Money & Economics
- Thread starter bigredfish
- Start date
Rut Ro... MSM is beginnig to turn on them and ask legitimate real questions.... Team trump doesn't do well with real legitimate questions...
DING! DING! DING!
We have a Winner!
(now where are those idiots that lectured me on why .Gov buying private companies (socilaism) was a GOOD thing?)
We have a Winner!
(now where are those idiots that lectured me on why .Gov buying private companies (socilaism) was a GOOD thing?)
FYI
If you are heavy into the market and using Margin, expect a margin call from your broker soon...
Happy Friday!
If you are heavy into the market and using Margin, expect a margin call from your broker soon...
Happy Friday!
Watch the #SPCX IPO... nobody in their right mind thinks its real.
Here's my assessment of what's going on inside Goldman and Morgan Stanley right about now around the $SPCX IPO.
1) The math isn't mathing for institutional investors to participate at $135/sh in the size they need them to. Research is being heavily pressured by banking to get more aggressive on their estimates/teach-in materials to try to make valuation make sense. It's not working. The biggest brass across the firms are now getting involved - Jamie Dimon & David Solomon are taking meetings - it's all hands on deck.
2) Accordingly, the bookrunners are increasing the % of the deal allocated to retail to 30%. Remember, it's the banks buying the shares from the company and if their largest institutional relationships aren't biting in the size they need them to - they have to find demand somewhere else they're going to be on the hook for the delta between $135/sh and wherever the stock trades multiplied by the number of shares left in inventory. Find the demand - whoever and whatever it takes.
3) Banks are also pressuring the index providers to create forced buying as well across a ton of indices and their associated products. This has worked in some places and hasn't in others (credit to S&P for their backbone here). This will create a large amount of demand but I don't know the math here relative to the float coming public - if anyone has seen smart math here please share.
All and all, this is going to be a fascinating IPO to watch but I have next to zero interest in participating - I suspect I'm in the majority here.
Here's my assessment of what's going on inside Goldman and Morgan Stanley right about now around the $SPCX IPO.
1) The math isn't mathing for institutional investors to participate at $135/sh in the size they need them to. Research is being heavily pressured by banking to get more aggressive on their estimates/teach-in materials to try to make valuation make sense. It's not working. The biggest brass across the firms are now getting involved - Jamie Dimon & David Solomon are taking meetings - it's all hands on deck.
2) Accordingly, the bookrunners are increasing the % of the deal allocated to retail to 30%. Remember, it's the banks buying the shares from the company and if their largest institutional relationships aren't biting in the size they need them to - they have to find demand somewhere else they're going to be on the hook for the delta between $135/sh and wherever the stock trades multiplied by the number of shares left in inventory. Find the demand - whoever and whatever it takes.
3) Banks are also pressuring the index providers to create forced buying as well across a ton of indices and their associated products. This has worked in some places and hasn't in others (credit to S&P for their backbone here). This will create a large amount of demand but I don't know the math here relative to the float coming public - if anyone has seen smart math here please share.
All and all, this is going to be a fascinating IPO to watch but I have next to zero interest in participating - I suspect I'm in the majority here.