this thread is for posting matt levine quotes in

JPMorgan made money that it did not, you would have to say, "deserve" to make

Probably what *this* should be called.
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Re: this thread is for posting matt levine quotes in

Post by Rylinks » Mon Apr 04, 2022 6:01 pm

other than *maybe* Jack Dorsey, I think Musk would clearly be the first true *poster* on Twitter’s board

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Re: this thread is for posting matt levine quotes in

Post by Rylinks » Tue Apr 05, 2022 5:57 pm

the SEC’s Elon Musk Division is going to be annoyed

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Re: this thread is for posting matt levine quotes in

Post by Dantes » Tue Apr 05, 2022 6:21 pm

Rylinks wrote: Tue Apr 05, 2022 5:57 pm the SEC’s Elon Musk Division is going to be annoyed
:rofl:
Pour like Hemingway's last call.

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Re: this thread is for posting matt levine quotes in

Post by Doug » Tue Apr 05, 2022 6:26 pm

rofl
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Re: this thread is for posting matt levine quotes in

Post by Ashenai » Mon Apr 11, 2022 6:38 pm

The important things in modern corporate finance are unhinged tweeting, public association with Elon Musk and vague plans to accept Dogecoin for goods and services.

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Re: this thread is for posting matt levine quotes in

Post by Skeletor » Thu Apr 14, 2022 3:04 pm

matt levine said elon musk probably won't buy more twitter then took the rest of the week off for spring break and elon musk immediately tried to buy all of twitter

that means it's up to you folks to tell me how this works

does the board get to accept the offer on behalf of shareholders? that doesn't sound right

or the board has to accept and then have a shareholder vote? i guess that's gotta be right. if so does musk get to vote
wow, [you]. that all sounds terrible. i hope it gets better for you

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Re: this thread is for posting matt levine quotes in

Post by Ashenai » Thu Apr 14, 2022 3:39 pm

Skeletor wrote: Thu Apr 14, 2022 3:04 pm matt levine said elon musk probably won't buy more twitter then took the rest of the week off for spring break and elon musk immediately tried to buy all of twitter

that means it's up to you folks to tell me how this works
After extensive research (googling both "how to buy twitter" and "can elon musk buy twitter"), I can safely say that I don't really know. Hope this helps!

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Re: this thread is for posting matt levine quotes in

Post by Doug » Thu Apr 14, 2022 3:44 pm

If the board can approve or disapprove the sale, that seems to imply that the board members are the ones with the shares. But that doesn't prove that that's what that means

EDIT: As more people write about this, apparently there's a shareholder agreement under which the board can indeed sell people's shares if the offer is above some threshold (which it is). But it's still a little unclear
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Re: this thread is for posting matt levine quotes in

Post by Skeletor » Thu Apr 14, 2022 5:07 pm

Doug wrote: Thu Apr 14, 2022 3:44 pm If the board can approve or disapprove the sale, that seems to imply that the board members are the ones with the shares. But that doesn't prove that that's what that means
yeah i really expect the shareholders have to vote if the board approves it

i guess there's no way musk gets to vote if that's the case though. like if you own 51% you can't just vote to own 100% instead. this isn't bitcoin
wow, [you]. that all sounds terrible. i hope it gets better for you

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Re: this thread is for posting matt levine quotes in

Post by Rylinks » Fri Apr 15, 2022 1:22 am

Here’s a schematic description of how modern distressed-debt investing works[1]:
  1. A company borrows $1 billion, in a syndicated loan or a bond issue, from a bunch of different investors.
  2. As is customary, the loan agreement or bond indenture says “this agreement may be amended by a majority of the investors.”[2]
  3. Time passes and the company runs into some trouble.
  4. The company goes out to 51% of the investors — holders of $510 million of the bond or loan — and says: “Psst. We will pay you back 110 cents on the dollar — $561 million total — if you agree to let us stiff the other guys.”
  5. So the 51% holders vote to amend the agreement to say “these holders will get 110 cents on the dollar, and the other holders will get zero.”
  6. The other 49% are really mad and surprised.
  7. The amendment works, 51% of the holders make a nice profit, 49% of the holders lose all their money, and the company pockets the extra $439 million.
Now of course I am kidding, and you can’t actually do this. But it would be cool if you could (for the company, and the 51% creditors). And it is a good model to keep in mind, because modern distressed investing often works by getting as close as possible to this.

[1] We have talked about this schematic model before, when Serta Simmons Bedding LLC did a trade like this.

[2] As is common but not quite technically accurate, when I say “a majority of creditors” I mean “creditors holding a majority of the principal amount of the loan or bond issue.”

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Re: this thread is for posting matt levine quotes in

Post by Skeletor » Fri Apr 15, 2022 2:26 am

3C4E0506-2BEB-4034-A5F6-63EF88B4384D.jpeg
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wow, [you]. that all sounds terrible. i hope it gets better for you

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Re: this thread is for posting matt levine quotes in

Post by Skeletor » Fri Apr 15, 2022 2:27 am

i like the little blip where Elon Musk is only in the subheader
wow, [you]. that all sounds terrible. i hope it gets better for you

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Re: this thread is for posting matt levine quotes in

Post by Blissful » Fri Apr 15, 2022 11:23 am

Skeletor wrote: Fri Apr 15, 2022 2:27 am i like the little blip where Elon Musk is only in the subheader
checking the muskometer for the day
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Re: this thread is for posting matt levine quotes in

Post by Ashenai » Fri Apr 15, 2022 1:47 pm

Still I imagine that Twitter's bankers at Goldman Sachs will sit down with Musk's bankers at Morgan Stanley and Goldman will say “so uh where's the financing coming from” and Morgan Stanley will say “oh the financing is in this can” and hand Goldman a can and Goldman will open the can and a bunch of fake snakes will pop out. “AAAHHH,” Goldman will scream, and then they will chuckle and say “oh Elon, you got us again” and everyone will have a good laugh.

