Exchanged AT&T (T) for Time Warner (TWX) and Dumped Hilton Worldwide (HLT)

posted Sep 1, 2017, 4:34 PM by Intelligent Investor   [ updated Sep 1, 2017, 4:36 PM ]
I exchanged AT&T (T) for Time Warner (TWX). Their merger currently gives TWX a 6% premium. AT&T is offering $107/share for TWX. Time Warner is currently priced at $101/share.

Time Warner's (TWX) Current Price = $101/share
AT&T (T) Offer = $107/share

$107/$101 = 1.06
(1.06 - 1) x 100% = 6%

I like AT&T. I think AT&T will be around forever. But we could sure use a 6% gain. We sold all of our AT&T holdings and bought Time Warner (TWX).

Hilton Worldwide's (HLT) Forward P/E Ratio is currently at 35 which is expensive. We see other things we like better.

HLT Forward P/E Ratio = 35

Disclosure: We own shares in Time Warner (TWX) and no longer own shares in Hilton Worldwide (HLT)
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