AT&T Inc (T)

[OMOLIVES]

To be laymen...24% above current share price at ex-date - less the diluted share increase - less sell off of distributed stock.

:) ..have fun with that.

[OMOLIVES]

If you want income...you should do both. You have to dump the spin off though. Unless they decide to pay a dividend..which would be extremely low ...and most of all doubtful.

There are two Companies that have made correct decisions lately. One being At&T getting back to basics and the other being BP...shedding oil assets and moving into the next category.

I have no idea why anyone wold want Warner/cable/satellite..et al. The worst crap T ever did.

I have the spinoff valued at $13 per share...which is a rough 60% discount after a sell off. Super extreme(as in not happening)..but if you don't do the extremes ...you are screwed. Everything above such is a bonus.

[bar1080]

If that's the case then T shares will drop to almost zero.

[Spicknspan]

Probably best to wait for the actual spinoff before buying T

[lennie]

Any idea when WBD will be able to trade under their own stock symbol plus your feeling as to their beginning stock price. I have seen anywhere from $24 to $30 per share.

[leftovers]

AT&T (NYSE:T) declares $0.2775/share quarterly dividend. That comes in line with company's already declared annual dividend of $1.11 per share expected post-close of the pending WarnerMedia spin-off transaction.

[OMOLIVES]

You all should read that...lol. This is going to be fun!

[OMOLIVES]

FYI: https://www.businesswire.com/news/home/20220325005425/en/ATT-Announces-Details-for-Completion-of-Spin-Off-Ahead-of-Close-of-WarnerMedia-Transaction

[OMOLIVES]

Welp'...no bonus divi' ..but now have a timeline for execution. Thank God!

[OMOLIVES]

You have time..just understand that the share price here will drop substantially. The upside is that when the ex-date is announced...this will trade higher.

Individuals will come in after though if the drop is pulling in a 6 point yield on a low share price..lol.

[WarBuf]

Anyone know the 'snapshot' date for the deadline of the Warner Media share allocation? I want to know if I have more time to add more shares. It could have already passed but I can't find anything on it.

[OMOLIVES]

I know...there is a reason it dropped by so much. At this time it is not healthy due to circumstances beyond it's control. Very risky currently..but definitely something to watch and wait for!

[OMOLIVES]

Well..that debt level for AT&T will be reduced by 1/3 after the spin off/merger.

[OMOLIVES]

Well, that would solely depend on your perception of the merger/spinoff. If there would be a hint of a dividend down the near road... that may change my mind. I don't like those type of businesses...and why I am so glad it will be shed from AT&T.

[lennie]

I don't have a feeling either way as to should I purchase additional shares of T now to receive additional shares of the new company when the spinoff occurs or just wait to purchase the new company shares after the spinoff. Appreciate your thoughts.

[OMOLIVES]

Near the ex-date of spin/merger. Once the date is placed...yes. Not sure how much though...this has been an odd price play currently...but loving it!

[OMOLIVES]

I am using a sell off figure of $13 per share. Key word(plural)...and repeat ...sell off. I have no idea what the actual value of perceived price will be..just know that some shares will be dumped after such. I think that is very conservative and extreme..but best to air with caution.

I am adding on the 31st/1st of April.

[lennie]

Does anyone have an idea as to what the price per share of the new company will start off as .

[fastlane2000]

is this thing going to take off?

[OMOLIVES]

So ..I don't trade this stock...it's income..eh? But, a smart trader would be coming in early ahead of the chasers for those "so called" free shares. They are never free..but that seems to be the dumb lingo.

This should approach USD30 some time in the coming weeks(later..than sooner). The rush comes with the ex-date.....and the next ex-date is critical for divi'?..and beyond.

[OMOLIVES]

lol...I left something important out. On that same day I dumped that Pfizer spin off and also dumped that IBM spinoff. That IBM spin was total junk..and the Pfizer spin was a sweet bonus thanks to Pfiz' not cutting their divi'...thank you Covid(sorry to say).

