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Stock-Age: Stocks, Options and Dividends oh my!

GHG

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Mainly some SPACs and VGAC.

Just ignore them then provided you were happy with the companies at the time of buying them. Realistically most SPAC's will take 3-5 years before you start to see significant gains.

Today may finally be the day I sell Apple. Come on ya bastards hit 131

I'm waiting for 135 then I'm out. The measly dividend isn't enough to keep me around and I have more than enough exposure via my ETF's.
 
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Nikana

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Just ignore them then provided you were happy with the companies at the time of buying them. Realistically most SPAC's will take 3-5 years before you start to see significant gains.



I'm waiting for 135 then I'm out. The measly dividend isn't enough to keep me around and I have more than enough exposure via my ETF's.
The issue is the 2 SPACs I jumped into got shorted like days after and dropped em about 40 percent and continuing to drop. Its just dragging down my whole portfolio. I expect them to rebound
 
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ManofOne

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I got in at 129 but it’s so damn stagnant I have to get out. That money would have doubled for mr in any of my ETFs 😡

Appl P.E ratio is around 33-34 when its 10 year historical is 15. Something extraordinary would have to occur for the stock to move to insane levels.

 
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TrainedRage

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Appl P.E ratio is around 33-34 when its 10 year historical is 15. Something extraordinary would have to occur for the stock to move to insane levels.

I got into it because I figured it would be a long term safe investment but what’s the point if it never grows... Thought maybe the iCar or whatever would boost it but there is like zero interest.
 

ManofOne

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I got into it because I figured it would be a long term safe investment but what’s the point if it never grows... Thought maybe the iCar or whatever would boost it but there is like zero interest.

It will grow however its weight on the stock market is relatively high. For it to push higher would need a general increase in the overall stock market plus stronger outlook.

It also needs newer business lines.
 
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ManofOne

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Prepare Yourself For A Rough Earnings Season. I Would Take Profits.


New record for U.S. trade deficit

, which widened to $71.1 billion in Feb vs. $67.8 billion in January … exports fell to $187.3 billion while imports fell to $258.3 billion



32.0% of Companies Cut Guidance.

large & small U.S. companies, 32% have reduced profit estimates, most since May 2020 … reasons cited range from short-term headwinds (colder weather) to shortage of chips, to rising commodity prices eating into costs

 
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GHG

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The issue is the 2 SPACs I jumped into got shorted like days after and dropped em about 40 percent and continuing to drop. Its just dragging down my whole portfolio. I expect them to rebound

Yeh it's frustrating but not much we can do but hang in there unfortunately. I'm in PSFE and things have not gone as I would have expected in the last week after the ticker changeover happened but whatever, I'm in the company for the long run. No point in selling out for a loss at such an early stage.
 

Nikana

Go Go Neo Rangers!
Jan 26, 2016
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Yeh it's frustrating but not much we can do but hang in there unfortunately. I'm in PSFE and things have not gone as I would have expected in the last week after the ticker changeover happened but whatever, I'm in the company for the long run. No point in selling out for a loss at such an early stage.
Thats my feeling as well. I went overweight in one but I plan on adding next paycheck into the market so itll balance.
 

ManofOne

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Man I fucking love it when I am right. - Looks like wage inflation boys. Prepare yourself


So after reading this thread (see below) I want to share an impending crisis emerging as the result of Democrat policies.



This morning the U.S job market with a surprising increase in unemployment benefits. Where Initial jobless claims up to 744k vs. 680k est. & 728k in prior week; continuing claims at 3.73M vs. 3.64M est. & 3.75M in prior week.



However, that not the worst part. Job Openings have hit a record high where the recent JOLTS report suggest "Feb job openings much stronger than expected; JOLTS up to 7.367M vs. 6.9M est. & 7.099M in prior month (rev up); pace of hiring increased to 4% vs. 3.8% prior; layoffs/discharges unchanged; quit rate at 2.3%; separations at 3.8%"




Read More Here

 
Jan 2, 2011
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Appl P.E ratio is around 33-34 when its 10 year historical is 15. Something extraordinary would have to occur for the stock to move to insane levels.

