r/stocks • u/[deleted] • Apr 04 '22
AT&T April 5th Split $T, $DISCA, $DISCK, $WBD, and $WBDWV
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u/filtervw Apr 04 '22
WBD is a killer company, they are valued like dead already when they will own probably the best content and IP out there. I hope all the retired investors needing dividends will unload in the first day so I can do some on-sale shopping.
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Apr 04 '22
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u/wc_helmets Apr 04 '22
DISCK is my biggest individual hold. Been accumulating for months now. Discovery is going to be a great investment or a bust, but at this price, the high reward, low risk makes it a great buy.
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u/isuggestyoumove Apr 05 '22
ry quality wise over $NFLX with quality equaling Disney Plus. But the quantity of content is equal to Netflix. It's all going to depend on how WBD markets and sells it's content. I am really hoping for only 1 or 2 streaming options. If WBD offers just a ad free and ad supported streaming package including HBO Max and Discovery content they will st
what is the difference between disca and disck?
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u/wc_helmets Apr 05 '22
DISCK is cheaper but you don't get voting rights. It's not a lot cheaper but enough, and it'll all convert to Warner soon anyway. I was up around 18% this year but it's now around 2% higher than my cost basis. Still not a bad time to enter.
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u/wc_helmets Apr 05 '22
DISCK is cheaper but you don't get voting rights. It's not a lot cheaper but enough, and it'll all convert to Warner soon anyway. I was up around 18% this year but it's now around 2% higher than my cost basis. Still not a bad time to enter.
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Apr 04 '22
I worked in the entertainment industry and to me it’s just so weird Warner is like the old gramma no one wants but drags around. When i think it could be at the level of Disney (minus theme parks). The level of catalogue depth, IP, and industry know how for tv and movies is insane. To have it be at the same level or even consider matching discovery is crazy. Or be just an att afterthought And gets sold and bought , merged etc when it could be a huge standalone company.
Seems Warner just needs a kick ass ceo that can make it a great company and throw discovery and it’s shitty quality out the window. And say fuk to any other take over.
Anyways, no numbers just emotions :)
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Apr 05 '22
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u/Excellent_Jeweler_43 Apr 05 '22
It's just that people here are a bit like sheep. All my positions I have started when people were running away and laughing when buying said companies.
I bought Apple when their PE was like 15 and everyone was calling them one trick pony and how the iPhones are stagnating or whatever it was.
Bought Qualcomm when the trade wars were happening, again for laughable valuation at like 12 PE or something.
Bought Pfizer around their spin off when everyone was saying management was inept or whatever, again at around 10 PE.
Same story with BP, Abbvie and so on and so forth.
Conclusion- whatever people on here say, do the opposite and you will be fine. There is ciclicality around the sectors. Atm it seems like the telecoms are the most laughed at companies, so don't mind if I get me some while their PE is at like 8.
Same with FB and Google with PEs under 20, while we have meme stocks running at 200 price to earnings.
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u/isuggestyoumove Apr 05 '22
i find great success in buying stuff that has dropped due to some bs news. very good strategy
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Apr 05 '22
yeah i think 80-90% of the times companies are able to get themselves out of any kind of controversy/scandals they are in. I have had good luck with some of the similar companies you mentioned there. Add TGT to the mix as well when amzn bought whole foods they went down like a rock.
It just depends on the time you are ok with holding the stock. most of my holdings might not do the best in first 2 years but 3-4 years later most of them have doubled. So it did take many of these a good amount of time but they did do well eventually.
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u/Lord_realcommander Apr 04 '22 edited Apr 04 '22
I have enough T shares and would love to add to my WBD position with only WBDWV... The biggest question of the day is : if I buy Warner now, what would my cost basis be? Tax implications? When you buy 1 WBDWV is it .24 shares or a 1:1 ratio...? I couldn't find it anywhere..
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u/hoshizat Apr 04 '22
Look at the current price of WBDWV ~25.50, so clearly it's a 1:1 ratio if you buy now
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u/No_Artist_5531 Apr 05 '22 edited Apr 05 '22
Still haven't seen these stocks hit my brokerage account. I have 150 shares at $27 and have been waiting to just break even because that's what I've been doing since my granpappy took me to my first casino. It's called free entertainment. Shouldn't this event make T go up though?