I should have had that included in the equation given that it was the complete plan. Just wanted to keep it clean..but it was a sweet "total" play.

[bar1080]

OK, thought you were talking about basketball

[OMOLIVES]

First, It's a "so called" fluid annuity given that I discounted it @ 54% form it's current price. Given that my "so called" basis is $13 per share at a 5.7 year life cycle, my principal basis is $9360 associated with the divi's.

If on/after that 5.7 year life cycle the price is static with today's price I have retained principal and have been paid $9400 plus. Adjust accordingly.

Second, a 4 point play is an entry into an income based security that pays 4% divi annually. I'll take anything over 3 points...but nothing insane.

My cushion is that bonus of $1040 :)

[bar1080]

What's a "4 point play?"

"I'll just cash out and place such in some other 4 point play."

[OMOLIVES]

Too funny. Because that is exactly what it is.

T ex date 01/07/2022 CASH $0.52

VTR ex date 12/31/2021 CASH $0.45

I gave myself a fluid annuity that retains principal and pays out for a minimal of 5.7 years. Pretty sure that can be extended for a decade or maybe I'll just cash out and place such in some other 4 point play.

What makes it so special is that I was paid a fat bonus of $1040.00 for doing such given the ex-dates.

And so it goes...

[bar1080]

Well, I read that arithmetic three times and don't see anything that resembles "making off like a bandit."

I hold a bit of T that's been in my family for >40 years. Never been much of a stock, especially lately.

GL

[OMOLIVES]

VTR divi @ $1.8

T divi @ $2.08

I grabbed twice as many shares of T off my exit and grabbed a bonus divi playing the ex dates...and should get at least one more divi from T which nets a plus overall

New T divi @ $1.11

For 1000 shares of VTR recieved 2000 shares of T

Lose $1800 divi from VTR and gain $1100 off of T based on new divi

Net loss there of $700 annual after spin off

New T divi loss on existing 1000 shares is $ 920

So at first glance that would be a net loss of $1620

*Enter new DISCA shares of 720..and go full tilt on the extreme price sell off @ $13.00 per share

That is a gain of $9360.00 minimal :) if sold

$9360/$1620 = 5.77

I have not lost a dime on the extreme and kept current dividend in tact for 5.77 years. I am excluding any divi from discovery(which I should)..and have cut their current price in half. I have also excluded the increase in divi via T over the 5.77 year life cycle. And finally, I have excluded any static price movement in the new shares delivered. As, such..if I played foolish and expect the price to remain static for those new shares...said life cycle is extended for an entire decade plus.

[bar1080]

Explain exactly:

"made out like a bandit exiting Ventas and adding here."

[OMOLIVES]

Sweet ass deal! I made out like a bandit exiting Ventas and adding here.

[leftovers]

Dividend cut is here....

[marcis]

News: T cutting dividend in 1/2 one of the highest in the market

Is was a good thing to hold just for the divi

Should see a uptick on shorts buying

[12Jokera]

Begun*

[12Jokera]

Here's a t virus translation when the air waves get taken over it's gonna look something like this

Ted Turner already has been axed already by his own company. The invasion has already.

[chessmaster315]

Not necessairly, would it result in a NET dividend haircut!

While Im not gonna guess numbers, with the spinoff we would own some discovery, instead of T.

We can then choose whether to keep the discovery shares, or sell them, buy more T, or another dividend producer.

I dont have all my portfolio in dividends tho I do have 60 percent or so in dividend stocks/etf's etc, such as T.

"If" we chose to buy more shares of T with our sale of Discovery shares, then we would have more shares with which to get dividends on. So, the net may be more, may be less or come out in the wash.

Here is the deal. Investors like certainty. Many are risk adverse. So, "fear of what happens" this quarter, (like a dividend haircut) drives risk adverse investors away.
But, it appears like the "fear" is highly over rated. Discovery is a good company, we have it on our TV. It competes super well with Netflix. Netflix has more, but I like the tv on discovery better.