Do you think MSFT, despite the higher ratio, stands more potential for growth considering they have their hands in so many different things? Or do you think they'll trend similarly to AAPL?
 

ManofOne

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Do you think MSFT, despite the higher ratio, stands more potential for growth considering they have their hands in so many different things? Or do you think they'll trend similarly to AAPL?

From the latest report I read,

MSFT grabbing market share from Amazon (Amazon grabbing market share from Google)...............the thing about MSFT out of all the companies it has the best position for almost any industry.

Social Media, Data, Cloud, Energy, etc...........definitely has more room to grow. What MSFT does also is acquire companies that fit along its long term trajectory. So Discord is definitetly a plus similar

to what it did with Linked In which is a money printing machine now.

Azure is also going to be a power house in next few years.
 

ManofOne

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Are they though? They came about because these funds are sitting on historic piles of cash. It’s going to cost a bit more to attract the right company.

They're paying a premium right now based on current market. I'm not sure what 451 used as a base but normally under these conditions research has shown the premium paid on average is around 37.0%
 
Oct 26, 2018
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Had a nice finish.

(+1.72%)

Up about 3 - 3.5% in a week. 5 green days in a row. If tomorrow can be another one, it'll be a happy weekend!
 
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CrankyJay™

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They're paying a premium right now based on current market. I'm not sure what 451 used as a base but normally under these conditions research has shown the premium paid on average is around 37.0%
I guess it depends on what the back-end deal is. For example, TDAC/lottery.com, Trident Acquisitions will gain millions of shares when the VWAP of commons hits and stays above 13 and then 16 for some pre-determined number of trading days.

I think, sure, they take the upfront risk but if they’re smart they’re getting paid back a lot more over time with deals like this. And it’s all at the expense of retail investors.
 
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ManofOne

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I guess it depends on what the back-end deal is. For example, TDAC/lottery.com, Trident Acquisitions will gain millions of shares when the VWAP of commons hits and stays above 13 and then 16 for some pre-determined number of trading days.

I think, sure, they take the upfront risk but if they’re smart they’re getting paid back a lot more over time with deals like this. And it’s all at the expense of retail investors.

What's the probability of a success for a SPAC though to generate its returns within a reasonable period. I think that one of the factors 451 RESEARCH used.

P/S ratio of 12 is fairly high when the S&P is around 2 to 3.
 

ManofOne

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Spac boom under threat as deal funding dries up​


Hundreds of blank-cheque companies face uncertainty after investors balk at high valuations




A crucial source of funding for blank-cheque company deals is drying up, pointing to a slowdown for one of Wall Street’s hottest products after a record-breaking quarter. Advisers to special purpose acquisition companies, which float on the stock market and then go hunting for a company to buy, say they are struggling to find so-called Pipe financing to complete their planned acquisitions. Pipe is short for private investment in public equity. Institutional investors such as Fidelity and Wellington Management have ploughed billions of dollars into Pipe deals since the Spac boom emerged last year, providing a route to the public markets for businesses ranging from established software and entertainment companies to speculative developers of flying taxis and electric vehicle technology. But people involved in arranging the deals say Pipe investors are overwhelmed by the sheer volume of transactions and put off by rising valuations.

There’s only so much illiquid exposure investors are going to want to take A bank executive who has worked on numerous Spac deals “There is a lot of indigestion,” said one senior bank executive. “The pendulum has swung to where if you’re in the market with a Pipe right now, it’s going to be really hard and painful. A Spac goes back into the ocean if you can’t get a Pipe done.” Spacs raise money when they first list on the stock market but they typically require more capital to fund their acquisition. Large institutional investors also act as a form of validation of the target company’s business prospects and its valuation. There have been 117 deals announced this year, but the growing backlog in Pipes could prove to be a big roadblock for the 497 blank-cheque companies that are still looking for a deal, according to Refinitiv data. Only about 25 per cent of Spacs listed since 2019 have completed deals so far.

