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In 2004, I was a guest speaker at the World Money Show in Orlando. One of my highlighted stock picks was SBC Communications (now AT&T). When the stock was at $25/ share I said;

"SBC Communications (SBC NYSE) is the second largest telephone company in the US. SBC is the combination of Southwestern Bell, Pacific Telesis, and Ameritech with 57 million phone lines in 13 states. In addition, SBC owns a 60% stake in Cingular Wireless. In 2001, the company traded in the $50s and is currently trading around $25. Left for dead and paying a 5% dividend, the company is back on the comeback trail.

"Recently, SBC announced plans to buy back 10% of its outstanding shares and raise the dividend by 10.6%. Share repurchases will reduce the number of outstanding shares, and raise earnings. Mexico's richest man, Carlos Slim Helu purchased five million shares in October 2003 at prices around $22/ share. The last time I saw Carlos Slim buy this aggressively, he was buying Phillip Morris at $19/ share. Mr. Slim is an SBC Director and has proven to be a very savvy investor. I am looking for a conservative 25% gain in SBC, and maybe more."

AT&T is now trading around $37.00, a up 48% from 2004. I am satisfied with the return, and think it is time to sell.

The stock is currently yielding 3.8% which is competitive, but not worth risking any reductions in capital gain. If you have held the stock since 2004, any capital gain will be taxed at the lower rate.

Accoding to Yahoo Finance, insiders have sold 616,758 shares in the last 6 months.

The telecoms have had a great run, but like most market leaders, eventually their leadership will come to an end.