Netflix allows us to share accounts in the family..even in different states..with a username password.
Netflix will lose subscribers in droves if they stop that.

But, discovery is cheap. 4.99 a month and an extra $3.00 per month for "no commercials". Well worth it for $7.99 per month. Its a much better buy than netflix, and the respective shares are also a better buy.
Discovery is a hidden gem.
We signed up for it "because we liked discovery chanel" and we sought it out. Reminds me of why Tesla does have a lot of commercials, but is sold out of cars for about a year.

We need to "trust the captain of the ship" and his team (board of directors), to navigate us through this rough storm. The BOD's careers are at stake, too! Remember, most of us really dont know how to steer this Boat (T) and so we elected a BOD team who did. We should trust our captain until we know better. I have family who served in the navy.

[OMOLIVES]

I know what I smell .. https://www.barrons.com/articles/att-discovery-stake-spin-split-off-51642190515

[leftovers]

T Bucken the Market down draft !

[Nivea67515]

Bought some T after hours

[chessmaster315]

It sort of reminds me of buying cattle.

You see, the price of beef is up significantly this year, at least 20 percent.

This makes live beef more valuable, too.

My local ma and pa grocer and butcher "no longer sells 1/2 of a beef or 1/4 either".

I asked them why not?

They said because beef price is going up so fast, that by the time they got the beef cut up, packaged, frozen and picked up by the customer, the beef price will likely be higher and this could well mean they wind up selling the meat below their cost.

This was not a problem in the past because beef prices were stable. Now, they are increasing so fast, they dont want to commit to sell large quatities at a fixed price.

This small ma and pa grocery can not afford to lose money on its butcher department.

In a way, you are buying a live beef, with ATT, and hanging on to it until the spinoff makes it worth more.

In a similar way, I recently made an order to buy a 52 miles per gallon Toyota Corolla Hybrid.

Its my opinion, oil will go up..to as much as $125 per barrel in year 2022. (Chase Bank has predicted $125 oil)

Of course, if oil is $125 a barrel, then gasoline will likely be 6 or 7 dollars a gallon...Maybe more.

And, a gas sipping car will be valuable and in demand.

I have already made money on the last 3 new cars I bought since 2019.

A popular, hard to find, new car, often "increases" in value as you drive it off the lot, especially if you can find one for sticker price or less.

I paid 34k for a 19 Silerado with a MSRP of 46k in 2019.

In 2021, I sold the 19 silverado with 15,000 miles for 38k.

Why? Well the new comparable silverado's are 56k but you cant find them.

So, if a guy comes in to buy a new one, and they have none, my 2 year old like new Silverado can be worth $50k or more, as some people dont want to wait and wait for a new one to arrive, when there is a nice certified, near new silverado available.

Buying T now, is like buying a new silverado in 2019.
I got to drive the new truck for free (no depereciation) and even get paid for driving it 2 years.

Inflation is going up so fast, that many new cars dont depreciate, they inflate.
I understand used car prices are up 42 percent in the past year.

[chessmaster315]

Your welcome.
More than "one" of us think that the spinoff will result in a special dividend equal to the value of the new spinoff company.
We dont know if the new company will be a dividend payer or not, however.
This will mean the investor can, of course, elect to sell shares of the spinoff company, and buy additional dividend paying stocks, such as T.
If you do buy additional T shares, after the spinoff with the value of the new company, it could well be that your net income from the dividends increase.

Current T shares dividend.. .52 per quarter.

