Top Trade of the Year candidates are looking like T, VIAC, SPWR, GOLD, WBA, DIS, DOW, KHC, MO, IBM, RIO, BA, and FF. I'm tempted to add TZA to that list!
So who has the best 12-month catalyst aside from starting out undervalued and they also need to have a very sturdy floor around where they are now. Then they need to have great options premiums so we can construct a very likely 300% return spread.
T/Yodi - Not enough bang for the buck on the options. RN makes a good point that the options will suffer on the spin-off. Mostly I'm looking for a good catalyst to grab on to.
- AT&T has continued its seemingly never ending march lower. Losses have accelerated of late byway of a sharp 12% drop recently and are currently residing at only $24.13 a share as of 11/21/21.
- Operationally, it appears the company is actually in very good condition, with strong results in telephony, mobile adds and fiber additions.
- Capitulation may be near as the company has been dropping directly in the face of encouraging results and moves by management to refocus the company.
Since assuming the role of CEO in July of 2020, Mr. Stankey, in my opinion, has made numerous positive moves aimed at refocusing AT&T on the core business of connectivity and telephony.
Mr. Stankey has spent much of his time as CEO so far pruning non-core businesses away from the company. He has sold or wound down a large portion of the ancillary pieces of AT&T, highlighted by the Puerto Rican asset sale to Liberty Latin America (NASDAQ:LILA), among many others.
In addition, Mr. Stankey has rid AT&T of the Direct TV business via a deal with TPG Capital. Direct TV has long been a source of ridicule and distraction for the company and this deal gives AT&T 70% equity ownership of the new entity along with a $7.1 billion cash infusion, along with the ability to remove the steep revenue drops each quarter from the company's books.
