Today we are here to talk about Discovery Stock. Yes, your favorite TV channel from the late 90's and early 2000's. It's still around and in stock form. Apparently, many people are unaware of this amazing stock. All over the interweb I see people say, “Is this like the Discovery channel?” and people respond, “No its not the Discovery channel”. Well I'm here to say 'Yes' it is the Discovery Channel and much more.
“Discovery is the global leader in real life entertainment, serving passionate fans around the world with content that inspires, informs and entertains. Discovery delivers over 8,000 hours of original programming each year across deeply loved content genres.
Available in 220 countries and territories and 50 languages, Discovery is a platform innovator, reaching viewers on all screens and services, from linear, free-to-air and pay–TV channels to digital products and streaming services, to social and mobile-first content and formats. Discovery’s portfolio of premium brands includes Discovery Channel, HGTV, Food Network, TLC, Investigation Discovery, Travel Channel, Turbo/Velocity, Animal Planet, and Science Channel, as well as OWN: Oprah Winfrey Network in the U.S., Discovery Kids in Latin America, and Eurosport, the leading provider of locally relevant, premium sports and Home of the Olympic Games across Europe.”
Discovery is a beast in itself! But why should reddit investors be interested in some stupid stock that's symbol is DICKS spelt wrong, Disck? Because of the upcoming merger with Warner Brothers bro! Do you like batman?
The up coming merge is a sleeping giant!! Expected synergies savings in the 4 billion range. Currently Discovery is spending a lot on advertising so their current Price-Earnings ratio 17.62 could be perceived as a little high but really its not. Netflix has a PE of 34. Warner Brothers is currently held by ATT and has a PE ratio of 8.41. If you are unaware, ATT is spinning off Warner Bro in a tax free special dividend to its shareholders and merging with Discovery. Yes its as cool as it sounds. The new spin off company is going to be called Warner Bro Discovery, ticker symbol WBD. The day this merge happens a lot of magical unknowns will happen but the current mainstream price target of Discovery is 42$. We are at a huge discount of that at 26.60$. Right there is reason to acquire some shares. But with the addition of Warner Bro to there inventory at the cheap rate of 8.41 PE this thing is going to grow wings.
Every company has its ups and downs. Warner Bro just had kind of a down period. Their hands were tied during the acquisition period of AT&T because the government prolonged the transition for 20 months!!!! Over a year that Warner Bro couldn't make any changes to anything. Now Warner Bro just released its first big picture of 2022. The Batman with a production budget of $200,000,000. The domestic box office has been $300,090,872, the international box office has been $298,000,000 for a total worldwide box office income of $598,090,872. This leads to a total profit so far of 398$ Million in just 3 weeks…. Just the tip of the iceberg. They have 8+ major movies already in the release schedule each expected to gain traction one after another. HBO And HBO Max reach 46.8M Domestic subscribers, with an average revenue of $11.15 which helped AT&T Beats Q4 Estimates. HBO has been performing better than expected.
This is already too long so ill wrap this up. I really want people and apes alike to check out Discovery Ticker Disca and Disck. Today there are only 6,769 watchers on stocktwits compared to 235,278 watchers for GME. We still are early to the party! Discovery could really gain traction before the merge and have huge rewards for the future. We just need to get the word out so people check it out.
Lets party. Buy some now. Buy some later. Add it to your watch lists. Do it how ever you want to do it. We are still nice and early to the party. Alot of big players are invited. This could be one of the biggest gains of the year as this thing plays out.
How am I invested in to Discovery and this up coming merger so far?
I think this thing is going to be huge so I'm aggressive with options.
Disck
Call debit spreads
Buy the 30$ call sell the 40$ call ex Jan 2023 (insane spreads here, huge profit)
Buy the 32$ call sell the 40$ call ex Jan 2023
Disca
Call debit spreads
Buy the 25$ call sell the 30$ call ex 6/17/22
Buy the 32.5$ call sell the 40$ call ex Jan 2023
AT&T
I own ATT shares for this special dividend. For every 4 AT&T shares you own you will get 1 new Warner Bro Discover shares. AT&T is trading at such a discount I think there is value holding AT&T stock to get the cheap new shares of WBD.
Against popular opinion i am also holding AT&T options with expiration dates well after the split. These options will also split giving you the option to purchase AT&T shares AND Warner Bro Discover Shares. These ATT options are very cheap compared to the current Discovery options.
23$ calls ex Jan 2023
25$ calls ex Jan 2023
27$ calls ex Jan 2023
30$ calls ex Jan 2023
Call debit spread buy the 25$ call sell the 32$ ex Jan 2023
25$ calls ex Jan 2024
Call debit spread buy the 25$ call sell the 35$ call ex Jan 2024
Currently about 10K in these all together. My income varies and picks up in spring at which time I will be adding shares of everything!
Key statistics
Current Market cap 13.53B Price-Earnings ratio 17.62
Expected Market cap after merge 120 Billion
Analyst ratings
Fair value
$42.00
62%
of 21 ratings
Buy 38.1% Hold 61.9% Sell 0%
Bulls say
“Discovery is positioned to benefit from increased pay-television penetration globally due to its investments more than two decades ago.
Discovery’s three primary networks have wide distribution in the U.S. and worldwide, with each channel reaching more than 87 million U.S. cable households and more than 260 million international households.
Discovery owns the rights to the majority of programming broadcast on its channels, creating a large library that can generate additional revenue streams.”
Morningstar
Published on March 22, 2022
Mods hate Discovery stock, I would expect them to delete this for some BS reason. Im trying to get attention brought to Discovery stock and the up coming merger with Warner Bro Discovery. Do your own research. You'll see its amazing.
Also looking for comments of how stupid I am for believing in these companies.
Lets hear your ideas on Discovery, Disca, Disck and Discb as well as At&t. Thanks and thank you god, damn I love these stocks.
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