What are you buying today?

[treasurehunt]

TGH, TRTN, AMZN, GOOG, JPM.

 

Sold some WPC to raise cash to buy these.

[Spekulatius]

10 hours ago, tnathan said:

What is the JXN thesis?

Lots of Capital returns.

[CafeB]

In past week, small additions to small positions in ATR, ICE (recently announced acquisition of BKI), TJX, TROX

[AzCactus]

BROS 

[Ross812]

More 2024 AIV $5s and $7.5s. FB, LBRDK, TMUS, C.

[aws]

Picked up some BGFV

[longlake95]

GIL.TO and BRK.b

[Dave86ch]

Added to FB

[lnofeisone]

HQI, AIV, SNCAF - the COBF ETF. 

[CorpRaider]

Just bought a little tracker/send me proxies position in BF.B/A.

Edited May 19, 2022 by CorpRaider

[kab60]

I don't do merger arb, but I bought some Twitter. Musk gets away with a lot of crazy shit, but I don't see how he'll be able to break a deal where he waived due dilligence and whined about bots before, during and after closing.

Edited May 20, 2022 by kab60

[Miklagard]

44 minutes ago, kab60 said:

I don't do merger arb, but I bought some Twitter. Musk gets away with a lot of crazy shit, but I don't see how he'll be able to break a deal where he waved due dilligence and whined about bots before, during and after closing.

As far as I understand it, it costs 1bn to break the deal. So he should be able to break it, just pay the "fine". Anyhow, I took a small position myself, because it seems like he is negotiating for a lower price, and of course because of adrenaline.

[kab60]

12 minutes ago, Miklagard said:

As far as I understand it, it costs 1bn to break the deal. So he should be able to break it, just pay the "fine". Anyhow, I took a small position myself, because it seems like he is negotiating for a lower price, and of course because of adrenaline.

That's not how these things work. He can't just pay 1B and walk away.

[Miklagard]

1 hour ago, kab60 said:

That's not how these things work. He can't just pay 1B and walk away.

 

What is this 1B everybody is talking about then? If something is wrong because of Twitter, he can legally get out and still have to pay 1B? Or is it Twitter that needs to pay 1B if court is deciding the <5% bot thing is a breach of agreement?

 

Quite new to this, and willing to learn.

[spartansaver]

MNRO

[Simba]

2 hours ago, Miklagard said:

 

What is this 1B everybody is talking about then? If something is wrong because of Twitter, he can legally get out and still have to pay 1B? Or is it Twitter that needs to pay 1B if court is deciding the <5% bot thing is a breach of agreement?

 

Quite new to this, and willing to learn.

 

Not really familiar with the deal, but maybe this help? It kind of reads that Elon owes $1B if he fails to perform his side of the deal, or if Twitter is willing/able and Elon cancels under a valid termination under certain specified circumstances 

 

I'm really far away from the details, so maybe others can chime in as well!

 

"

Upon valid termination of the merger agreement under certain specified circumstances, Parent will be required to pay, at the direction of Twitter, a termination fee of $1,000,000,000, the payment of which has been guaranteed pursuant and subject to the terms and conditions of the limited guaranty. Specifically, the termination fee will be payable by Parent to Twitter if the merger agreement is terminated by Twitter:

 

•

as a result of a breach or failure by Parent, Acquisition Sub or Mr. Musk to perform any of its respective representations, warranties, covenants or other agreements in the merger agreement (subject to a 30-day cure period), which breach or failure would give rise to the failure of relevant conditions to effect the closing of the merger; or

 

•

because Parent and Acquisition Sub failed to consummate the merger as required pursuant to, and in the circumstances specified in, and subject to the terms of, the merger agreement while Twitter stood ready, willing and able to consummate the merger and the other transactions contemplated by the merger agreement."

 

PREM14A (sec.gov)

 

 

Edited May 20, 2022 by Simba

[KPO]

4 hours ago, Miklagard said:

 

What is this 1B everybody is talking about then? If something is wrong because of Twitter, he can legally get out and still have to pay 1B? Or is it Twitter that needs to pay 1B if court is deciding the <5% bot thing is a breach of agreement?

