All things STOCKS

[Firebirdparts]

How is this even possible. I own stock in the company so by definition, wouldn't that make it a publicly traded company?

Depends on where you got it. If you got it from your stockbroker, then maybe so.

 

[Velo Vol]

Now green following the CPI report. Go figure.

 

[OldandStillaVol]

How is this even possible. I own stock in the company so by definition, wouldn't that make it a publicly traded company?

I always thought that large private companies (e.g. SAS, Publix) still issue stock but as stipulated by the company, it can’t be sold on open market. It can be sold back to the company at a price determined by the company.

I was once asked to be a consultant to a small biotech startup and they wanted to compensate me in terms of stock. I decided to decline their offer.

 

[Thunder Good-Oil]

How is this even possible. I own stock in the company so by definition, wouldn't that make it a publicly traded company?

A public stock is publicly traded. They have to jump through regulatory hoops with the SEC before the shares of stock can be offered for sale to the public. You can always sell your stock privately.

SC Johnson, Mars (candy), Cargill, Publix, Koch, and Fidelity Investments are large, well known privately owned companies that all have shares of stock owned by somebody. Pilot Travel was a huge privately owned company. It is still “private” but most of the shares of stock are now owned by Berkshire Hathaway.

Going “public” is often an option that company leadership will use as an exit strategy for the company owners.

Private Equity companies do the opposite (initially). They will buy up shares of stock in public companies and eventually take them private. Then they will often reconfigure the company (strip out cash, sell debt, sell off assets, fire employees) and take them public.

Most companies are private rather than public and they all have shares of stock or partnership agreements to establish ownership percentages.

 

[Thunder Good-Oil]

Sometimes large, private companies’ financials are well known as they might have sold bonds to the public but not their stock equity and their financial statements are audited and published.

Learn about Private Companies

What Is a Public Company?

Private Equity Definition

What Is Venture Capital?

Private Equity & Venture Cap

Accredited Investor Definition

 

[Thunder Good-Oil]

IMO you'll see it hit $175 by Wednesday.

It was close. Today MSTR dropped 5% ($182) and has rallied to $203 (about +5%). $186.75 open after yesterday’s close of $192.52.

 

[Thunder Good-Oil]

MSTR closed at $195.55 (+1.57%).

I don’t know of an ideal symbol to use to track Bitcoin and compare to MSTR. BTC doesn’t trade the same hours as the M-F, 9:30-4:00 NYSE and NASDAQ sessions.

Maybe:
BTF $7.55 (+1.61%) Valkyrie Bitcoin Strategy ETF
- or -
GBTC $12.41 (+1.64%) Grayscale Bitcoin Trust

 

[Velo Vol]

 

[Firebirdparts]

Casual Friday will never be the same

 

[Velo Vol]

 

[Rocky_Top_Vol13]

 

[Velo Vol]

How much potential upside is left in this rally?

 

[Thunder Good-Oil]

How much potential upside is left in this rally?

Far more in specific names rather than the large cap dominated averages. There had been some crazy, rapid pull backs in lots of widely followed names. The expected purge coming with the November mid-term elections provides a pretty solid base. The cost of oil is a huge variable as it affects the price of nearly everything which filters down to company profits.

Fixing the supply chain snags will be a longer term issue and opportunity. Lots of manufacturing infrastructure build outs should be coming. But the suppliers face headwinds with high labor and materials costs.

 

[Firebirdparts]

How much potential upside is left in this rally?

Yee ha corporate welfare. If this chip bill fails, be prepared to give it all back. I could certainly be wrong.

 

[Velo Vol]

Far more in specific names rather than the large cap dominated averages. There had been some crazy, rapid pull backs in lots of widely followed names. The expected purge coming with the November mid-term elections provides a pretty solid base. The cost of oil is a huge variable as it affects the price of nearly everything which filters down to company profits.

Fixing the supply chain snags will be a longer term issue and opportunity. Lots of manufacturing infrastructure build outs should be coming. But the suppliers face headwinds with high labor and materials costs.

Too macro. I'm talking about a short-term trading rally, which may be based on nothing more than the fact that there's more buying than selling right now.

I mean, the financial sector is up almost 7% in the last week and their earnings were pretty terrible.

Yee ha corporate welfare. If this chip bill fails, be prepared to give it all back. I could certainly be wrong.

All of them? Even companies that have nothing to do with Silicon Valley?

 

[Thunder Good-Oil]

MSTR has zoomed from under $200 to nearly $300. In just 2-3 weeks. BTC is up maybe 20% and MicroStrategy pops more than 2x as much. It’s acting like a levered Bitcoin security. Even at $290ish it’s still way off of the 52 week high. It could be in Wall Street Bets cross hairs.

 

[Carp]

Steel prices expected to drop even further starting next month. How does that affect the broader market?

 

[05_never_again]

MSTR has zoomed from under $200 to nearly $300. In just 2-3 weeks. BTC is up maybe 20% and MicroStrategy pops more than 2x as much. It’s acting like a levered Bitcoin security. Even at $290ish it’s still way off of the 52 week high. It could be in Wall Street Bets cross hairs.

Well, I mean the company itself basically is a leveraged bet on the price of bitcoin, given how much Saylor bought and how much he borrowed to do it.

 

[Thunder Good-Oil]

Well, I mean the company itself basically is a leveraged bet on the price of bitcoin, given how much Saylor bought and how much he borrowed to do it.

The software business has enough earnings to manage the LT debt exposure.

 

[BigOrangeMojo]

Yee ha corporate welfare. If this chip bill fails, be prepared to give it all back. I could certainly be wrong.

It's the "Intel is so far behind its competitors so we need to give them a handout" bill....

 

[Firebirdparts]

Steel prices expected to drop even further starting next month. How does that affect the broader market?

I think it doesn't affect much. It's a result, and in fact it's a result of events in China. china produces and consumes over half the world's steel

 

[mrorange211]

It's hard to underestimate the importance of this week for the markets. This week will make or break the markets until September. I expect 3500 or lower sometime in August.

 

[Velo Vol]

It's hard to underestimate the importance of this week for the markets. This week will make or break the markets until September. I expect 3500 or lower sometime in August.

Citing technical analysis? Watching order flow? Both?

If the S&P is still above the 50 day m.a. next week, that can't be ignored.

 

[tbh]

Interesting news from MMM today. Apparently they're planning to spin off their healthcare business; hopefully that will ultimately be a good thing in the long run.

Per the article:

"Shareholders of 3M will receive shares in the new company. The health business lines had sales of about $8.6 billion in 2021, the company said. The company will include 3M’s products for wound care, oral care, healthcare information technology and biopharma filtration, 3M said.

3M, based in St. Paul, Minn., expects to retain a 19.9% stake in the new company and said the stake will be monetized over time. The company expects to complete the spinoff by the end of 2023."

3M news - WSJ

 

[Velo Vol]