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Old 05-18-2021, 08:08 PM   #41
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T said they will pay the current dividend amount util the merger in 2022.
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Old 05-18-2021, 11:11 PM   #42
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Originally Posted by JustKickItForward View Post
So, what actually happens on a spin-off as a shareholder? From the principle invested into a pre-spin off stock, post-spin off, would we have the same amount of $ in total stock owned?
Yes that is how it should work.

I was partially paying attention to a video clip from CNBC on the day of the announcement so don't take these numbers as correct (Jim Cramer was speaking if I recall correctly), where he said AT&T shareholders will receive ~75% of the new company in the spin-off without any tax consequence. Which I took to mean that at some point in the future AT&T investor relations will announce that shareholders should take their existing cost basis and assign X% of that towards $T and Y% towards $SPINOFF. Where they would then provide the formula for calculating how many shares you have and their cost basis.
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Old 05-19-2021, 09:53 AM   #43
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I read an opinion on seekingalpha today that basically looked at it like this: T stock price $29 + $3 in Divvys over the next 2 years plus he values the spinoff at a minimum of $8 so basically in his estimation at a total of $40 you get a return of about 38% over the next 2 year period. Just 1 persons take on it.
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Old 05-19-2021, 10:53 AM   #44
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I still have 400+ shares of it (for years now). I'm still selling OTM cash covered put options on it every few months and making a few dollars to bank. I'll keep it until "the end" I guess.
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Old 06-08-2021, 08:38 PM   #45
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I read an opinion on seekingalpha today that basically looked at it like this: T stock price $29 + $3 in Divvys over the next 2 years plus he values the spinoff at a minimum of $8 so basically in his estimation at a total of $40 you get a return of about 38% over the next 2 year period. Just 1 persons take on it.
Pretty sure someone texted me that same article. If all it would take to get a return of 'about' 38% over the next 2 years, is for the share price to stay around $29 until the spinoff occurs, seems like mutual funds, institutions, & retail investors would be pouring in ?

On the day it was announced, I plugged T into a technical analysis rating website. According to them, there was/is very strong support at $28.90.
I put in a buy order @ that price the same day, then 'literally' forgot about it.

This morning I received an email from Fidelity telling me the order had filled.
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Old 06-08-2021, 08:49 PM   #46
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Pretty sure someone texted me that same article. If all it would take to get a return of 'about' 38% over the next 2 years, is for the share price to stay around $29 until the spinoff occurs, seems like mutual funds, institutions, & retail investors would be pouring in ?



On the day it was announced, I plugged T into a technical analysis rating website. According to them, there was/is very strong support at $28.90.

I put in a buy order @ that price the same day, then 'literally' forgot about it.



This morning I received an email from Fidelity telling me the order had filled.

Just my luck, today was the first day it traded ex-dividend
What website you use for the technical support level?

Also, T traded Ex-D on 4/8, not sure why you thought today was Ex-D.
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Old 06-08-2021, 10:08 PM   #47
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What website you use for the technical support level?

Also, T traded Ex-D on 4/8, not sure why you thought today was Ex-D.
Here's the site I use for technical analysis.
https://www.stockconsultant.com
Pretty sure it limits you to 3 or 4 per day.

As for the ex-date, I had it wrong.
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Old 06-09-2021, 06:42 AM   #48
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What website you use for the technical support level?

Also, T traded Ex-D on 4/8, not sure why you thought today was Ex-D.
My experience (limited) with spin off companies is that the value is split. If T is $30 today and spin off company is a $8 value, then T would be adjusted to $22 on effective date.

Regarding the dividend, I'm hoping to see a little bit with the spin off company, like VIAC. Maybe 1-2%? May make the natives happy...
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Old 06-09-2021, 10:05 AM   #49
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Pretty sure someone texted me that same article. If all it would take to get a return of 'about' 38% over the next 2 years, is for the share price to stay around $29 until the spinoff occurs, seems like mutual funds, institutions, & retail investors would be pouring in ?

On the day it was announced, I plugged T into a technical analysis rating website. According to them, there was/is very strong support at $28.90.
I put in a buy order @ that price the same day, then 'literally' forgot about it.

This morning I received an email from Fidelity telling me the order had filled.
Yep, there are a lot of articles over on seekingalpha dot com promoting high-yield stocks, REITs, MLPs, whatever.

Then the comments point out problems with the coverage ratio, or the history of price declines, etc.
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Old 06-09-2021, 01:59 PM   #50
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Yep, there are a lot of articles over on seekingalpha dot com promoting high-yield stocks, REITs, MLPs, whatever.

Then the comments point out problems with the coverage ratio, or the history of price declines, etc.
3 days ago, someone copy-pasted an article (allegedly) from Forbes magazine on the T message board.
If it's legit, sounds very similar to the seekingalpha article.





A buyer today investing $30 will gain:

$2.08 in dividends per year until the deal is closed.
Two stocks (AT&T and the NewCo) with a combined worth $35-$40+ when the spin-off occurs in about a year.

That's a total return of 20%-40% in the span of about one year. It's also entirely possible that the NewCo will be trading at such a high valuation that the AT&T investor who sells his share in the NewCo (when it starts trading or a few months later) and re-invests back the funds in AT&T may not lose a single penny of income.

We’re long AT&T and we took a decision from the start not to sell. I personally added to my position yesterday morning at open when the market was in full panic. I will be happy to buy more if the price drops further.
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