Musk to Buy Twitter I looked at the loan agreement and think it says ( I am not an accountant or lawyer) that is TSLA drops 35% from the price at which loan starts ( I don't think they pony up money until deal closes) Musk has to put up more cash ( not more shares)
Before market open today, TSLA is down 23% from it's high of 1145 to 876, or about 65% of the gap to the margin call ( again, I don't think the loan has been made yet).
The margin call would be at $750 if the had borrowed the money at the peak of TSLA.
Obviously he need this drop in TSLA to bottom out before he gets the cash, which is probably what he is counting on.
IT is unclear where he will get the cash to pay the interest on the loan, especially if all the senior management and coders at TWTR ( who will become very rich when they cash out all their options) leave and TWTR turns into another right wing cesspool.
How will that be good for revenues at TWTR?
IF I were a TSLA stockholder, customer or supplier, I would be seriously worried that the company is in the control of an ideologue, not a real manager.
2022 YTD Damage "I never heard anyone credible say the timelines were short, perhaps my being ignorant, but I do wonder whom
@davfor was thinking of or reading."
Causing the thread to drift again, but I just noticed your comment...Here is someone it may make sense to pay some attention to:
The temperature will keep rising even as we are reducing these emissions. So you are asking people now to make quote-unquote sacrifices while the first benefits will accrue to their children and the real benefits will accrue to their grandchildren. You have to redo the basic human wiring in the brain to change this risk analysis and say, I value 2055 or 2060 as much as I value tomorrow. None of us is wired to think that way.
2022 YTD Damage @MikeM - Yep. As you know the miners don’t always run in sync with the metal. I’ve held mining fund OPGSX for years and haven’t bought or sold any for about a year. Dead flat in my case. Lipper shows it up about
1% YTD, but down 5% for a full year.
Gold flirted with $2,000 the past month than fell to around $
1900 recently. Has been below $
1800 during the past
12-
15 months. Have a bit in mining company WPM. So, when I want to add or cut exposure to the miners it’s easier to buy or sell WPM than messing with a mutual fund & the restrictions they impose.
Haven’t held bullion, but PRPFX does.
OUCH ! Since
1976, there have been only two periods when national housing price percent changes Y/Y (maroon line in graph) were negative.
One was briefly in the
198
1-
1982 recession following a spike in 30-year mortage rates (blue line) to above
18%. The other was more prolonged, between mid 2007 and mid 20
12, as mortgage rates declined slowly and gently from 6&frac
12;% to 3&frac
12;%.
https://fred.stlouisfed.org/graph/?g=OAHl (interactive graph)
OUCH ! +1.
2022 YTD Damage Gold was up a bit yesterday. I was tempted to add a little but didn't. I may add to IAU today and maybe a little more to commodities, COM. I could be wrong but I still think those 2 ETFs might be "relatively" decent plays throughout this year.
edit:
@hank, gold is up ~7% this year, ~
12%
1year. Sounds like your miners fund is a different story(?)
OUCH ! When we were buying our homes back in the 1970s the mortgage rates were typically 8% to 8.5%. However did we all manage without the real estate world crashing and burning?
OUCH ! Held tsla -12% today Ouch
Many pundits say housing bubbles crash maybe imminent ...Not many folks have $ pay mortgage due to current rates/limited new applications /less new house sell...major banks announced jobs cut next quater.
Ukraine / Feds rates/ covid/ lack supplies =/> 2009 crash ?!
We Maybe near begin/mid market crash now
Cathie Wood’s Flagship Fund is Down … Money is Still Flowing. WSJ On Friday May
13 ARKK rose nearly
12% bringing its YTD return to -53.9% according to Lipper. That’s still substantially worse than the -45% reported by the WSJ in this earlier excerpt. I will no longer be updating the return here as I’ve done now for several weeks. However, you can check the performance at
Lipper. Thanks for reading my post.
