Stocks and Trading Thread - Channeling your inner Mono

[crazy canuck]

How's that?  A stake that big can signal a takeover bid.  A takeover means a premium on the current price.  Makes perfect sense for the price to rise.

I see your point that it would raise prices if a take over to occur, but I have no idea why.

How does that make Twitter more valuable? If tesla owns Twitter what are they going to do, put out some poorly assembled tweets?

Elon is just a weird phenomenon. Like when he made a vague tweet and a companies value went up 3000% 

The more obvious conclusion is that people can convince themselves of anything.

[HVC]

Elon has disclosed a 9.2% share of Twitter stock.  Stock price jumped 25%.

And this is why the market makes no sense.

Your first mistake is assuming the market ever makes sense.  The notion of rational buyers and sellers is an assumption economists need to make to create their models.  They cannot model actual behaviour and particularly irrational decisions. 

I'm obviously not an economist so the hell if I know. The stock market just seems like an old school rich people board game that somehow became a thing everyone wants in on. It's 50 times bigger now then it was in the 80s and a lot of transactions are run by algorithms.

[crazy canuck]

Elon has disclosed a 9.2% share of Twitter stock.  Stock price jumped 25%.

And this is why the market makes no sense.

Your first mistake is assuming the market ever makes sense.  The notion of rational buyers and sellers is an assumption economists need to make to create their models.  They cannot model actual behaviour and particularly irrational decisions. 

I'm obviously not an economist so the hell if I know. The stock market just seems like an old school rich people board game that somehow became a thing everyone wants in on. It's 50 times bigger now then it was in the 80s and a lot of transactions are run by algorithms.

The thing you need to understand is guys like Yi who try to find rational reasons for why the shares of particular companies go up or down in value are just kidding themselves.  But they have to because they bought the line that the market is the amalgamation of all the decisions of rational decision makers.

[Admiral Yi]

I see your point that it would raise prices if a take over to occur, but I have no idea why.

How does that make Twitter more valuable? If tesla owns Twitter what are they going to do, put out some poorly assembled tweets?

Elon is just a weird phenomenon. Like when he made a vague tweet and a companies value went up 3000% 

First the party taking over *has to* pay a premium, else the current shareholders won't want to give up their shares.

Second, they *can* pay a premium because they believe they can increase profits, by cutting costs, or "creating synergies" with their existing company, or stripping out the assets and selling off the carcass.

[Admiral Yi]

I'm obviously not an economist so the hell if I know. The stock market just seems like an old school rich people board game that somehow became a thing everyone wants in on. It's 50 times bigger now then it was in the 80s and a lot of transactions are run by algorithms.

It became a thing because brokerage fees got a lot cheaper, online brokerages made trading easy peasy, and they stopped quoting prices in eighths of a dollar.

[Jacob]

So what do you reckon?

Will Trump get his Twitter account back now that Elon Musk is on the board, and the largest shareholder of Twitter?

[The Minsky Moment]

How's that?  A stake that big can signal a takeover bid.  A takeover means a premium on the current price.  Makes perfect sense for the price to rise.

8-K filed today: "For so long as Mr. Musk is serving on the Board and for 90 days thereafter, Mr. Musk will not, either alone or as a member of a group, become the beneficial owner of more than 14.9% of the Company's common stock outstanding at such time, including for these purposes economic exposure through derivative securities, swaps, or hedging transactions."

[Josquius]

So what do you reckon?

Will Trump get his Twitter account back now that Elon Musk is on the board, and the largest shareholder of Twitter?

I knew Musk was a dick but is he a trumpy?

[Jacob]

So what do you reckon?

Will Trump get his Twitter account back now that Elon Musk is on the board, and the largest shareholder of Twitter?

I knew Musk was a dick but is he a trumpy?

He tweeted pro-convoy stuff, at least. And Trump and Musk are social peers, as well. I don't think it's a given, but neither is it impossible... which is why I ask.

[Syt]

So what do you reckon?

Will Trump get his Twitter account back now that Elon Musk is on the board, and the largest shareholder of Twitter?

Good way to potentially start a mass exodus.

[Admiral Yi]

So what do you reckon?

Will Trump get his Twitter account back now that Elon Musk is on the board, and the largest shareholder of Twitter?

Musk's beefs so far have been with the SEC and California, for locking down his factory.  I've personally never caught a whiff of Trumpishness from him.

[Admiral Yi]

That being said, I sure hope Elon doesn't do anything boneheaded at Twitter that kills the Tesla brand.

[Jacob]

So what do you reckon?

Will Trump get his Twitter account back now that Elon Musk is on the board, and the largest shareholder of Twitter?

Musk's beefs so far have been with the SEC and California, for locking down his factory.  I've personally never caught a whiff of Trumpishness from him.

He tweeted in support of the "freedom" convoy in Canada, which is firmly across the line as far as I'm concerned.

And being a billionaire tech bro, I wouldn't be surprised to see him embrace free speech absolutism when it doesn't affect him personally. But that's just a hunch on my side.

[HVC]

That being said, I sure hope Elon doesn't do anything boneheaded at Twitter that kills the Tesla brand.

He called a rescuer a pedophile, with no repercussions. I think the brand is fine

I just wish tesla concentrate more on the power walls and solar.

[Admiral Yi]

A stock ownership sidebar, or as Raz would say: question.

What's the dodgiest stock you own, or would be wiling to own?  In terms of climate, or governance, employee treatment or whatever.

I own Uber and I own Alerian Master Limited Partnership  ETF, a US oil pipeline ETF.