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Forum Report
Analyst Workshop for Defining Verizon
Valuation Issues
At the
July 18 workshop meeting,
it was determined that the Verizon Forum should first determine which
company business strategies are viewed as having the greatest variations in
valuation or risk, and then focus on those key issues for our examination of
management’s financial commitments to goals.
As an example of a likely key issue, there is reportedly
considerable controversy among professional securities analysts about the
prospects for Verizon’s fiber-optic (“FiOS”) strategy, with a very wide
range of investment valuations. Finding out how executive bonuses are tied
to the progress of that strategy could therefore influence investor
confidence in it, resulting in a significant adjustment of the entire
company’s valuation.
A workshop for analysts will therefore be meeting within the
next couple of weeks to develop a proposed definition of key Verizon strategy
issues. Assuming that workshop progresses as expected, we should be able to
present the proposed issues for full Forum review and comment within a
month. We will then refine the definition of strategy issues, and on that
basis proceed with the next phase of our program, asking Verizon to provide
the information you need to understand how management is betting on the key
strategies.
Please let me know if you have any suggestions for the analyst
workshop’s consideration. I will of course continue to keep you informed of
developments.
GL – 7/20/07
Gary Lutin
Lutin & Company
575 Madison Avenue, 10th Floor
New York, New York 10022
Tel: 212-605-0335
Email:
gl@shareholderforum.com
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