I usually assume sell the news.
I'm inclined to hold both stocks after the spin off for now. If I had to choose I probably would have gone with WMD which isn't like me cause I like divy stocks but not a fan of the ATT CEO.
OT: Stock and Investment Thread
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I'm inclined to hold both stocks after the spin off for now. If I had to choose I probably would have gone with WMD which isn't like me cause I like divy stocks but not a fan of the ATT CEO.
As if this wasn’t a coordinated move by Ackman and Hastings. Hastings makes $200M in a matter of days. Not sure how much Ackman made but I’m guessing it had a lot of zeros.
I saw that news yesterday. Didn’t think to put those two together but I wouldn’t doubt it for any of this type of news in general.
BTW just a correction as I didn't bother to check when you first posted. Divy yield would be about 4.6% based on today's premarket of 24. 1.11 is the dividend.
EDIT: Heard some more details on the ATT spinoff. Discovery will be adding 1.7B new shares on top of the 700M shares currently so share dilution there. ATT they said some might have been expecting split or combo split/spin but it would have been the biggest ever and complex. That could have reduced ATT share count by a bit, so that's not happening anytime soon. Earliest for "potential" share buybacks by ATT would be end of 2023.
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Throw those historical averages. The big 5 deserve higher multiples and a bunch of others. Apples and oranges now. Better to use PEG.
I agree the PE ratio need to come down but they already have drastically cut the Tech PE and may have overdone it. The industrials and other sectors need to be readjusted. Basically, what everyone is now saying, Techs goes up and S&P goes down. Need to be stock pickers instead of using the averages.
All true, but he S&P 500 index has been a very good bet over the past several years. It is essentially a tech index now. 26-27% of the index are the big 5 plus NVDA and TSLA.
T tanking again, cuts dividend in half (which seems to match expectations):
I just edited a post above and put the details of possible reasons for it being down. It's still holding that 24 area for now.
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Yes and then it rallied hard up to the 200DMA around 27, also stiffer resistance up there. It came down after the CEO interview and news on spinoff to that 24 area where I said there could be some support (I picked up some at 23.65). Rallied again back up to mid 25s and now down today on further details on the spinoff to that 24 support area again.
I don't think much of ATT and the CEO. It's kind of an eh stock to me but it's got a divy and they should have the cash flow to support it. Divy is about 40% of cash flow (8B of 20B expected). Divy is about in line with VZ which is about 4.8%. Not confident in dividend growth though but we'll see. It's tradable and has the safety of the dividend behind it for me.
Mind you rates rising could always affect divy yielding stocks too in general but they'd have to rise a bit.
I have some exposure to div stocks, but just via VIG. Lots of value traps in the this area.
It’s called the Stankey Syndrome - every time he opens his mouth the stock tanks. How he still has the job is baffling. The Board is negligent keeping him around.
PYPL still showing strength into earnings. Thought V/MA earnings might have helped buoy it forward. With the strong rally though, I wonder if it might not sell off on earnings unless the earnings and guidance are good.
What % of your assets are in the market? if you truly believe the crash will happen shortly, I would assume you have a substantial % in cash. If you are truly convinced, you would sell your long term stock investments and wouldn’t say you would be able to ride the 10-15 years for the market to recover.
I try to be in cash as much as possible and I‘m still 47% in cash after my recent purchases. I consider the recent stocks purchases value stock due to their PE and their ability to grow into their PE in 1-2 years. The stocks with no earnings deserve to fall substantially as well as other stocks with high PE.
None of the gurus that I follow have indicated anything more than a correction. I agree there will be a crash but don’t sense it‘s imminent.
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Blows my mind that T can’t articulate to investors that TMO offers zero dividend and even after the cut it will still be higher than VZ’s dividend and one of the highest dividend payers around. Also, keep in mind T dividend payment was rec’d today which can cause selling pressure similar to ex-div.
I think the fact that it hasn't broken 24 area is a good sign. They need to show prospects for some growth and reduction of debt to make it really go up. Can't imagine it would break much out of this range 've mentioned until they do that. Besides the CEO, the amount of debt was always a big issue for me. I don't know that they have any prospects for growth in the near term. It's probably an okay place to park some money for a bit. Even as a dividend stock, reduction of debt and earnings growth are important to buoy dividend growth and those prospects seem eh to me in the present.
I should sort of correct my correction above lol. You're right I wasn't even thinking. Like duh the Warner value will have to come out from ATT at the spinoff and that will equate to 6 bucks a share or so. So 1.11 on 18 bucks or so will be about 6%. Mind you 8% yield didn't have investors flocking to it, so can't say that a 6% one will be that much more attractive albeit probably more secure and supported by cash flow.
I'm retired. My portfolio is very diversified. US equities are approx 10% and are large, solid earners in all-weather sectors.
We're in perfect-storm conditions. Hard to see anything other than instability ahead for an extended period. High valuations. High debt. Pandemic lingering. Supply chain woes. High inflation. A Fed that has avoided the inevitable and likely waited too late to cut back on QE and raise rates. Recession likely ahead. Add our domestic political and social division. Russia's posturing. And China assuming more of a role on the world stage.
A 40% adjustment in the overall US market this year would not be too surprising. A recovery after that may be very slow in coming.
Happen to come across this. A couple of meme stock stories and where are they now. Is this a typical Robinhood client?
That quote is priceless. However, lots of folks made big money with GME et al if they bailed at a good time.
Being numb to losing 400K was the one that got me. I'd have to be Warren Buffet or in a coma not to feel that lol.
GOOGL - 20-1 stock split!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
20:1 stock split Nothing special about it besides psychology but might make it more accessible to the average retail guy.
In all of Big Tech, Google is a lay up. If it wasn’t my single largest holding I would have been buying on the recent dip. Only the regulators can stop that juggernaut.
Absolutely psych, but look what happened with TSLA, AAPL, NVDA, etc. Great time to announce the split (after crushing earnings again!).
My #2 holding.
Now you see why I'm always willing to take some profit and sold some at 170. 155 area has been support. It broke through it intraday on that woosh day but retook it the same day and then bounced off it a few times.
I think it had a nice run up after due to Visa/Mastercard earnings. That's why I was wondering above if it might sell hard if anything is amiss.
I'd hold up and see if the 155 area holds through this. 120s is where I'd examine it again after that.
I’m avoiding that whole space but then again I’m down in PYPL and SQ so I’m pissed. I can’t make sense of FinTech.
I know everyone views it as that but I'm a simple guy lol. I just view at as a payment processor the same way I view V and MA (my favorite names in the space). This is 3rd behind those 2 for me.
I'm still thrilled with AMD's performance. Bodes well for all semis. I'm still huge in this sector with SOXX. Also bought a bunch of NDVA during the recent dips.