Hope everyone is doing well & isn't getting too blown out in the carnage today in the majority of the market.
If you're looking for something boring to put your money into, AT&T didn't used to be an option, but it's now gotten to a price where it's beginning to look interesting.
Back when the split was announced, I remember doing some back-of-the-napkin math and coming to the conclusion that the cheaper end of the map would be about 22 a share, which we very nearly touched recently. Plus, the juicy 9% yield. seems compelling as a place to hide until the higher beta black hole passes, if you feel like bailing. Or, levering up on a 2x position for an 18% yield on this stock which trades like a bond. Only thing to track is the upcoming separation where you'll get two companies.
Didn't they announce that the dividend will be reduced to some unspecified level as part of the Discovery deal?
In any case, the bearishness on that name is off the scale. On a weekly chart, the RSI(14) made a new all-time low this week. More oversold than during the pandemic low in March '20, more oversold than during the GFC in March '09, and more oversold than during the dot-com crash in 2000/2001.
PropNotes
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@matthias, the divvy will be cut, but that was part of my back of the napkin math and is likely also a part of this selloff as people are sizing up what the post-split co's will look like. Net net you will recieve like 7.5% COCR vs the 9% u get now so a cut but not crazy - also you're getting a light n fresh media company with room for cap appreciation so it seems decent
In any case, the bearishness on that name is off the scale. On a weekly chart, the RSI(14) made a new all-time low this week. More oversold than during the pandemic low in March '20, more oversold than during the GFC in March '09, and more oversold than during the dot-com crash in 2000/2001.