$VIAC to $DISCK switch
I recently switched from $VIAC to $DISCK.
I have been long $VIAC from late Q1. After I bought, it fell further and traded at valuation of 2.5 PE at the bottom. It had recovered nicely from there and turned out to be very profitable trade for me.
Right now its PE is same as $DISCK and I recently switched from $VIAC to $DISCK
The rationale for my switch is at similar valuation, I find $DISCK is a simpler play.
$VIAC has many value drivers which look uncertain in an extended 2nd wave scenario:
Sales of noncore assets like their BlackRock office building and Publishing business looks shaky
Their theatrical business looks uncertain as well for 2020. They have some large releases including Top Gun Maverick in cans
NFL restart is a big risk as well
$DISCK doesn’t have any of these issues. It’s a much simpler value trade on recovery of ads. At similar valuation I will take $DISCK
To make it better, $DISCK is also in a position to buyback at these valuations. They have bought about $500mio of stock in Q1.