In January 2000 as AOL and Time-Warner were getting togther, not a single analyst saw anything that could possibly go wrong. Yet that marriage quickly gained the status of the worst merger of all time. Now as AT&T buys Time-Warner we are hearing the same rosy rheotric we heard back in January 2000. If there are problems ahead, we will only be able to detect them in the price action. Forget the analysts. They tend to instantly like any buy-out. Let us employ this opportunity as a technical tutroial and look to the price charts.
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