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    Home Unlabelled Tesla board plans to meet with advisors next week to ramp up going-private talks, likely to ask Musk to recuse himself from process Investing

    Tesla board plans to meet with advisors next week to ramp up going-private talks, likely to ask Musk to recuse himself from process Investing

    August 10, 2018

    Tesla board plans to meet with advisors next week to ramp up going-private talks, likely to ask Musk to recuse himself from process Investing

    Tesla board plans to meet with advisors next week to ramp up going-private talks, likely to ask Musk to recuse himself from process

    Posted: 09 Aug 2018 02:25 PM PDT

    Is Musk getting the Shorts to pay for TSLA going private?

    Posted: 09 Aug 2018 03:15 PM PDT

    I think we may be about to witness the greatest financial judo move in recorded history: Musk will make Tesla private and bury the Shorts, using their own money. It will not cost him a dime. Detailed explanation below:

    Why is this even conceivable? Because Tesla is the most shorted stock ever. There are more shorts to cover than shareholders who would prefer to cash-out at $420.

    Some TSLA data:

    • Shares outstanding: 171M

    • Float: 127M shares, of which:

      • Musk: 34M shares

      • Institutionals: 81M shares.

        Almost all of them (above 70M shares) are not prohibited from holding shares in a private company.

      • Other (incl retail investors): 12M shares.

        Note there aren't enough of those to significantly change the picture.

    • Short interest: 35M shares

    Now let's assume:

    • This is real. Elon actually has someone willing to buy out any shareholder who doesn't want to, or cannot, go private, at $420.
    • Most institutional investors will chose to remain with the privatized Tesla and not exit at $420.
    • The board approves, and it goes to a shareholder vote, with a guaranteed 2/3rd majority of Musk and almost all the top institutionals.

    What will happen?

    • You have 35M shorts to cover. Less than 35M shares to do that. Nobody will sell for less than the 420 they know they'll get anyway. Result: Volkswagen-style short squeeze.
    • Anybody who wants out can sell during the short squeeze.
    • If the squeeze goes high enough, some shareholders may change their mind and sell anyway. Probably all the shorts will be covered, but significantly north of 420.
    • The only shareholders remaining after the squeeze are those who want to take their stocks into the private stage.

    Result: There are no shareholders left that need to be bought out at $420. The short squeeze took care of those. Tesla goes private. Cost to Musk: ZERO.

    A classic judo move - use your opponent's momentum against them.

    I realize the above scenario sounds insane. But the logic is sound. Even if more institutionals want out, the short squeeze will take care of most of them, and the actual cost of privatization will be a small fraction of TSLA's valuation.

    If you think this is BS, please explain why.

    submitted by /u/shaim2
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    Chinese leadership is facing a rare backlash for its handling of the US trade dispute

    Posted: 09 Aug 2018 06:30 AM PDT

    Bloomberg: "SEC enforcement attorneys in the San Francisco office were already gathering general information about Tesla’s public pronouncements on manufacturing goals and sales targets"

    Posted: 09 Aug 2018 11:45 AM PDT

    Is it possible to just not have a U.S bear market for the next ~5-10 years

    Posted: 09 Aug 2018 12:48 PM PDT

    With all of the innovation surrounding our STEM field and how advanced quantitative finance has gotten could we actually see another 5-10 years of this bull market? I mean unless WW3 happens, or Morgan Stanley collapses whats fucking stopping us?? I know this post is super ignorant, but I want other people's opinions on this. Are we really living in a bubble, or are we actually creating the future every day?

    submitted by /u/5n0wy
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    CRSP (CRISPR Therapeutics) a buy?

    Posted: 09 Aug 2018 12:58 PM PDT

    What are your thoughts on CRSP (CRISPR Therapeutics) and Crispr related stocks? The technology behind this seems groundbreaking, and if proven to be practical, will be as impactful as the invention of the modern computer. The recent dip, which appears to be catalyzed by nothing more than a poorly done study, seems like a perfect buying opportunity. Is CRSP good or no?

    submitted by /u/SignificantLove
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    Did anyone successfully dump all of there investments before the 2008 financial crisis? If so, how did you know and when did you invest again?

    Posted: 09 Aug 2018 08:58 PM PDT

    I bought FNMA & FMCC during the recession and haven’t touched it since.

    Posted: 09 Aug 2018 08:28 PM PDT

    So I bought into both common stocks way back during the recession when they were at $0.30 and $0.90 per share, at least as far as I can remember, in a Scottrade account. I recently transferred everything to my Robinhood account and noticed they are both flatlined for the last week. I'm having trouble finding information on what's going on and I'm trying to figure out if I should just take the profit that I've made or hold out for the long term. Did I miss out on selling at the high?

    submitted by /u/purenomadicsoul
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    Investing in the Philippines

    Posted: 09 Aug 2018 07:22 PM PDT

    I'm from the US and use Robinhood to trade US equities.

    I'm currently in the Philippines and some friends were interested in getting into stocks but Robinhood is US only. Does anyone have experience trading as a citizen of the Philippines? Or know of a guide I could refer them to?

    I tried using the search bar but didn't come across the info I was looking for.

