🚂 The first stock I'm buying in July 2021 is 𝙖𝙣 𝙖𝙧𝙗𝙞𝙩𝙧𝙖𝙜𝙚 𝙤𝙥𝙥𝙤𝙧𝙩𝙪𝙣𝙞𝙩𝙮.. With the S&P 500 $SPX500 at all time high and holding cash not being a good idea, arbitrage is a good alternative. The first stock I'm buying in July 2021 is Kansas City Southern $KSU which is a going to be acquired by Canadian National Railroads with a current spread of about 18% on the deal.
There are many catalysts on railroads right now such as higher inflation, a booming economy, infrastructure spending, and environmental issues. Kansas City Southern is going to be acquired in stock and transaction. It is a good deal for both companies as the new company will own a network spanning from Canada, through the US to Mexico.
📺 The second stock I'm buying in August 2021 is Discovery $DISCA . It is a special situation stock as it will merge with AT&T's WarnerMedia $T .
The deal is a 𝙍𝙚𝙫𝙚𝙧𝙨𝙚 𝙈𝙤𝙧𝙧𝙞𝙨 𝙏𝙧𝙪𝙨𝙩 𝙏𝙧𝙖𝙣𝙨𝙖𝙘𝙩𝙞𝙤𝙣, in other words, AT&T will spinoff WarnerMedia which will then merge with Discovery. This is done to avoid taxes. 100% of Discovery shares will be converted into shares of the new company with Discovery shareholders owning 29% of it. $43 Billion of the debt of AT&T will be assumed by the new company. David Zaslav, CEO of Discovery, will be the CEO of the new company.
WarnerMedia owns Warner Bros Studios, DC, CNN, HBO,... while Discovery owns mostly factual TV networks such as Discovery Channel and the Food Network. This deal is going to create a Media giant hoping to compete with Netflix $NFLX , Disney and ViacomCBS.
🎮 The third stock I'm buying in August of 2021 is DouYu $DOYU . The stock is crashing after the failed merger with Huya. Chinese stocks are currently having a bad time. But if we're thinking about the long-term, then this is a buying opportunity.