30 more AT&T #700 Optimal Strategy of Playing the StockMarket via VonNeumann Game Theory

PORTFOLIO of PAF on 18Jan2022
T 31,900 AT&T
GSK 1,200
VZ 100
__________
33,200
Total share-wealth-units last reported which was 1Nov2021 was 33,170.
And total share-wealth-units today 33,200 , and today is 18Jan2022.

So today I spent excess cash-- my GSK dividend on 30 more shares of AT&T, at 27.33 per share.

And there is splendid news out of GSK, Glaxo in that Unilever wants to buy the consumer division of GSK and today GSK went up 3% on price.

But there is also news on AT&T that I am looking closely for, and paying close attention to. On the distribution of Discovery shares once the deal is completed sometime this year. I am expecting the **spin-off** not a exchange. I am expecting what Verizon did with one of its subsiduaries a few years back where they spun off the subsiduary and I received a few shares-- 10 or 100 shares of the spin off (can not remember how many).

But some writers talk of AT&T choosing between a spin off and a exchange. Where owners of AT&T stock surrender their AT&T shares and get Discovery shares in place. No, I am against such a payout. The other is like Verizon where each share of Verizon gets a share of the spin off and not lose a single share of Verizon.

So I have to keep my eyes wide open on how AT&T distributes its shares of Discovery. I figured out some months back that my near 32,000 shares would garner somewhere about 4,000 new shares of Discovery, keeping all of my 32,000 intact, plus adding on the 4,000 shares.

I expect that is what AT&T will do-- Spin-off to its shareholders.

And not do a Exchange where AT&T shareholders lose their stock to exchange for Discovery.

I am pretty sure AT&T will follow the example of Verizon when they spun off their companies.

AP

400 more AT&T #701 Optimal Strategy of Playing the StockMarket via VonNeumann Game Theory.

Thank you so so very much AT&T, perhaps the greatest single investment in stocks I ever made. For there was news yesterday of a spin off of Discovery and each share of AT&T garners 0.24 or almost 1/4 of a share of Discovery. That means my 32,300 shares of AT&T will gain for free approx 8,000 shares of Discovery. Thank you, thank you, thank you AT&T. Far better of an investment than was Verizon in those years of investing.
PORTFOLIO of PAF on 2Feb2022
T 32,300 AT&T
GSK 1,200
VZ 100
__________
33,600

Total share-wealth-units last reported which was 18Jan2022 was 33,200.
And total share-wealth-units today 33,600 , and today is 2Feb2022.

So today I spent excess dividend cash by AT&T to buy 400 more shares of AT&T, at 24.25 per share.

Of course, there is that splendid news of a spin-off of Discovery shares of 1 AT&T share garners 0.24 shares of Discovery.

So sometime soon in the future, I can add 8,000 shares of Discovery to the above Portfolio.

Thanks AT&T, certainly one of my best investments in stock market.

AP, King of Science, especially Physics

Switch campaign of 500 GSK for 920 AT&T #702 Optimal Strategy of Playing the StockMarket via VonNeumann Game Theory.

PORTFOLIO of PAF on 31Mar2022
T 33,220 AT&T
GSK 700
VZ 100
__________
34,020

Total share-wealth-units last reported which was 2Feb2022 was 33,600.
And total share-wealth-units today 34,020 , and today is 31Mar2022.

Recently much news on AT&T and its spinoff to Discovery shares. Each AT&T will get a 0.24 share of Discovery.

My only confusion in all of this is why has AT&T stuck around 23-24 dollars when in a few days you get free Discovery shares.

My guess is that big institutions are playing this right up to the day of distribution. And my opinion of big institutions as investors is "institutional stupidity entrenched".

So today, I saw an opportunity with GSK, and sold 500 at 43.87 and with the proceeds, turned right around and bought 920 shares of AT&T at 23.82.

So, well, weeks down the road I should have 33220 x 0.24 = 7972 shares of Discovery, all for free.

So, I anticipate one day when AT&T is closer to distributing those free Discovery, that the dumb stupid institutions will pile in with a rise in price of AT&T anywhere from $7 to $8. In my mind, the price of AT&T on 31March should be $31 a share, not $24 a share.

But institutions play the stock market as a short term trader, in and out, out and in, by the day, by the minute. AP plays it for a lifetime.

Low opinion AP has of stock financial institutions because of AT&T & Discovery #703 Optimal Strategy of Playing the StockMarket via VonNeumann Game Theory.

PORTFOLIO of PAF on early morning of 11Apr2022
T 33,220 AT&T
GSK 700
VZ 100
Discovery 8036
__________
42,056

Total share-wealth-units last reported which was 31Mar2022 was 34,020.
And total share-wealth-units today is 42,056, a gain of nearly 24% in wealth, and today is 11Apr2022.

Thank you AT&T, one of the best investments in my entire lifetime.

For AT&T divested itself of its media business Time Warner and spun the proceeds off to its shareholders.

I have had a low opinion of financial institutions that invest in the stock market, seeing them as somewhat "dumb" for there never was a bounce to the upside in AT&T leading up to the spin off, where you get a free share of Discovery for every 4 shares of AT&T you owned.

Why was there not a pop to the upside in AT&T stock, knowing you get free shares of Discovery. A mystery to me, and another reason for the low opinion of financial institutions in their investment style. I was sure that a pop to the upside was coming, yet it never did.

Now, my big question is, what is the cost basis of my Discovery shares should I go and sell some of those shares? Is it a 0 cost basis? I was reading a article by some financial lawyers saying that the cost basis has something to do on the day the Discovery shares are issued. And looking at that Friday close it was $24.43 while AT&T Friday close was $24.14.

So I need to know what my cost basis is going to be should I sell any Discovery.

And, I eagerly wait to see, that there was no upside pop in price of AT&T, whether there is going to be a downside slide in AT&T in the trading days ahead.

Many Thanks, AT&T