All Aboard for AT&T Inc

“AT&T Inc (T) is a screaming buy thanks to the iPhone,” Jim Cramer said, “not to mention the dividend and the strength of its other business.” Cramer thinks the stock is heading to $30 a share. He told viewers of his “Mad Money” TV show Tuesday that he asked four of his “Off The Charts” technicians to find him a stock with the prefect chart for this market rally. The technical wizards came up with AT&T Inc as their favorite chart. The stock recently broke through its 200-day moving average, an area that was meet with selling in the past, and now that trend line represents support, which should provide a floor for the stock. Cramer said we have now reached a point where investors are buying the stock on every pullback to the 200-day moving average. He explained that the big money is buying AT&T because of its strong fundamental story. That story is the mobile Internet tsunami due to AT&T’s iPhone exposure. Cramer also likes the stock for it’s 6% dividend yield. “AT&T has become the safe way for those risk adverse to play the coming mobile Internet tsunami,” he said. Cramer pointed out that unlike Verizon (VZ), which owns only half of its wireless division, AT&T controls 100% of its mobile operations, which makes up 43% of its revenues. Thanks to the iPhone, AT&T’s revenues are accelerating at a rapid pace. The average revenue per user for data was up 26% last quarter, and 108 billion text messages were sent, double the amount year-over-year. The company also added 1.4 million additional wireless subscribers that quarter, and the firm is forecasting even more growth for the next quarter. Another growth division for the company is their video initiative, the U-Verse service which last quarter added 248,000 net subscribers, bringing the total to 1.6 million, and around 75% of them are using it as part of a triple or quadruple play, – cable, Internet, phone and wireless.  “All aboard AT&T,” Cramer said. “Next stop – $30 a share.” Get the scoop on tomorrow’s hottest trade ideas – TODAY! BeaconEquity.com PREMIER PICKS have an amazing track record. Join this select group and ride the profit wave!

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