With the S&P 500 $SPX500 at all time high with US Stocks still very expensive, it seems that an opportunity has presented itself in China with the recent regulations on tech stocks.
The first stock I'm buying in September 2021 is Qudian $QD . Qudian is a Chinese fintech company. The stock price is down 95% from all time high after the company had to lower its customer base in order to reduce its delinquency rate. However, Qudian maintains a very good balance sheet and is massively undervalued.
The second stock I'm buying in September 2021 is DouYu $DOYU , the Twitch of China. The stock is crashing after the failed merger with Huya and increased regulations. But if we're thinking about the long-term, then this is a buying opportunity.
The third stock I'm buying in September 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 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