Sponsors typically have two years to complete a merger, otherwise they have to return the capital they raised to investors. Several market participants said the slowdown would lead to a “flight to quality” and put downward pressure on the valuations of acquisition targets, which have skyrocketed in recent months. Almost all of the executives the Financial Times interviewed said they were seeing Spac deals recut to offer more favourable terms to Pipe investors. One said: “It’s called the buy side for a reason.” Because Pipe investments are considered illiquid — the money is tied up at least until the deal closes and there may be a lock-up period after that — investors can usually get favourable terms. They can see the deal before it has been announced to the public and are almost always able to buy in at the Spac listing price of $10. But earlier this year, Pipe investors were clamouring to get in on Spac deals.

The group of institutions that backed Churchill Capital IV’s acquisition of electric carmaker Lucid paid a 50 per cent premium to the Spac listing price to get a stake, almost unheard of at the time. The recent reversal has Pipe investors negotiating lower valuations for businesses, giving them larger stakes for the same amount of money, and better pricing terms. “There’s only so much illiquid exposure investors are going to want to take,” said another bank executive who has worked on numerous Spac deals. Recommended Mergers & Acquisitions Spac boom fuels strongest start for global mergers and acquisitions since 1980 The Pipe slowdown is bad news for banks, which are unable to collect on advisory fees if they cannot sell a deal to investors. It is also starting to affect the pipeline of Spac launches, lawyers and bankers said. In the first seven days of this month, only four blank cheque companies have gone public.

That compares with 41 during the first week of March and 28 in February, Refinitiv data shows. “Where we had been at a crazy, mad, rush pace in January and February, we’re kind of at a standstill right now on the IPO side,” said Ari Edelman, partner in Reed Smith’s corporate practice. For those that already went public and are looking for a target, he added, “the hope is this is just a bump in the road. And then ultimately the deal gets done.”
 
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GHG

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Spac boom under threat as deal funding dries up​


Hundreds of blank-cheque companies face uncertainty after investors balk at high valuations

I'm ok with this. We have all sorts of trash being brought to market via SPAC deals at the moment, it's starting to seem like anything goes.

The fact that it's 2021 and WeWork manage to land a SPAC deal tells you everything you need to know.
 
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SpartanN92

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Kentucky, it’s not as bad as Australia
I don't think appl is going to have a good quarter.
Really? Man I know this is 100% anecdotal but on the ground floor of actually selling iPhones I cant keep up, people are slinging that stimulus money like CRAZY right now and it’s 60% iPhone at my store 🤷🏻‍♂️

I know that isn’t the broader picture and ignores other market factors but I don’t remember ever selling this many iPhones in March/April before and I’ve been in the industry for 10 years.
 
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ManofOne

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Really? Man I know this is 100% anecdotal but on the ground floor of actually selling iPhones I cant keep up, people are slinging that stimulus money like CRAZY right now and it’s 60% iPhone at my store 🤷🏻‍♂️

I know that isn’t the broader picture and ignores other market factors but I don’t remember ever selling this many iPhones in March/April before and I’ve been in the industry for 10 years.

The effect of chip shortages, a slider in exports and imports, higher shipping costs. I’m not so sure
 
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SpartanN92

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Kentucky, it’s not as bad as Australia
The effect of chip shortages, a slider in exports and imports, higher shipping costs. I’m not so sure
The chip shortages we are feeling on iPads. It’s DAMN tough getting an iPad in inventory right now but they are keeping us very well supplied on iPhones.

We will see what happens. On the sales floor end of things we are making money hand over fist right now with iPhones absolutely leading the way.

Granted I’m just at one store in a shitty small town in Western Kentucky lol My experience may not be anywhere near indicative of the broader situation.
 

ManofOne

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The chip shortages we are feeling on iPads. It’s DAMN tough getting an iPad in inventory right now but they are keeping us very well supplied on iPhones.

We will see what happens. On the sales floor end of things we are making money hand over fist right now with iPhones absolutely leading the way.

Granted I’m just at one store in a shitty small town in Western Kentucky lol My experience may not be anywhere near indicative of the broader situation.

Once I see the figures for April which is start of Q2 on 13th. I’ll see what increased and what decreased
 
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