 

Quite new to this, and willing to learn.

If you’re interested in this sort of thing you might consider TEN which frequently sports a 25-28% rate of return on the cash buyout price. Of course ATVI is another at a 22% potential return, but it’s close is further out and seems to have more political pushback, which is possibly just noise. I’m in on both because I have zero exposure to these businesses otherwise and am fine to own both if the deals don’t materialize and they drop 10-15%.  Good luck. 

[Jaygo]

I bought a bit of Aritzia, GFL, Smart centres,  and Joe today. All current holdings but just adding on what seem to me like good prices when I had a slug of cash come in.

 

I sold half my Brk at 331 on the way up and was in pain watching it get into the 360's  I may just buy it all back now. I need to focus on work and am probably best putting my cash back in here and not watching the markets for a while. 

 

My customers are banging the door down so dicking around with stocks would be a poor waste of mental energy considering my trading portfolio size

[kab60]

5 hours ago, Miklagard said:

 

What is this 1B everybody is talking about then? If something is wrong because of Twitter, he can legally get out and still have to pay 1B? Or is it Twitter that needs to pay 1B if court is deciding the <5% bot thing is a breach of agreement?

 

Quite new to this, and willing to learn.

He needs a valid reason to walk - he can't just make up excuses and pay 1B. I think this sums it up pretty well: https://yetanothervalueblog.substack.com/p/twitter-the-circus-will-have-a-happy?utm_source=%2Finbox&utm_medium=reader2&s=r

[DooDiligence]

8 hours ago, kab60 said:

He needs a valid reason to walk - he can't just make up excuses and pay 1B. I think this sums it up pretty well: https://yetanothervalueblog.substack.com/p/twitter-the-circus-will-have-a-happy?utm_source=%2Finbox&utm_medium=reader2&s=r

 

Nice find, thanks.

[Spekulatius]

22 minutes ago, DooDiligence said:

 

Nice find, thanks.

I think he can get out - happens all the time with mergers. Can't find financing etc., employees against him whatever. He does need to pay $1B most likely.

NASDAQ comps (SNAP etc) have fallen ~25% since deal was announced. On a break, I think this could be a high twenties stock.

Edited May 20, 2022 by Spekulatius

[rkbabang]

I expect I'll be buying a lot of JOE today.  At the beginning of the month I wrote 5 put contracts expiring today at $50 strike.  With the money I received for them my effective price is $47.98/share.  It's trading at $47.92 right now as I type this, so I guess I didn't get a steal.  I'll be keeping the shares though.

[DooDiligence]

1 hour ago, Spekulatius said:

I think he can get out - happens all the time with mergers. Can't find financing etc., employees against him whatever. He does need to pay $1B most likely.

NASDAQ comps (SNAP etc) have fallen ~25% since deal was announced. On a break, I think this could be a high twenties stock.

 

Probably so, especially if it's at managements discretion. Musk seems to have some leverage over Jack.

 

I haven't bought a ticket to the circus in a long time and will pass on this 3 ringer.

I've finally shifted my attitude fully towards long term ownership stakes (for better or worse).

Twitter may or may not be a good LT opportunity, but trying to make a quick buck on optics doesn't appeal to me.

 

What I found interesting in the substack writeup was the part about Abbot Labs.

I have no position there but my Mom does. She's owned since way before the AbbVie split.

She's got some big deferred gains in both these issues.

 

She and I look at her portfolio once or twice a year and the results have been fabulous.

Virtually zero trading in her account although I did convince her to buy Disney and Dominos recently.

 

edit: I've tried for years to convince her to get rid of ATT. Now she gets it after a decade of blah.

 

I'm still sitting on about 14% investible cash + a 2 year cushion for living expenses.

Looking at the fattest pitches for long term RBI's.

May foul a few off as I DCA into positions.

Edited May 20, 2022 by DooDiligence

[KPO]

BA

[Blugolds]

little nibble on BRK and COST, hoping both continue to go down and I can add more