OT: Stock and Investment Talk
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Wasn't T brought up here around the time of the Warner spin off news some months ago? I think it was low 30s back then said it might have some support 26-27 area. That held for a little bit but broken obviously. Looks like it's in the vicinity of 12yr lows.
Companies with a lot of debt and management that is questionable are worrisome. I know the CEO that straddled all this debt on the company with these takeovers is gone but don't know that the new guy is any better. I think he was part of the management team beforehand.
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Don’t worry - C-dub to the rescue on CNBC to pump HOOD. She needs to go away and thank God she loaded up on TSLA. Without TSLA she would have been completely annihilated.
T is the perfect example of a value trap. Hopeless company, no growth, dividend being cut in half soon (as per their announcement).
Bad play.
I would agree with you at $30…may agree with you at $25…but at $22 you are basically getting the WM/Disc shares for free plus the dividend will still be among the highest in the industry. I’m buying here but that’s because I have high expectations for the WM/Disc shares plus T FCF post-WM spin-off still strong. Who knows…
A “Bad Santa” rally so far, since his call last week, but we have one month to go. S&P down 4% since his 4,800 to 4,900 S&P call. I hope he is right.
Even better, a Santa Gift due to silly emotional people! Back to ATHs soon enough. Don't miss out on this artificial buying opportunity.
Buy, buy, buy.
I love T at $22 as well, but wondering if you might be able to explain how the WM/Disc/HBO spin out is to go? Will it be in a new entity, one of the discovery stocks? Any idea how many shares allocated per how many we own? Forgive me for any stupid questions btw, still learning over here
As an AT&T shareholder you will get stock in the new company (71%) per the press release below. Now, the AT&T stock will likely fall upon receipt of the WM/Disco shares but the idea is supposed to be that the combined value you get between your T shares + WM/Disc shares + future T dividends (albeit reduced) create far more value. I’m shocked T has fallen so much because FCF is solid and I think the WM/Disco company will likely end up with Apple in the next 2-3 years.
“Under the terms of the agreement, which is structured as an all-stock, Reverse Morris Trust transaction, AT&T would receive $43 billion (subject to adjustment) in a combination of cash, debt securities, and WarnerMedia’s retention of certain debt, and AT&T’s shareholders would receive stock representing 71% of the new company; Discovery shareholders would own 29% of the new company. The Boards of Directors of both AT&T and Discovery have approved the transaction.”
If TSLA and SHOP were not in C-Dub’s top 10 ARKK holdings the fund would crater.
Can't predict when emotional people will panic over potentially "bad" COVID news. However, when the market goes down due to artificial news, once the news changes, it will go back up in a blink of an eye (just like in March 2020).
One of my 12 stocks is TWLO. My only red one as of now!
Your week-long ignore is over, try to behave. :)
Thank you so much for the thorough explanation! When BLUE (bluebird) spun off into TSVT (2SeventyBio), I was so confused by the BLUE sheer downfall to not appreciate the new shares.
So I’m guessing it’s smart to try and get to a round number of T where 71% yields best number of shares? Then do you happen to know if all Discovery tickers (DISCA, DISCB, DISCK) will be entitled to the 29%?
I’m a media guy, and couldn’t agree with you more on the HBO Max potential. Despite being mismanaged by ATT, they were willing to take risks and have a better IP library than everyone except maybe Disney/Hulu (Fox). Discovery has great leadership and should be better equipped to take it to next level. I could see Apple or Amazon buying it (especially as separate entity now) but no reason it can’t also work on its own.
I’m with you that it seems to be a shrewd business decision all around. T can focus on its debt, and the segment it’s better at. IP was never really it’s thing. Discovery can go beyond non-scripted entertainment. And HBO Max (WB library) can really thrive. I still don’t know how the Discovery streaming vs HBO Max streaming will work (whether a Hulu / Disney+ arrangement) or one super service though.
Do you happen to know if there’s been an announcement of when the spin-off will occur?
KABOOM, back to what matters over the long run.....earnings:
www.cnbc.com
Snowflake stock soars on strong revenue and Q4 guidance
Shares of Snowflake were up more than 13% after it surpassed analyst expectations for third-quarter revenue and provided strong product revenue guidance.
You should invest in a company that produces sarcasm detectors.