After spinoff. (?) dividend plus value of spinoff company. Or, (?) new dividend after spinoff PLUS
(?) number of additional shares of T purchsed with the sale of the spinoff company.
Yes, there are unanswered questions, and this is likely why the stock has declined from around $30, to 22, and now recovered within about 10 percent of the $30.
T is adding subscribers..lots of them, both in the prepaid cell phone, and with the new fiber internet.
The new fiber internet is faster, and people buy "faster" when it comes to computers. Who wants a "slow" computer? Most people dont like waiting, and definately dont like waiting on a computer.
Just the other day, I was on the phone with customer service, and she apologized her "computer was slow".
A slow computer costs the company money, because it takes additional labor hours. Buying a faster computer or faster internet is almost always cheaper than hiring more people to do the same job with slow computers.

[catty]

OMOLIVES: I doubt the new company will pay a dividend. too many unknowns!

[OMOLIVES]

As in, will they be paying a dividend and what your holdings will be..eh?.. :) I hear ya'

[catty]

OMOLIVES: Agreed - however, most present investors are in T for their dividends, they have to attract new investors. And as a new investor I"m more interested in the new company. JMO

[OMOLIVES]

It would raise the value of AT&T stock though.

[catty]

OMOLIVES: IMO exchanging shares for shares would be a big negative because that would cut the T dividend. A spin off would be much more preferable. However who ever knows what T Management will do.

[catty]

chessmaster: appreciate your taking the time to express your observations. (it''s like playing chess!!!) I just took a small position because I'm interested in the spin off. will have to see what the allocation will be. I'm assuming the dividends will only be paid by T (not the new company)

Heard that T will own 71% of the new company. At least that's a positive.

[chessmaster315]

Correct.
We dont know exactly how much ATT shares will be priced at when the spinoff occurs, nor do we know the precise market value of the spinoff shares, because the board can not accurately predict "where the stock market will go" prior to the spinoff.
So, they wait and see, then base the spinoff on current market prices, rather than the prices they guess they will be in 6 months or however long it takes the spinoff to finally happen.
We dont even know the exact date the spinoff will happen.
Its like guessing when the Supreme court will make a decision.
Few people want to bet their reputation and career on "an estimate" of what the market share price will be at an unknown time in the future.

[chessmaster315]

No, we dont know what the allocation of shares of the new company to current T shareholders will be.

Here is what we DO know.

AT and T shareholders own T. We elect the Board of directors, and, can OUST one or more board members who act "outside the interests of ATT shareholders".

In other words, we elect the board, and put them in charge of managing OUR money. We expect, and get, the board to do a good job with our money, and make decisions which benefit shareholders
INCLUDING things like the allocation of shares in a spinoff.

Shareholders upset by the allocation can, should, and likely will be angry with a spinoff which is unfavorable to shareholders.

Many Board of directors have been ousted in the past, and a new board elected.

Indeed, there are billionaires out there right now, looking for companies who have been mis managed, then they acquire a position large enough to oust what they perceive are a board of directors who do NOT act in shareholders best interests.

The board of directors job is dependent fully on the shareholders. We are their boss, and we want a good spinoff or else, the board can be fired.

The present ATT board is acutely aware that an unfavorable (to shareholders) allocation of shares would mean the end of their career. (Other companies would not want board members who blew it for ATT either).
ATT was a dividend aristocrat. About 25 years of dividend increases. This is an elite list of about 58 of the top companies.
"If" the spinoff is favorable, it could remain on the dividend aristocrat list. In other words, if the board drops the dividend 5 cents, but gives us shares in another company worth 10 cents (twice as much) its not a dividend reduction, its a dividend increase.
We have to trust that the board will (continue) to act in shareholders best interests. When we buy shares, we always assume management (the board) will do a good job taking care of our money.

[OMOLIVES]

The issue is if you will need to exchange shares for shares(or similar)...or get shares for shares. I think they left that open..as in...to be determined later.

[OMOLIVES]

No idea on share allocation or how. Only known is the reduction in the "T" dividend pay out..which should be reduced by something like 40%.

[catty]

Iamswer one of my questions: AT&T will own 71% of the new company - would love too know wat the alloction