GPRO/Rustle – They only have 125M shares and 20% institutions and insiders leaves 100M shares for the public and GPRO has sold about 10M cameras to people who can afford $400 to stick a camera on their head so all you need is for those same idiots to buy $800 worth of their stock (10 shares) each and it's sold out. That is now the perfect formula for a public company – sell stock in something that top 10%'ers like and they'll buy your stock along with the product and overvalue you like crazy.
Same with TSLA – it's totally controlled by institutions and insiders and the 60,000 people who've bought their cars pick up 10 shares just to stick in the garage ($2,500) and that's a lot as they also have a very low float (under 100M) with barely 20M shares available to the general public.
LOL Yodi – Couldn't agree more. Had I read your comment first, it would have saved me time above!
Dollar holding strong so far – no love given to copper.
You're welcome Newt and we have a Webinar today at 1pm.
TSLA/Rustle – The attempts at manipulation would be funny if it wasn't so evil.
Lines/Burr – They are Pivot Points and I use 3-day, 5 minute for the most part.
ABX/StJ – Yay!!!!
ABX can still be played by selling the 2017 $13 puts for $3 and buying the 2017 $10/20 bull call spread for $3.20 for net 0.20 on the $10 spread that's $3 in the money to start. 10 of those costs $200 in cash and less than $3K in ordinary margin and pays $10,000 if ABX makes $20 (up 5,000%) and your worst case is owning 1,000 ABX at net $13.20.
If you are margin-challenged, just the spread for $3.20 is a good way to pay too as you get all of the upside to $20 with $6.80 potential upside (200%) vs the $3.20 risk.
ROFL – Look at /TF making a round trip from 1,168 to 1,176 and back in less than an hour!
BHI/Burr – You get $19 in cash (per current proposal) and 1.12 shares of HAL (now $50) so net $19+$56 = $75. That BHI play from yesterday is still available, so I'll post it again as it's a good one:
I'm trying to figure out the BHI deal with HAL. HAL is offering $19Bn in cash and 1.12 shares of HAL for BHI which was, in theory $36Bn. BHI is trading at $66, which is $28Bn, so way under the offer but the key is determining what the combined entity is really worth.
That huge pop was to $36Bn ($75ish) but clearly people don't like the deal. HAL took a bath too.
BHI 2017 $55 puts can be sold for $4.50 and that's net $50.50, which is right around the cash part of the offer from HAL. Also interesting is the 2017 $57.50/70 bull call spread at $6 on the $12.50 spread, which will pay off way early if the deal goes through.
Another thing I like is the $3.5Bn breakup fee so, even if the deal fails – BHI gets a nice chunk of change.
IBM/Albo – Not surprising: They went on sale so he bought them – that's what I keep saying you need to do when you are a long-term value investor.
CLF $10!
Oil failed $75, just bounced off $74.50.
