Stock Picks – August 13, 2018

Stock pick

I believe one of the best deals currently is AT&T (NYSE:T 30.52 +0.03 +0.10%). When something thinks of AT&T they typically think of a telecommunication company, which sells cell phone service, telephone lines, fiber connections, perhaps satellite TV (DirecTV), cable TV, and over the top TV (DirecTV Now and Watch TV). In other words AT&T is a content connector. They connect you to content.

And this assessment of AT&;T would be right, if this was still May. In June, AT&T morphed from being a content connector into being a content connector AND a content provider with the purchase of Time Warner (known post merger as Warner Media). AT&T now owns power house brands such as HBO, Cinemax, Turner Broadcasting (TBS, TNT, CNN, Turner Classic Movies, Cartoon Network, Bloomberg, and TruTV) , Warner Brothers (one of the big 6 film studios), DC Entertainment/ DC Comics, and much more. They operate NBA.com and NBA TV, NCAA.com, PGATour.com, PGA.com, and much more.

Check out this list of assets now owned and controlled by AT&T.

This merger now makes AT&T the 5th largest company in the United States, and one of the largest in the world. However, Wall Street, while knowing about the merger doesn’t seem to understand what AT&T just did and the moat they just created. For a quick exercise look up T on the stock brokerage of your choice and read the company profile. There is basically no mention of the WarnerMedia subsidiary. Basically Wall Street is comparing them to Verizon (VZ 56.63 +0.58 +1.03%), Centurylink (CTL 20.97 +0.39 +1.90%), etc, when really they are a combination of Verizon and Disney (DIS 115.18 -0.92 -0.79%).

AT&T closed slightly down on Friday to $32.26 a share. They are down -15.6% over the last 52-weeks, and nearly at their 52-week low. They are slightly above their 90-day moving average ($31.87) and below their 200-day moving average ($34.11).

AT&T pays an amazing dividend of $2 per year (current yield 6.17%), which they have continuously paying (and increasing) for the past 34-years!
This is the second time I am choosing T as a MikesStockPick. I previously purchased shares for $31.07 in July and for $31.965 in August.

Back to School Family Home Evening

Tomorrow Mikey starts 7th grade, Josh 5th, and Hannah 3rd. In one week Lizzy will start Kindergarten. Amanda and I decided to hold a short family home evening. Josh read 1st Samuel 16:7. We talked about how the Prophet Samuel was looking for the next King and how he learned that’s the Lord doesn’t care about how we look on the outside but the inside. We likened this to how there will be all sorts of different kids at school and we should not judge them based on how they look or what they wear but instead try to see them how God sees them and love them as God loves them. We then had Hannah read Matthew 11:28-30. We discussed how Christ took upon Him all of our heartache and pain, our sorrow and our stress, as well as our sins during the atonement and that we can put all of this on Him and accept in return His yoke, His burden, which is to love each other and follow His commandments.

We finished Family Home Evening with each kid getting a Father’s Blessing.

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