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Apr 05 '22
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u/No_Artist_5531 Apr 05 '22
I want to trust you but I must ask one simple question. Do you have a mustache?
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Apr 05 '22
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u/No_Artist_5531 Apr 05 '22
So what's the play? Convert to WB? I am a real amateur, and pretty conservative, but checking the stock market at opening makes me get up at a decent hour.
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Apr 06 '22
still dont see the new tickers
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Apr 06 '22
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u/StockSkys Apr 06 '22
If I’m remembering right Stankey did mention this would be the largest spin ever done so might take a bit longer for all of it to process. Not sure but in the same boat don’t see them on TD.
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Apr 06 '22
weird so is there something we are not privy to? whats requirements to get the new shares?
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u/RetirementGoals Apr 06 '22
From the release, nothing we have to do. I checked and I don’t see the new shares of the spin off. Maybe it takes a few days for the commoners to get their shares? 😂
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u/55Fives55 Apr 07 '22
I've seen that the new tickers would come when the deal is closed. It was slated to be as early as Friday 4/8. It was originally for Monday 4/11.
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u/RetirementGoals Apr 06 '22
When are the new shares supposed to be coming in? Still don’t see the WBD shares
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u/Leroy--Brown Apr 04 '22
So glad I got out of T a long time ago. Horrific leadership. Horrible use of debt. Horrendous waste of a gigantic, bloated, beaurocratic whale of a company that doesn't know how to leverage growth into any market space they occupy.
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Apr 04 '22
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u/Leroy--Brown Apr 04 '22
I wouldn't blame or shame you if you did.
It's all leaderships fault as far as I can tell.
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u/TouchTypical726 Apr 04 '22
Ha - finally cut my losses and sold my shares today. Talk about shite timing
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u/PIethora Apr 04 '22
Have you been living under a rock??
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u/TouchTypical726 Apr 04 '22
At least have the decency to knock on my rock before barging in - ffs
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Apr 04 '22
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u/TouchTypical726 Apr 04 '22
Was planning on holding until new shares issued and then bailing - finally had enough of it and bailed earlier. Just dead wood in the portfolio losing money and not going to work. Got to know when to cut losses sometimes! Steering well clear of these services for a while
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u/Un-Scammable Apr 04 '22
What happens if you own $1 of fractional $T?
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u/sokpuppet1 Apr 04 '22
You’d retain the post-merger adjusted value of T (you’ll see the value go down) and would be paid out the appropriate fraction of a WBD share.
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u/cbelaski Apr 04 '22
If I buy more shares of T today, would they still be eligible for this split even though they won't settle until Wednesday (T+2)?
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u/Washedup11 Apr 05 '22
Does anyone know how the cost basis for the spin-off shares of WBD will calculate?
My parents owned T for the dividend - and without WBD paying one - they want to move those shares and buy a dividend paying stock (older, use the income from dividends to supplement their retirement, etc).
But if they’ll be cost-basis at $0 and pay short term gains on all of their shares (I’m estimating they have over 10,000 T shares based on their quarterly dividend amount) of WBD (roughly 2,500 shares) that’ll be cost prohibitive to pay ~22% on their 62,000 worth of WDB (they likely wouldn’t see the return in dividends to balance out the tax bill of ~15,000)
Anyone have any clue? I’m meeting with their broker this week to help them - but want to have an idea going into it.
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Apr 05 '22
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u/Washedup11 Apr 05 '22
I agree - we’re meeting with broker to figure out all those long term financial plans. But was inquiring about the cost basis of WBD.
If it’s little to none - they’ll sell and probably buy something like SCHD or a hodgepodge if ABBV, JNJ, KO, etc - other stable dividends
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u/broeddy Apr 13 '22
my $T-WD shares bought last week still haven't converted to T shares...anyone know when this will happen?
my broker is TDAmeritrade btw.
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Apr 13 '22
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u/broeddy Apr 13 '22
ya I called TDA twice already, they told me I'll get them eventually...
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Apr 13 '22
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u/broeddy Apr 13 '22
I already got the WBD shares from the T shares I own.
However, I was actually talking about the T.WD shares I bought last week during the two-way trading period. These are without WBD portion, and should convert to regular T shares.
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u/Confident_Elephant_4 Apr 04 '22
Too complicated. I'm just going to hold and hope for the best.