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Re: this thread is for posting matt levine quotes in

Post by Doug » Fri Apr 15, 2022 1:55 pm

What would be wrong with that
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Re: this thread is for posting matt levine quotes in

Post by Blissful » Sat Apr 16, 2022 4:46 am

Doug wrote: Fri Apr 15, 2022 1:55 pm What would be wrong with that
They forgot to have someone record it
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Re: this thread is for posting matt levine quotes in

Post by Doug » Sat Apr 16, 2022 5:06 am

Blissful wrote: Sat Apr 16, 2022 4:46 am
Doug wrote: Fri Apr 15, 2022 1:55 pm What would be wrong with that
They forgot to have someone record it
That happens so often
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Re: this thread is for posting matt levine quotes in

Post by Blissful » Tue Apr 19, 2022 9:42 am

fyi twitter's poison pill has an exercise price of $210, allowing each shareholder to pay $210 to acquire stock "having a then-current market value of twice the Exercise Price." 2 x $210 is $420. https://www.sec.gov/ix?doc=/Archives/ed ... 740d8k.htm
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Re: this thread is for posting matt levine quotes in

Post by Luna » Tue Apr 19, 2022 9:58 am


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Re: this thread is for posting matt levine quotes in

Post by Dantes » Tue Apr 19, 2022 12:31 pm

Blissful wrote: Tue Apr 19, 2022 9:42 am
fyi twitter's poison pill has an exercise price of $210, allowing each shareholder to pay $210 to acquire stock "having a then-current market value of twice the Exercise Price." 2 x $210 is $420. https://www.sec.gov/ix?doc=/Archives/ed ... 740d8k.htm
I don't understand that. What is the exercise price and why is it $210? My understanding is that a poison pill works by allowing existing stockholders to buy additional shares at a devalued price which serves to dilute the value of individual shares and functionally guts the stock's price.
Pour like Hemingway's last call.

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Re: this thread is for posting matt levine quotes in

Post by Skeletor » Tue Apr 19, 2022 7:20 pm

Dantes wrote: Tue Apr 19, 2022 12:31 pm
Blissful wrote: Tue Apr 19, 2022 9:42 am
fyi twitter's poison pill has an exercise price of $210, allowing each shareholder to pay $210 to acquire stock "having a then-current market value of twice the Exercise Price." 2 x $210 is $420. https://www.sec.gov/ix?doc=/Archives/ed ... 740d8k.htm
I don't understand that. What is the exercise price and why is it $210? My understanding is that a poison pill works by allowing existing stockholders to buy additional shares at a devalued price which serves to dilute the value of individual shares and functionally guts the stock's price.
matt levine's explanation is: the matters don't number as long as it allows everyone to get discounted stock because the whole thing is designed to never actually get triggered. so they made up a number: you pay $210 to get $420 in stock, countering musk's weed joke with another weed joke
wow, [you]. that all sounds terrible. i hope it gets better for you

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Re: this thread is for posting matt levine quotes in

Post by Khaos » Tue Apr 19, 2022 7:36 pm

Skeletor wrote:the matters don't number
and made up is everything

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Re: this thread is for posting matt levine quotes in

Post by Doug » Tue Apr 19, 2022 7:46 pm

Khaos wrote: Tue Apr 19, 2022 7:36 pm
Skeletor wrote:the matters don't number
and made up is everything
and easy is nothing
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Re: this thread is for posting matt levine quotes in

Post by Skeletor » Sat May 07, 2022 2:32 pm

When a Brazilian company’s dam in Brazil collapses and kills 270 Brazilians, the SEC will step in to protect American shareholders.
wow, [you]. that all sounds terrible. i hope it gets better for you

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Re: this thread is for posting matt levine quotes in

Post by Rylinks » Wed May 11, 2022 6:01 pm

All of this is, I think, quite straightforward and correct, except for Point 7, which is insane.

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Re: this thread is for posting matt levine quotes in

Post by Rylinks » Thu May 19, 2022 6:03 pm

yesterday [Elon Musk] tweeted “[face with tongue emoji][popcorn emoji],” which might be deal-related, who knows. I guess we’ll see if his lawyers file that tweet with the SEC. If they do, you know it was a material communication about the deal.

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Re: this thread is for posting matt levine quotes in

Post by Rylinks » Mon May 23, 2022 6:26 pm

Back in 2019 I proposed the Money Stuff S&P ESG Fund, “a mutual fund whose stated mission would be to invest in the 500 companies in the S&P 500 index with the best environmental, social and governance ratings judged by my proprietary rating system.”

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Re: this thread is for posting matt levine quotes in

Post by pterrus » Mon May 23, 2022 6:43 pm

I am ashamed to admit I did not get the joke the first time I read that sentence.

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Re: this thread is for posting matt levine quotes in

Post by Crunchums » Mon May 23, 2022 7:15 pm

it took me a while to get the joke because if you replace "in the 500 companies" with "in the companies" then that seems like an actually reasonable idea
u gotta skate

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Re: this thread is for posting matt levine quotes in

Post by Blissful » Tue May 24, 2022 1:38 pm

Rylinks wrote: Mon May 23, 2022 6:26 pm Back in 2019 I proposed the Money Stuff S&P ESG Fund, “a mutual fund whose stated mission would be to invest in the 500 companies in the S&P 500 index with the best environmental, social and governance ratings judged by my proprietary rating system.”
lol

good
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