VZ: For WEB Coat tail's

VZ price crashed on Friday. Opened at $52.5 and closed at $50.8. Now the interesting part is The price crash happened on the last hour of trading. I couldn’t find any news. Remember the friday is a triple witching day, so there is that possibility of something gone wrong with the options/ derivatives, or someone got out in hurry. May be WEB got out.

If not, it is a good price to enter and expect the shares to at least bounce back to Friday opening.

" VZ price crashed on Friday. Opened at $52.5 and closed at $50.8"

this qualifies as a “crash”?

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VZ price crashed on Friday. Opened at $52.5 and closed at $50.8. Now the interesting part is The price crash happened on the last hour of trading. I couldn’t find any news. Remember the friday is a triple witching day, so there is that possibility of something gone wrong with the options/ derivatives, or someone got out in hurry. May be WEB got out.

If not, it is a good price to enter and expect the shares to at least bounce back to Friday opening.

I do not disagree with your conclusion, but something strange has been going on for the last coupla weeks.

On Tuesday two weeks ago, on open, VZ dropped from about $55.25 to $53.25 by the end of the trading day. It never really recovered.

Then this past Wednesday it dropped from $53.00 to $52.00 by 11AM, struggled up to $52.75 after lunch and finished the day about $52.25.

So the drop on this Friday was a big deal, but it is by no means unique, not even in the last two weeks.

https://bigcharts.marketwatch.com/advchart/frames/frames.asp…

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Do a 5 minute chart then you will see the crash. Separately, VZ doesn’t move much. Do a 10 year chart, you will see it is in $5 channel. For ex Apri 2013 to Sep 2018, it moved between $45 to $55, with a strong anchor around $50.

Separately, they have steady gross, operating margin’s (over a decade), the dividend yield is 5% (of course a 10% price move can wipe 2 years dividends). I am expecting their heavy investment cycle to moderate in a year or two, allowing some buyback.

Of course I own this with 3% allocation.

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Take a look at the price action on Jan 26, 27, 28th and then on Feb 24th (of course overall market hit low) and then march 8th, and yesterday (18th), you know what is uncommon about 18th? Volume and the price action at the close.

Separately, YTD $50.81 is low and like clockwork buyers emerged at $50.8 (which also coincides 5%+ dividend yield).

None of this means anything. It could be I am just reading something I want to read. However, I will open a trading position, mostly options, with a goal of getting out $52.5.

May be WEB got out.

Could it be that Buffett saw its stake in Verizon as a source of funds for its recent purchases of Occidental? Buffett had this to say in the 2020 Annual Report (bolding mine):

“Our fourth bucket consists of individual shareholders who operate in a manner similar to the active institutional managers I’ve just described. These owners, understandably, think of their Berkshire shares as a possible source of funds when they see another investment that excites them. We have no quarrel with that attitude, which is similar to the way we look at some of the equities we own at Berkshire.

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I don’t think OXY investment has anything to do with VZ. They are two different decisions. It is not like WEB is having trouble with cash…

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