What I Am Buying Today.

[bankerboy]

I find it interesting about discussions buying T and BMY. They both seem to have downside risk at this point, T in a big dividend cut and BMY is losing money with bad news from what I can tell.

Interested in the thought behind buying these stocks. Yes the dividend is OK but values seem to be sideways for years.


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[ken-do-nim]

(10-08-2021, 10:12 PM)bankerboy Wrote: I find it interesting about discussions buying T and BMY. They both seem to have downside risk at this point, T in a big dividend cut and BMY is losing money with bad news from what I can tell.

Interested in the thought behind buying these stocks. Yes the dividend is OK but values seem to be sideways for years.


Sent from my iPhone using Tapatalk

T is cutting its dividend because it is splitting off a major portion of the company.  This new company will contain all of their Warner IP, I believe, especially HBO MAX.  (I'm not sure what happens to CNN but I would assume it goes to the new company as well.) I am very interested in owning shares of that new company.  After the split, I may or may not retain the T shares.

[fenders53]

(10-08-2021, 10:12 PM)bankerboy Wrote: I find it interesting about discussions buying T and BMY. They both seem to have downside risk at this point, T in a big dividend cut and BMY is losing money with bad news from what I can tell.

Interested in the thought behind buying these stocks. Yes the dividend is OK but values seem to be sideways for years.


Sent from my iPhone using Tapatalk

BMY has been digesting a large merger and paying off some debt.   To my knowledge they haven't lost any money.  CFRA has earnings growth projected at 10% avg annual over the next three years.  We'll see if that is going to be adjusted down.  Definitely back to trading sideways with the recent dip.  Most large CAP pharma is though so it's hard to process how much is just out of favor sector symptoms.  MRK-PFE and even JNJ are pretty weak on a three year look back. PFE had their moment but back to sideways.  There are others just as flat.  LLY may be the exception. I would have great confidence holding BMY through 8-10% growth. Sub 5% and we are back to a PFE or MRK long-term chart.    

T maybe needs to be more transparent?  I'm not sure details are known for the spin off yet but it is still about 3-4 quarters away I think.  We suspected the stock would bleed off after the initial announcement and it has.  I'm pretty sure the total return is negative for most any look back period over 10yrs. We throw the term "yield trap" around here.  T has been a trap by definition.  Maybe that is about to change but it's hard to assess.

[rayray]

added

amat/mo/mu/sq/t

new

zts/veev

[vbin]

And to add to what fenders said, bmy was overvalued and not it's getting undervalued. Even though the price stayed flat, rev has gone up

[fenders53]

(10-09-2021, 10:55 AM)vbin Wrote: And to add to what fenders said, bmy was overvalued and not it's getting undervalued. Even though the price stayed flat, rev has gone up

Learned this lesson from PFE and a few others. If you are trading during the bull then worrying too much about valuation will cost you, but you better be smart enough to take a profit.  Ignore valuation for a longterm investment and it's highly likely you will be punished eventually.  PFE has mostly been a growing Biz forever but I had to pay for that 50 PE I bought at when it was an extremely hyped market darling

[crimsonghost747]

(10-09-2021, 05:46 AM)ken-do-nim Wrote:

(10-08-2021, 10:12 PM)bankerboy Wrote: I find it interesting about discussions buying T and BMY. They both seem to have downside risk at this point, T in a big dividend cut and BMY is losing money with bad news from what I can tell.

Interested in the thought behind buying these stocks. Yes the dividend is OK but values seem to be sideways for years.


Sent from my iPhone using Tapatalk

T is cutting its dividend because it is splitting off a major portion of the company.  This new company will contain all of their Warner IP, I believe, especially HBO MAX.  (I'm not sure what happens to CNN but I would assume it goes to the new company as well.)  I am very interested in owning shares of that new company.  After the split, I may or may not retain the T shares.

I may also buy some shares in the new company. Depends how big it ends up being and what valuation etc.
I'm just interested in HBO and it's content. There is so much content out there, but few (if any) can rival HBO in terms of quality. I do think that will be a big thing going forward, as people get tired of the clutter and just want something where they know they will find the good stuff. 

I have a feeling that the new company will have quite a lot of debt to start with, so it's not exactly an ideal situation for them. No dividend also so that severely limits the amount that I'm willing to invest in it.

[fenders53]

(10-09-2021, 01:14 PM)crimsonghost747 Wrote:

(10-09-2021, 05:46 AM)ken-do-nim Wrote:

(10-08-2021, 10:12 PM)bankerboy Wrote: I find it interesting about discussions buying T and BMY. They both seem to have downside risk at this point, T in a big dividend cut and BMY is losing money with bad news from what I can tell.

Interested in the thought behind buying these stocks. Yes the dividend is OK but values seem to be sideways for years.


Sent from my iPhone using Tapatalk

T is cutting its dividend because it is splitting off a major portion of the company.  This new company will contain all of their Warner IP, I believe, especially HBO MAX.  (I'm not sure what happens to CNN but I would assume it goes to the new company as well.)  I am very interested in owning shares of that new company.  After the split, I may or may not retain the T shares.

I may also buy some shares in the new company. Depends how big it ends up being and what valuation etc.
I'm just interested in HBO and it's content. There is so much content out there, but few (if any) can rival HBO in terms of quality. I do think that will be a big thing going forward, as people get tired of the clutter and just want something where they know they will find the good stuff. 

I have a feeling that the new company will have quite a lot of debt to start with, so it's not exactly an ideal situation for them. No dividend also so that severely limits the amount that I'm willing to invest in it.

Spinning off debt is much of the goal IMO.  I think it will come with about zero dividend but we shall see.  At the time of announcement I read a lot of posts on other forums stating they will dump T when it gets closer to the dividend cut.  Meanwhile they surrender capital at a far faster rate.  Several years of the too good to pass up dividends given back in a couple quarters while SPY ran higher.  I struggle to see the benefit to buying in before details are known.  If I was going to chance it tax loss selling time looks good I suppose.

[crimsonghost747]

(10-10-2021, 07:11 AM)fenders53 Wrote:  I think it will come with about zero dividend but we shall see.  

This was confirmed in one of the first investor calls relating to this spin-off. One of T's big boys said it clearly that the spin-off company will not pay a dividend at first. Of course things can change as time goes by, but I think it's pretty safe to assume a zero dividend for the first couple of years.

[ken-do-nim]

By the way, it turns out my White Ace historical stamp album is worth under $100 I really had high hopes, all of the contents *seem* rare, but eBay sales show otherwise.

[fenders53]

(10-11-2021, 07:42 AM)ken-do-nim Wrote: By the way, it turns out my White Ace historical stamp album is worth under $100  I really had high hopes, all of the contents *seem* rare, but eBay sales show otherwise.

In general, the more valuable collectibles were not intended to be collected in their original use.  Stamps were very popular to collect for many decades and it was obvious you should never discard them because some day they will be worth a fortune.

[Mr1share]

Bought a few DE, UNH, SRE, LRCX, OHI and TD