AT&T and Verizon: We Don’t Expect Major Liability Tied to Lead in Telecom Cable Sheathing

A series of articles in The Wall Street Journal concerning lead in cable sheathing dealt yet another blow to investor sentiment around telecom stocks. An analyst downgrade of AT&T citing potential legal liability, among other issues, further punished stocks across the industry Friday morning. While this situation warrants watching, we don’t expect the telecom industry will bear substantial legal liability. We believe AT&T and Verizon shares are very attractive at current prices.