With Verizon expected to announce the launch of CDMA enabled iPhone on Jan 11, should I buy, sell or hold?

Verizon is expected to announce the launch of the iPhone tomorrow. This is not news to anyone as people have been speculating this for months. The stock has gone from $28 to $36 in the last 6 months. The stock still has a pretty hefty yeild, but that is not the topic of the discussion today. Jim Cramer on Mad Money today reiterated his $40 short-term target for Verizon and said that it will continue to go higher, but it will be slow because it offers a nice dividend.

There is an old saying in wall street, "buy on rumor, sell on news". To that end, I would recommend that if you are not already in Verizon, then do not buy the stock tomorrow if it is high. If the stock goes down, you may want to start a position in it. While some people book profits in VZ, other At&T shareholders may dump T and move to Verizon.

If you are already a shareholder, then lets go back to stock basics. Why did you buy this stock? Was it a trade on the iPhone play or is it a long term investment in verizon? If it is a trade, then you should look to exit based on how the stock performs tomorrow. For me, it is an investment. I reinvest my dividends back into the stock. I started a position at $28 and change. (Full disclosure: I am a long Verizon shareholder).

If you share a different opinion, please use the comment feature and share your thoughts.