(Extended excerpt)
Cathie Wood’s ARK Innovation exchange-traded fund keeps falling, but investors aren’t jumping ship. Shares of the popular ETF, which is known by its ticker ARKK, have declined 45% so far in 2022—including 21% in April alone—as rising interest rates punish stocks that are valued on the prospect of robust future growth. Those are just the type of companies that ARKK targets through its investment theme of “disruptive innovation.”Its big holdings include Tesla Inc., Zoom Video Communications Inc., Roku Inc., Teladoc Health Inc. and Coinbase Global Inc. With the exception of Tesla, those stocks have all fallen more than 35% this year. The S&P 500 has dropped 10% over the same period, while the tech-heavy Nasdaq Composite has retreated 18%.
Ms. Wood and her fund shot to prominence in 2020, when its shares soared nearly 150% as the Federal Reserve slashed interest rates to near zero and investors loaded up on risk. The S&P 500, by comparison, rose 16% that year. Since then, it has been tough going. While the S&P 500 gained 27% in 2021, ARKK shares slumped 24%, stung as rising government bond yields prompted a flight from high-growth stocks. The downdraft has continued this year as the fund sticks to its strategy of buying and holding companies it believes offer the greatest potential for innovation. Many of them haven’t yet achieved consistent profitability. Despite the drawdown, investors haven’t fled ARKK. Instead, they have funneled more than $658 million into the fund this year, according to FactSet data through Thursday, including about $59 million in the latest week. That is even as investors yanked $2.3 billion year-to-date from the Invesco QQQ Trust, a prominent ETF tracking the Nasdaq-100 index … From:
The Wall Street Journal April 25, 2022
Article was published Monday morning. So numbers are a couple days out of date. I also wonder about the conclusion here that money hasn’t fled. My hunch is that a lot fled and a lot of new money has raced in hoping to buy near bottom. Other thoughts welcome.
2022 YTD Damage If PRWCX gets to -12% YTD, I'd buy more, by using bond money. I have a strict wall between non-taxable and taxable stuff, now.
No quarrel on that. I just enjoy picking on DG. Truth is, most everything is suffering at present.
FWIW - My gold fund (static position) OPGSX has fallen all the way back to what it was worth a year ago - after running hot the last several months. Not a complaint - just an observation.
2022 YTD Damage If PRWCX gets to -12% YTD, I'd buy more, by using bond money. I have a strict wall between non-taxable and taxable stuff, now.
Musk to Buy Twitter
Calpers Plans to Vote to Replace Warren Buffett as Berkshire Hathaway’s Chairman If one is interested in talking about a company’s social responsibility, I would prefer it is discussed in the context of the entire industry in which it operatesIf other utilities were emitting GHGs at a rate that would lead to 5°C increase in global temperatures, then would a utility emitting gasses at a rate raising temps just 4°C be a responsible company? Or if a utility operated coal plants more efficiently than others, so that it lost less money per KWh, would that be good for investors or just less bad?
But all we're talking about here are
disclosure proposals. So here's a look at BH's disclosures in the context of the entire industry in which it operates.
The investor-led initiative Climate Action
100+, whose members manage more than $54 trillion in assets, has been trying to cut through companies’ greenwashing statements by demanding uniform disclosures about their decarbonization plans. The group released its first-ever
scorecard of climate-related disclosures in March [202
1], and many utilities performed poorly — but none so poorly as Berkshire Hathaway, which
failed by every metric.
Since that was written, the March 2022 benchmark report was released.
BH still failed every metric.
For completeness only, coal fired plants are today uncompetitive with newly constructed renewable power plants (from my Environmental Economics class notes yesterday, among
other sources). Also, of the twenty private or investor-owned utillties generating the most electricity in the US, BH ranks in the worse half for CO₂, SO₂ NOx emitted per KWh (per MJ Bradley's latest
air emission benchmark report).
2022 YTD Damage Time to pick up on this update. 2 views of major indexes,
1st YTD (shows Nasdaq Comp down -20.
16%), 2nd from
11/22/2
1 that was Nasdaq high and from there it is now down -2
1.22%, in a bear market and below 3/
14/22 low.
Indexes YTD
https://stockcharts.com/h-perf/ui?s=$SPX&compare=$COMPQ,$INDU,$TRAN,IWM&id=p42765942979Indexes from
11/22/2
1,
https://stockcharts.com/h-perf/ui?s=$SPX&compare=$COMPQ,$INDU,$TRAN,IWM&id=p49535142330
