S2 EP14: Biden's Big Bold Progressive Infrastructure Package, $VIAC $DISCA, and Corporate Tax Increase
Episode description
In today's episode of compounding lifestyle, Biden's Big Bold Progressive Infrastructure Package, $VIAC / $DISCA, and Corporate Tax increase
Biden will lay out his infrastructure plan in an afternoon speech in Pittsburgh. It is the first step in a two-part agenda to overhaul American capitalism, fight climate change and attempt to improve the productivity of the economy.
Together, those two proposals could cost as much as $4 trillion between spending increases and tax incentives. The second phase of the proposals is expected to include tax increases on high-earning individuals.
The spending in the first phase of Mr. Biden’s plan includes a wide range of investments in physical infrastructure, including highways, mass transit and electric vehicle charging systems, and upgrades to water pipes, the electric grid, and veterans’ hospitals. It also includes a big increase in federal research and development spending and efforts to provide home-based care to older and disabled Americans.
The scale of the infrastructure program — one of the most ambitious attempts in generations to shore up the nation’s aging roads, bridges, rail lines, and utilities — is so big that it will require 15 years of higher taxes on corporations to pay for eight years of spending.
Biden’s proposals include raising the corporate tax rate to 28 percent from 21 percent and efforts to force multinational corporations to pay significantly more in tax to the United States on profits they earn and book overseas. The corporate tax rate had been cut under President Donald J. Trump from 35 percent to 21 percent.
Tuesday’s rally follows a wild ride that has taken shares of ViacomCBS $VIAC and Discovery $DISCA to record highs of $101.97 and $78.14, respectively.
ViacomCBS and Discovery are both now trading below their respective median price targets of $55 and $46.
Most of the sell-off happened in the last few days, which is rumored to be due to a hedge-fund liquidizing its positions to meet a margin requirement. Regardless of the reason, this sell-off can be a great buying opportunity for investors.
These are three reasons to watch Discovery and CBS after this sell-off.
- Both these companies are being very aggressive in the subscription-based tv model.
- The sell-off was not due to any changes in the companies fundamentals.
- They are profitable with positive cash flow from operations, and their current P/E ratios are looking very attractive when compared to some of their peers.
$ARKX $XOM $TSLA $AAL $BNGO $MARA $O $CRWD $FB $AAPL $FCEL $MGM $GOOGL $EZGO $SHOP $MTCH $DIS $PDD $ $TWTR $MVIS $PLTR $BFLY $ENZC $GM $ABNB $BUZZ $PTON $TDOC $DDD $U$HOFV $VIAC $DISCA
check for Coin Base IPO share prices are $200 estimated release date is late February or early April 2021
Control the Cash balance today and position yourself accordingly. Let's GO!!!!!
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