What's new
By:
USCHO Fan Forum

This is a sample guest message. Register a free account today to become a member! Once signed in, you'll be able to participate on this site by adding your own topics and posts, as well as connect with other members through your own private inbox!

  • The USCHO Fan Forum has migrated to a new plaform, xenForo. Most of the function of the forum should work in familiar ways. Please note that you can switch between light and dark modes by clicking on the gear icon in the upper right of the main menu bar. We are hoping that this new platform will prove to be faster and more reliable. Please feel free to explore its features.

Business, Economics, and Taxes 2: That's Why We Fight to Take the Means Back

The market is behaving irrationally. Yeah, I know: Alert the media. All investors need to hear are the letters "A" and "I" and they just throw money at it. But the problem is that even if every investor acted rationally and refused the siren's call of an AI stock for $135, the index funds still have to buy it, within 5 or 15 days, depending on the fund. With only 5% of the stock available to purchase, and index funds mandated to buy, the price will spike (and the rest of the market will suffer as funds sell off assets to raise cash to buy SpaceX). Then after as little as 5 days, the insiders who helped Lil Hitler buy Twitter will be able to dump their stock at the inflated price, sending the stock price through the floor (and taking all those index funds - our retirement funds) with it. It will be the largest transfer of wealth in human history, and it will all go to a handful of people in a very short time.

And don't fret about poor Elmo. Yes, he can't sell his shares for 366 days, but the board just gave him an extra 1.3 billion shares as a bonus, with the stipulation that he gets the company to a $7.5 trillion valuation and a colony of 1 million people on Mars. So outlandish it will never happen in our lifetimes. Right? But he has gotten the board to sign off on his ability to use those shares as collateral so he can leverage them as if they were real. Oh, and they are Class B shares, with 10x voting power. So he has 85% voting power and only owns a fraction of that in stock.
 
The stock market has been irrational forever. That I know. I finally realized it when our company stock dropped on good quarterly data and rose on bad data. It was almost as if the investors wanted us to do bad to fire people.

And when I was berated by Jac about P/E as being an important metric, I figured out that “shareholder value” was a scam. P/E is a measure of how crappy a business is really being operated so that its “value” was way higher than the real earnings. Were we taught wrong that the goal of a business is to bring in more money than it costs to sell something, otherwise known as making a profit? And the more profit you make the more valuable a company…. That was the era that cemented Toyota ahead of Ford forever.
 
MichVandal said:
Looking to the Sx ipo again re enforces my opinion that investors don’t really understand business.
Click to expand...
I can't find the TikTok but someone laid out a pretty good reasoning for Musk pulling this stunt:

It gives his Twitter shareholders a boost by giving them stock in SpaceX.

X, formerly Twitter, lost a lot of its value after the purchase and subsequent switch to private holding. Private investors are antsy. xAi bought Twitter, but xAi hasn't seen the returns expected. SpaceX is a darling that just bought xAi, so Twitter investors now get SpaceX stock thanks to the mergers.

Now, Musk can make SpaceX go public and allow Twitter investors to cash out their SpaceX stocks earlier than the normal 180 day holding period.

Then the stock can crash after the Twitter investors get their bag.
 
aparch said:
I can't find the TikTok but someone laid out a pretty good reasoning for Musk pulling this stunt:

It gives his Twitter shareholders a boost by giving them stock in SpaceX.

X, formerly Twitter, lost a lot of its value after the purchase and subsequent switch to private holding. Private investors are antsy. xAi bought Twitter, but xAi hasn't seen the returns expected. SpaceX is a darling that just bought xAi, so Twitter investors now get SpaceX stock thanks to the mergers.

Now, Musk can make SpaceX go public and allow Twitter investors to cash out their SpaceX stocks earlier than the normal 180 day holding period.

Then the stock can crash after the Twitter investors get their bag.
Click to expand...
Pretty much. Twitter was bought by xAI for stock, no cash. Then xAI was bought for stock, no cash. So the banks and investors (Saudis) will finally be paid back after holding the bag all these years. Now we get to hold the bag.

bag holder ath bagholder.png

My question is with the float vs what the general market gets to buy. Most IPOs have 10-15% of stock available for the general public. SpaceX will make 35% available for the ̶s̶u̶c̶k̶e̶r̶s̶ ̶s̶y̶c̶o̶p̶h̶a̶n̶t̶s̶ savvy investors on forums like r/WallStreetBets. But according to several news casts I have watched, there is only a 5% float where the funds will have to buy, hence the price will spike because demand will strongly outpace supply. Why can't the funds buy from that 35% pool?

I was offered a chance to buy in at the IPO price but on the condition that I couldn't sell for 30 days. Also, my price is $135 but there is a 20% buffer in case of those price spikes. So I would have had to set aside $162 for every share I wanted to buy. No. I am shorting the market and waiting for the carnage to hit the NASDAQ. Hey, if I'm wrong, I'm wrong and lose my portfolio (but let's be honest, it's all going to Lil Hitler and his pals anyway). If I'm right and able to cash out I might be able to leave this godforsaken country behind.
 
Gas back to $4.09 locally in the last 10 days. I guess those who trade futures are optimistic that the Iran war will end soon? I know OPEC committed to increasing supply, and other countries have reserves of their own, but it still seems overly optimistic.
 
screw worm in new mexico now, also more cases in texas and one is a dog. And of course its all bidens fault.
 
FadeToBlack&Gold said:
Gas back to $4.09 locally in the last 10 days. I guess those who trade futures are optimistic that the Iran war will end soon? I know OPEC committed to increasing supply, and other countries have reserves of their own, but it still seems overly optimistic.
Click to expand...
I just came to post that I finally have a Sub-$4 price down by where I work (usually $0.20-$0.50 cheaper than the majority of the area and that gap grows as you head towards Chicago proper).
 
rufus said:
That's 'dumb' with a 'b'.

Most people don't know that.
Click to expand...
It was hard to spell with the inverted first letters. Made my brain cramp.

But his worshipers must think this is good for them, moreso if the richest people are gaining more money that they will never be able to spend for multiple generations while they can't afford rice and beans for dinner.

How in the world after 50 years of republicans burning down the economy do people actually believe that they are good for the economy? Or worse, that we need business people running the country? Exactly zero of them have done anything good for anyone. Well, other than themselves.
 
The ladies next to me at lunch were talking about Dump.

"He just does whatever he wants"
"The stock market goes up and down every day"
"He said an Iran deal is coming, and it's just to get the market up"

All I can do is laugh in white male.
 
MichVandal said:
It was hard to spell with the inverted first letters. Made my brain cramp.

But his worshipers must think this is good for them, moreso if the richest people are gaining more money that they will never be able to spend for multiple generations while they can't afford rice and beans for dinner.

How in the world after 50 years of republicans burning down the economy do people actually believe that they are good for the economy? Or worse, that we need business people running the country? Exactly zero of them have done anything good for anyone. Well, other than themselves.
Click to expand...

Hi. I'm your friendly neighborhood Scary Minority Person.

His most ardent worshipers are screaming about Pride Month, the BAY-BEEZ, and how EEEEEVIL the DEI is, while believing the wealth will eventually trickle down to them. When Pink Floyd said "we don't need no education," they said "hell yeah, brother!"
 
You must log in or register to reply here.
Back
Top