Am I understanding this correctly: Musk buys Twitter for 54.20 a share. Once the deal is official then he will take it private and you will get 54.20 for each share you own. So if I buy it for 49 bucks I’ll make 5 bucks a share. If that’s correct then it’s a no brainer to back up the truck and buy. Can someone confirm or deny this please.
I haven't really looked into the details of the deal, but I don't think its a done deal. Sure there is an agreement, but it's not done till it's done. So thats the risk, could he still walk away? Could financing fall through? Could the gov't step in and stop the deal?
One thing that I have learned about the market, is that if it's a no brainer, then I'm not seeing something the market sees. And the market is usually smarter than me.
Thanos was the hero
I figured there is something I’m missing. I’ve been reading as much as I can find on the deal and just don’t see any reason why it’s not at 54.00 right now. I guess the deal might not go thru but Twitter accepted the offer and Musk has the investors lined up. So I guess it’s now up to the SEC and I’m trying to find a reason why it would not get approved. I did find this article that explained what will happen:Originally Posted by boneil
https://www.bloomberg.com/news/artic...aders-lose-out
Price is set to allow for risk ... $54 acquisition, $49 currently = hypothetical value of $39 if the deal doesn't go through, 1:2 odds.
So if it goes thru then you stock is worth 54.20 a share. So basically 5 dollar profit per share at current rate. Seems like great odds.
Jump on it ... if it goes thru, you'll win, if you can sell before it drops.So if it goes thru then you stock is worth 54.20 a share. So basically 5 dollar profit per share at current rate. Seems like great odds.
Two ifs, one buy, that's a bargain at any price. Best wishes player.
The risk reward is actually better for a short. $54 vs sub$30
The lower TSLA stock goes, the more shares he has to pledge as backing for the cash to buy TWTR. At some point, TSLA could go low enough that the banks say no deal, or he risks a margin call and is forced to sell. At some price, Musk will think about the billion dollar termination fee, vs the risk of humiliation and being forced to sell TSLA shares.
Thanos was the hero
Hindenburg Research is short TWTR. Risky since Musk has a history with hating and burning shorts. But they make a compelling argument for why the purchase should be priced much lower. I wouldn't touch this stock with someone else's money.
Thanos was the hero
A deal isn't done till it's done. Musk must think TWTR lied about the number of bot and scam accounts. Any active TWTR user would say they doubted the <5% bot accounts
Thanos was the hero
Down 20% in pre-trading and it will very likely be more before the market opens.
Currently, we've been seeing early birds and algorithms, the US is now waking up.
Musk may, or may not, purchase the company. IMO, it's trash either way now.
Reply With Quote