Agreed, but if I was Apple I would scoop up the whole thing. An all-stock deal at $30/share would be immediately accretive to earnings and allow Apple to cross sell billions to their cult.
Original timing was mid-2022 but I saw an article recently that indicated it was ahead of schedule. FWIW, I’m no fan of T management and clearly the idea of “creating value” hasn’t worked out since the stock has fallen since the deal was announced. But, at current levels in the $22-$23 range it seems like you get the WM/Disco shares for free. It’s surprising the stock has gotten crushed so badly despite string together a few decent quarters.
This is an interesting development and I wouldn’t be surprised if Block f/k/a Square takes the modern day pick and shovel approach to BTC/crypto. I’ve always been a supporter of the underlying blockchain tech but felt all the coin noise muddied the waters and was not really necessary. Obviously Block/Spiral will be in the middle of crypto but this screams a tech strategy/play more than crypto.
www.cnbc.com
Jack Dorsey's Square changes corporate name to Block
Square is renaming itself Block as it focuses on technologies such as blockchain and expands beyond its original credit card-reader business.
Signals a big shift to BTC and the crypto market. I may have to add the Company Formerly Known As Square to my crypto portfolio.This is an interesting development and I wouldn’t be surprised if Block f/k/a Square takes the modern day pick and shovel approach to BTC/crypto. I’ve always been a supporter of the underlying blockchain tech but felt all the coin noise muddied the waters and was not really necessary. Obviously Block/Spiral will be in the middle of crypto but this screams a tech strategy/play more than crypto.
Jack Dorsey's Square changes corporate name to Block
Square is renaming itself Block as it focuses on technologies such as blockchain and expands beyond its original credit card-reader business.
Cramer is not right all the time, perhaps not even 50-50, but he's damn right about this (talking overall about the omicron fear). Use this opportunity wisely:
www.cnbc.com
Cramer says to start buying these 'bargain basement stocks' now before omicron fears pass
"For days I've told you we were waiting for the other shoe to drop and it just hit today," the "Mad Money" host said.
That’s where I’m not sure I agree. I think it’s a blockchain tech play WAY more than it’s a crypto play. Square/Block has an entirely separate crypto unit called Spiral. In the end it may not matter but I think Block is really betting on the tech, which is not volatile and unpredictable like crypto. I believe there is a meaningful difference assuming I’m not missing something.
Jack D said (close to word for word) that BTC is the most important technology of his lifetime. Of course Block/Square will not solely become a crypto company, but it looks like it will become a huge part of it. Also, I think Jack already announced that SQ is going to launch its own crypto exchange. To compete against COIN and integrate crypto into its other platforms.
I totally hear you and realize JD is all over crypto but the articles I’ve read lead me to believe that he may view the tech/blockchain as the crown-jewel and will let the crypto chips fall where they may. This goes back to the IBM argument I’ve made many times. The blockchain tech is the real asset for a tech company. The tech does not have to be tied to a coin. The crypto/coins are for speculators/investors, at least until it serves a true transactional purpose. I’ve been waiting for a blockchain company to execute on all the potential uses cases like putting title companies out of business when it comes to home buying. Could that company be Block?
You are missing a critical aspect about cryptos. BTC is not a $1T+ asset due to its blockchain, but rather because the blockchain is decentralized, independent, accessible, and controlled by no one person or entity (like a government).
If a company created its own blockchain, say SQ or FB, not many would use it since it is controlled by a central body.
IMO, you (and a lot of people) need to start viewing blockchain simply as a tech product or service. Forget the coin crap for a second - it’s nothing but noise when it comes to applications especially once the Fed creates the digital dollar. And, nobody but developers minting coins care about decentralized anything. Ex., If Block creates a property title product using blockchain to get rid of useless title companies I don’t want or care about decentralization. Anyway, I’m mainly spit-balling here so I’m def not pretending I have all the answers. JD could have easily merged Block with Spiral if he thought the two went hand-in-hand, but he chose to keep the Spiral crypto unit separate from blockchain. And the company name is now “Block” which says a lot.
CNBC was batting around that Powell's reaffimation of an early taper was really what triggered the market, and omicron just piled on.
Definitely not today. The market s the bed with the "first US case" announcement. And did so on Friday as well.
The economy isn't as strong as Powell is saying, I bet he walks back the taper speed and rate increase timeline within a month or two. His comments with Yellen were more political than economic.
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