SHEN – Maybe not the free lunch that it looks like?

I am not a financial advisor, I do not have a crystal ball, I am a random ape who spent more time writing this up than researching the facts. There seems to be a lot of misinformation (likely for pump purposes) or lazy research out there.

**If you’re just riding the pump or are doing a covered call play, god speed. You may not care about this post.**

For anyone actually planning on holding through August 3, 2021, especially those trading on RH, please consider the following:

Shen sold their telecommunication business to T-Mobile (T) for $1.94 Billion (I’ll refer to this as TA)

$936.6 million to shareholders via special divided of $18.75

$684 is going to be used to pay down debt

The rest towards taxes I believe

After the sale of the telecommunication business, Shen will shift its focus to it’s broadband and tower business. I’ll refer to Shen post-sale of their telecom business as ShenP.

PE and Earnings Moving Forward

The EPS for **TA** for 2020 was $2.48 and $0.97 last quarter (this is very solid)

The EPS for **ShenP** was $0.05 in 2020 and a solid $0.06 last quarter, 2022 forecasted EPS of $0.29

The revenues for **ShenP** were $220.78M and are forecasted to grow 10.6% for 2021 ($244.2M) and 2022 ($270M)

Google and yahoo give you a PE of 18.59 (I’ve seen this same number in posts), but **ShenP’s** PE for last Q’s earning is closer to 254 and the forecast for 2022 is a PE of 210. These are based on $61 per share. Let’s say you’re still comfortable dealing with share price of $42.25 (61-18.75) because you get that juicy dividend, the PE is still very high at 176.

I’ve also seen a lot of information and spamming of don’t worry about your shares there will be a buyback after August 3, 2021. The buyback is about $20 million dollars. This is not worth talking about. Insignificant. Just being used as pump fodder. (Haven’t see anything else related to a buyback)

Insiders didn’t hold many shares but they have been dumping this thing and now hold less that 1% of shares, sales as recent as June 10, 2021 for $50.43.

To those of you without premarket capabilities, you are far more likely to get stuck hold bags during the eventual sell off. So what’s a company with $220.78M revenue and a forward guided EPS of $0.29 worth to you? If you buy it at $61 and are stuck holding the bag at $42.25, the special dividend premium was eaten up by your loss, you’re saying that company is worth $2.1 Billion dollars. **You’re paying $160M more than T-Mobile paid it’s acquisition but the company you own has 16x less earnings.**

For transparency, I hold puts, many many puts. I am not trying to create FUD or telling you to sell, I just want people to know what they are buying, I decided to use forward guidance and last Q which was solid for **ShenP** instead of 2020 numbers to try to be as fair as possible. If any of this looks inaccurate, please let me know.

What do you think?

10 Points
Upvote Downvote

Leave a Reply

Your email address will not be published. Required fields are marked *

GIPHY App Key not set. Please check settings


  1. Thought I was a fucking genius last week, bought $50 puts and 15k of shares thinking id collect on that sweet dividend and then when it fell to around 35 id collect again. Surprisingly, I woke up to a $4 share gain because of the people even more stupid then I on this board and made a $1,000. Thanks idiots.

  2. I have got some SHEN at 57,50 and now i am waiting to get profit in short term.




    PS: do not be to greedy and get the profit even if it is small!!

  3. Math:

    Remaining co will have 2022 EPS ~$1.2

    Share price of 55 now less dividend of 18.75= 36.25 afterwards.

    36.25 share price divided by 1.2 per share earnings = 30.0x PE.

    Arguably, earnings would go up because they have less overhead required now.

    Unsure but margins on remain co business is potentially higher.


  4. You only have to hold through july 13th to receive the dividend and of course it will be pumped and there probably will be a huge sell off after. My plan is to buy a few hundred while also probably buying some october/September puts.

Finding a viable solution to fight scammers in freelance. Constructive Feedback is encouraged.