than $1 billion in quarterly free cash flow, and some investors expected the company to start sharing its wealth with stockholders as early as last year. On the conference call, executives said they are reviewing their options and don't expect to put any plans in place until midyear. "I think this is a disappointment for some investors, but I don't think the longs will start selling now," says one New York hedge fund manager who was short AT&T. "They'll probably hang on for the dividend."