What I Am Buying Today.

[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.


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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.