    Thanks!

    submitted by /u/Moongains
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    What am I not seeing in Aflac

    Posted: 09 Aug 2018 05:59 PM PDT

    I've been thinking of pulling the trigger for about 2 years, but i can't do it because it looks like a trap. What are the downsides that I can't see? It has a lovely p/e, forward pe, dividend, dividend growth history, good looking future earnings growth, great payout ratio, great brand, and good buyback metrics.

    submitted by /u/puffnstuff
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    Does Musk's audacious 'Funding Secured' tweet signal a market top?

    Posted: 10 Aug 2018 04:38 AM PDT

    Trump administration and EU build momentum toward hashing out a trade deal

    Posted: 09 Aug 2018 11:38 AM PDT

    Why did $DBX drop so much after hours after having a strong earnings report?

    Posted: 09 Aug 2018 02:40 PM PDT

    Is it really all because the COO is stepping down? Also how do you guys feel about them long term?

    submitted by /u/GopherFawkes
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    when do Daily Technical analysis change ?

    Posted: 10 Aug 2018 01:47 AM PDT

    hello I'm a noob day trader and I use investing.com to check on strong Forex signals and I prefer daily ones however I noticed they dont change the next day i want to know how they work and how do I catch on fresh daily analysis alerts on investing.com

    submitted by /u/Khalil47
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    Which SEC filling contains the guidance figures?

    Posted: 09 Aug 2018 11:06 PM PDT

    What is your stock picking strategy? And what have your returns been over the long-term?

    Posted: 09 Aug 2018 10:38 PM PDT

    With the RiteAid deal being cancelled what is the likelyhood of Amazon making a play for them?

    Posted: 09 Aug 2018 06:20 AM PDT

    I would think this now is the easiest way for Amazon to get in to the retail pharmacy business. Thoughts.

    submitted by /u/pch14
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    Question about dividends

    Posted: 09 Aug 2018 10:00 PM PDT

    Hey guys , Im looking to learn more about dividend investing. Im 25 years old I have a 401k, a IRA my goal is to retire at 55 or earlier if Homedepot stock blows up. I'm sitting on 11k just in my checking . And guidance would be appreciated.

    submitted by /u/adraxium
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    Article - The scariest chart in the stock market - Price to median sales 2x year 2000 levels

    Posted: 09 Aug 2018 05:24 AM PDT

    I know people have been have been talking about the heated market, longest bull run, overvaluation etc for 2-3 years. If you headed that advice 2 years ago today you missed out on 31% of returns.

    https://www.marketwatch.com/story/behold-the-scariest-chart-for-the-stock-market-2018-08-08

    I know the short answer is no one knows when we will top out.

    A lot of things have changed from 2000 and from 5 years ago, I do think way too much value is being simply placed on subscriber growth - to a point where companies have to perfectly monetize things to reach their valuations. Growth + growth in monetization offsets that some.

    I'm currently sitting in 65% equities, 5% bonds, 20% RE, 10% cash. What are things I can do to have some downside protection? I'm younger (early 30's). How are you guys positioning yourselves?

    edit: I'm not talking about shorting the market. I'm going to move some over to a small local high yield instrument at ~3%, should I put more in bonds? I'm not trying to short the market, could buy some puts out there - I don't know much about options trading beyond the very basic levels.

    submitted by /u/akmalhot
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    How to save taxes on large profits made from stocks?

    Posted: 09 Aug 2018 08:42 PM PDT

    I made $300,000 in profit from stocks and will be paying a lot of taxes on top the taxes I pay for my 9-5 job. Is there a better way to buy stocks to save taxes like opening my own wealth management company and purchasing stocks through it?

    submitted by /u/greyghost1991
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    Trust Busting (Amazon, Apple, Google)

    Posted: 09 Aug 2018 04:39 PM PDT

    Hey y'all,

    I wanted to get a discussion going regarding some of the tech titans and the implication of government involvement. As we see companies dominate both vertically and horizontally, they begin to become both too big to fail and crush much incoming competition.

    This generates an investment risk for me that I haven't seen discussed very much- the implications of government intervention. It seems very possible that at some point the government would opt to intervene and limit to some extent these tech behemoths.

    I would love to have a discussion about both the likelihood of this happening, and, if it were to happen, the potential routes for regulation the government would choose.

    Thanks in advance to anyone who contributes to this conversation, I think it could be very valuable from both a macro economics and a valuation perspective.

    submitted by /u/irojo5
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    Trump's USPS Task Force looms over AMZN tomorrow

    Posted: 09 Aug 2018 09:02 AM PDT

    The USPS has requested to renegotiate one of its key arrangements with Stamps.com https://www.cnbc.com/2018/08/09/stampscom-plunges-after-disclosing-that-its-deal-with-usps-could-chan.html

    A similar arrangement between the USPS and AMZN, if renegotiated, could result in between $1B and $1.8B in incremental shipping costs for AMZN, with USPS fees accounting for 40-50% of shipping cost in the US, a 20% increase would result in $1.8 B in incremental shipping costs

    Tomorrow, Trump's USPS Task Force will make its official report to the president.

    Today the USPS released its financial results; it's 3q loss increased to $1.489 B from $1.335 B in 2q http://about.usps.com/who-we-are/financials/financial-conditions-results-reports/fy2018-q3.pdf

    Trump hates Amazon and has personally been pushing postmaster general Megan Brennan to double the rate USPS charges AMZN for package delivery. A doubling would result in more than $3 B in incremental shipping costs

    Why aren't more people talking about this?

    submitted by /u/iowaaah
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