Investing General Discussion

I told you tsla going to sink everyone.

LachiusTZ said:

Lol that Tesla YouTube guy hyper change isn't really excited about making videos right now. Nothing new for a week.

He sold 10% to buy a Tesla last week, and quit his job.

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Don't let a little success go to your head. Every investor loses and you have to be ready for that.

I like the NKLA deal from their standpoint, but I don't like it from GM's standpoint. NKLA is selling a fairytale, which they are already all or nothing on. GM is taking on potential liability here. Hydrogen fuel cells don't exist, hydrogen gas tanks are incredibly dangerous if they try to cop out that way, and batteries don't have the energy density to do what NKLA claims they can. GM has the ability to make their own electric cars.

Lots of shit over the 3-day weekend hit the market. Trump and China hurt defense/aerospace which has been where some of the rotation out of tech had been going. Looks like the DOJ is serious about anti-trust with GOOG. BA now having the FAA look at all their 787s instead of just a handful. Dollar strengthening.

Bright spots are we aren't breaking down below Friday's lows (except for TSLA of course, but Standard and Poors really did fuck them up). If we can run out the week with the Friday lows as a floor we might have seen the worst in the short term. Airlines are doing well as is Disney. most of the consumer cyclical stocks are in the green as that is where the money is flowing today. The GM/NKLA thing I did not see coming.

For anyone who bought into PSTH

TheBeagle said:

Yep. Read a lot on Mp Materials this week. Will be great if Trump gets another 4 years to buttfuck China. If Biden wins, not so much. Now I just have to figure out how and when to exercise these stupid warrants I bought.

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This should help. So once they become exercisable you can basically turn them in with cash and they turn into shares. Hypothetically lets say you own 25 warrants. You exercise them. You pay $11.50 * 25 = $287.50 and get 25 shares of the stock. You only do this if the share price is above $11.50 otherwise you lose money. If the shares are trading at $15 the day you exercise you make $3.50 a share.

SPAC Capital Structure


Public Units
A SPAC floats an IPO to raise the required capital to complete an acquisition of a private company. The capital is sourced from retail and institutional investors, and 100% of the money raised in the IPO is held in a trust account. In return for the capital, investors get to own units, with each unit comprising a share of common stock and a warrant to purchase more stock at a later date.

The purchase price per unit of the securities is usually $10.00. After the IPO, the units become separable into shares of common stock and warrants, which can be traded in the public market. The purpose of the warrant is to provide investors with additional compensation for investing in the SPAC.



Founder Shares
The founders of the SPAC will purchase founder shares at the onset of the SPAC registration, and pay nominal consideration for the number of shares that results in a 20% ownership stake in the outstanding shares after the completion of the IPO. The shares are intended to compensate the management team, who are not allowed to receive any salary or commission from the company until an acquisition transaction is completed.



Warrants
The units sold to the public comprise a fraction of a warrant, which allows the investors to purchase a whole share of common stock. Depending on the bank issuing the IPO and the size of the SPAC, one warrant may be excisable for a fraction of a share (either half, one-third or two-thirds) or a full share of stock.

For example, if a price per unit in the IPO is $10, the warrant may be exercisable at $11.50 per share. The warrants become exercisable either 30 days after the De-SPAC transaction or twelve months after the SPAC IPO.

The public warrants are cash-settled, meaning that the investor must pay the full cost of the warrant in cash to receive a full share of stock. Founder warrants, on the other hand, may be net settled, meaning that they are not required to deliver cash to receive a full share of stock. Instead, they are issued shares of stock with a fair market value equal to the difference between the stock trading price and the warrant strike price.

LachiusTZ said:

Whatever it is, I have some! Lol. Only 50 shares

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The warrants are assigned in a 1:9 ratio and they round down per the info I posted. It might behoove you to buy 4 shares before the end of the day. 54 units gets you 54 shares and 6 warrants at the split. 50 units gets you 50 shares and 5 warrants. Units stop trading at the end of the day today. This is why the stock is running today. people are buying those odd shares to not get boned on the 1:9 ratio at the split.

LachiusTZ I found the actuals on PSTH. Warrants will be exercisable at $23. The trick is this is built as a Tontine. Long story short, to incentivize investors from not sell the stock instantly at merger, extra warrents are granted to those who hold them until they are called by the company.

"Each unit consists of one share of common stock and one-ninth of a redeemable warrant, exercisable at $23; common shares also have a right to receive at least two-ninths of a warrant provided that they are not redeemed in connection with a proposed business combination. At pricing, Pershing Square Tontine Holdings commands a market value of $4.0 billion, as the structure does not have the typical 20% founder shares ("sponsor promote"). This deal does not have an underwriter over-allotment.

Falstaff said:

They just announced a new bike and treadmill and reduced costs on their products this morning, so not surprised to see a 10% jump today, although its down a bit from the HOD.

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Reducing costs of products is almost never a good sign. Most likely demand is slowing as people start seeing gyms opening in the near future.

$334.65 is a 20% down day for TSLA. Over or under at the close?

I am taking the over.

China Bat Soup said:

Under

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If it hits $275 I am buying another share. My order is already in

More and more I am starting to think I might keep DAL. It had the best financials of any airline pre-Coronachan and it might be worth adding to my other industrials as a keeper.

Hateyou said:

My personal WSB submission for you all.

View attachment 300549

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Lets see what 3:51pm has to tell us.

Sanrith Descartes said:

$334.65 is a 20% down day for TSLA. Over or under at the close?

I am taking the over.

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And it is the Under by a good 1%.