Share tips thread (Vol 2)
Discussion
bad company said:
Jambo85 said:
g4ry13 said:
bad company said:
g4ry13 said:
I also lose 4 shares for every 19 I have in the process!
Not sure why you can't wrap your mind that it's not free money and it's not a good deal for holders.
You gain a dividend and the new shares should be the same value as the previous holding.Not sure why you can't wrap your mind that it's not free money and it's not a good deal for holders.
I gain a dividend of £2546.50 (5000*50.93p)
My shares are reduced (Tesco will reduce the number of shares every shareholder owns. Shareholders will get 15 new shares for every 19 shares held) and i'm left holding 3947 shares at £2.40.share. Equating to a holding of £9473.68
£9473.68 + £2546.50 = £12,020.18
vs not having the dividend: 5000*£2.40 = £12,000
So with the dividend it's a £20 profit. But then the dividend is going to be taxable so really it's a dud.
Tesco's mcap today (pre-divvie) is £24bn.
If as part of the deal they give £5Bn away then why will the mcap post deal still be £24Bn? Surely having given away £5Bn the mcap of the company will be less ?
The argument above seems to be that the mcap will stay constant before and after the deal; therefore the share price will go up BUT surely as they have £5Bn less stashed in the bank (20% of their current mcap) the share price will find some new level probably not far off where it is today. The way I see it is that Tesco are giving away 20% of their mcap and reducing the number of shares by 20% so the sp before and after the deal will be about the same.
Why do above posters believe the mcap will stay the same having given away £5bn?
Michael Burry (The Big Short) who is manly known for shorting has just disclosed that he held 3M shares in Game Shop that he purchased in 2019 for $5.50 per share. He sold his holdings and booked a $271M profit. Clearly sold at an average in the $90s and no where near the $400! Still what a play
Burwood said:
Michael Burry (The Big Short) who is manly known for shorting has just disclosed that he held 3M shares in Game Shop that he purchased in 2019 for $5.50 per share. He sold his holdings and booked a $271M profit. Clearly sold at an average in the $90s and no where near the $400! Still what a play
Indeed. He seems genuinely like an insanely good spotter of things about to explode. Problem for most on Reddit is that they saw it on the actual news before buying in.
When your mum knows what GME is, you are FARRRRR to late to get involved
g4ry13 said:
He's also been shorting Tesla for quite some time.
Ouch. He's a bright guy but that's not a bet I would like to take, I took slightly over $50k last year and am still invested @ 60% of portfolio in $TSLA - (helped to offset some horrendous risky bets that didnt pay off)...YTD 22.93%
1YR 180.76%
Brother D said:
g4ry13 said:
He's also been shorting Tesla for quite some time.
Ouch. He's a bright guy but that's not a bet I would like to take, I took slightly over $50k last year and am still invested @ 60% of portfolio in $TSLA - (helped to offset some horrendous risky bets that didnt pay off)...YTD 22.93%
1YR 180.76%
He’s right. It should be absolutely way down on where it is.
There is no logic at all to your returns unfortunately. TSLA isn’t rooted in reality.
It’s way more overvalued than GME was at its peak last week.
p1stonhead said:
But.....
He’s right. It should be absolutely way down on where it is.
There is no logic at all to your returns unfortunately. TSLA isn’t rooted in reality.
Define reality.He’s right. It should be absolutely way down on where it is.
There is no logic at all to your returns unfortunately. TSLA isn’t rooted in reality.
Reality right now seems to be a stock value is based on what fanboys are prepared to pay for it. It's going to take a change in perception for that to collapse.
It's classic bubble behavior.
jsf said:
p1stonhead said:
But.....
He’s right. It should be absolutely way down on where it is.
There is no logic at all to your returns unfortunately. TSLA isn’t rooted in reality.
Define reality.He’s right. It should be absolutely way down on where it is.
There is no logic at all to your returns unfortunately. TSLA isn’t rooted in reality.
Reality right now seems to be a stock value is based on what fanboys are prepared to pay for it. It's going to take a change in perception for that to collapse.
It's classic bubble behavior.
Brother D said:
g4ry13 said:
He's also been shorting Tesla for quite some time.
Ouch. He's a bright guy but that's not a bet I would like to take, I took slightly over $50k last year and am still invested @ 60% of portfolio in $TSLA - (helped to offset some horrendous risky bets that didnt pay off)...YTD 22.93%
1YR 180.76%
jsf said:
p1stonhead said:
But.....
He’s right. It should be absolutely way down on where it is.
There is no logic at all to your returns unfortunately. TSLA isn’t rooted in reality.
Define reality.He’s right. It should be absolutely way down on where it is.
There is no logic at all to your returns unfortunately. TSLA isn’t rooted in reality.
Reality right now seems to be a stock value is based on what fanboys are prepared to pay for it. It's going to take a change in perception for that to collapse.
It's classic bubble behavior.
I wouldn't put TSLA in the same vein as GME or AMC which provided a contribution to this year's profits after only 4 hours.
I can't get my head around these guys losing 100's or even Mils by not having a stoploss in place. Profit is profit.
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