All things STOCKS

#8,377
#8,377
mrorange211 said:
USITC Today's drop in MOS is a gift, imo.

Chamath Palihapitiya is involved, and it will take SOFI investing public. I don't likevvery speculative investments (CCIV, for example), but I think Chamath Palihapitiya is the next titan of finance. So I bought 100 shares for the LT.
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I don't think CLOV has anything to do with the Sofi deal outside of Chamath facilitating each through a spac, but the deals are independent of each other. Chamath has several spacs lined up. He made a deal with CLOV through his IPOC spac. Sofi is going public via his IPOE spac.
 
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#8,378
#8,378
TheColdVolTruth said:
I don't think CLOV has anything to do with the Sofi deal outside of Chamath facilitating each through a spac, but the deals are independent of each other. Chamath has several spacs lined up. He made a deal with CLOV through his IPOC spac. Sofi is going public via his IPOE spac.
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How exactly does Chamath (or any SPAC person) make money off the SPAC? Does he just charge a management fee for putting it together?
 
#8,379
#8,379
05_never_again said:
How exactly does Chamath (or any SPAC person) make money off the SPAC? Does he just charge a management fee for putting it together?
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The sponsor typically gets equity (a pretty substantial amount like 15-20%) awarded for a comparatively small (3-4%) purchase of warrants. They turn into a hype man to pitch the deal as the next high flyer to run up the price and then can unload their shares and make obscene profits. There are some pretty predictable binary events that create some volatility that seem to present some nice trading opportunities, but as an investment it seems like simply an endorsement of the sponsor to make a good deal.
 
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#8,380
#8,380
TheColdVolTruth said:
The sponsor typically gets equity (a pretty substantial amount like 15-20%) awarded for a comparatively small (3-4%) purchase of warrants. They turn into a hype man to pitch the deal as the next high flyer to run up the price and then can unload their shares and make obscene profits. There are some pretty predictable binary events that create some volatility that seem to present some nice trading opportunities, but as an investment it seems like simply an endorsement of the sponsor to make a good deal.
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So they need the SPAC to perform well, at least initially, in order to make money? I figured they had it schemed up where the thing could s**t the bed from the outset, but they'd still get paid.
 
#8,382
#8,382
05_never_again said:
So they need the SPAC to perform well, at least initially, in order to make money? I figured they had it schemed up where the thing could s**t the bed from the outset, but they'd still get paid.
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It doesn't necessarily have to do well for the sponsor to make money. They purchase warrants for a 3-4% investment and get awarded 20% equity. On a $500M deal, they put $20M (4%) in for their portion of the investment. They get awarded 20% equity worth $100M after the deal. They make 500% on their investment if the company trades flat. That's my understanding anyway, but I may be wrong on this. I looked into it last year out of curiosity about the compensation for sponsors. I'm sure each deal or sponsor has a different structure, but this seemed to be an underlying theme.
 
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#8,383
#8,383
TheColdVolTruth said:
It doesn't necessarily have to do well for the sponsor to make money. They purchase warrants for a 3-4% investment and get awarded 20% equity. On a $500M deal, they put $20M (4%) in for their portion of the investment. They get awarded 20% equity worth $100M after the deal. They make 500% on their investment if the company trades flat. That's my understanding anyway, but I may be wrong on this. I looked into it last year out of curiosity about the compensation for sponsors. I'm sure each deal or sponsor has a different structure, but this seemed to be an underlying theme.
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Interesting. I've been curious for a while about how those guys are paid because the question isn't commonly asked, and when the SPAC guys are asked how they are compensated they get kind of cagey and evasive (like Chamath). And when somebody normally really outspoken and opinionated like Chamath doesn't want to talk about something it seems suspicious. In one CNBC interview in particular he ripped the traditional IPO process, said it ripped companies off and excessively enriches the banks who take the company public. Then when he was asked how he got paid, he didn't really want to talk about it.

I've got no problem with him or anyone else making money, but he seemed really sanctimonious about it and it rubbed me the wrong way.
 
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#8,389
#8,389
You guys buying the nuclear energy revolution? Might take a while, but with guys like Bill Gates saying it’s the only way to combat climate change, I have to think it presents a profitable opportunity right now.
 
#8,393
#8,393
I agree nuclear is the most reasonable way forward, but obviously there will be a lot of resistance.
 
#8,398
#8,398
Berkshire buying pilot travel centers...

I was skimming over Warren Buffets always-entertaining annual letter and he says he’s buying pilot. Maybe everybody knows that but me.
 
#8,399
#8,399
Firebirdparts said:
Berkshire buying pilot travel centers...

I was skimming over Warren Buffets always-entertaining annual letter and he says he’s buying pilot. Maybe everybody knows that but me.
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Buffett/Berkshire bought controlling interest several years ago. Recent news is probably just buying the rest that was already agreed to. The Haslam family is keeping the Pilot stores that are not truck stops in the Knoxville area. They are not the “travel centers”. “Pilot Markets” or something similar is what the family is keeping.
 
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