Board 8 > Stock Topic 6

(+) Yeah! (+)

My stocks closed at +9.82% for the day. By dollar amount it was my best day trading as some larger percentage gains were done with smaller amounts of money. HTZ was my only stock in the red today (I bought it fairly close to today's high). Made back all of yesterday's losses and a bit more. Still down about $600 for the week, but we were due for a pullback after how much the market gained since mid-May.

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Nice man. We will see what happens next week.

Looks like the judge approved the Hertz request to issue shares. Pumped for Monday. Volume today was 267 million which is more than the amount of shares being issued. They hired Jefferies Financial Group to handle the actual sale of the new shares on the market and are paying them a 3% commission for it so hopefully they will bring some trading expertise to it and the new shares will be released gradually, in an efficient way, rather than dumped onto the market all at once.

I think the people complaining about share dilution don't understand the situation. 100% of 0 is 0. 40% of 0 is still 0. 40% of a positive number is higher than 0. Now it all comes down to the market coming through with the funds.

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Looks like HTZ fell off a cliff after hours I guess the bankruptcy hearing didn't go well?

Edit: Oh, I didn't see this page.

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This has serious potential to make history. If this actually works and they can cancel the bankruptcy, every bankrupt publicly traded company in the future is going to be thinking about trying this manuever.

Looks like they recovered almost all of the after-hours loss already. That's good. As I said last page, I think this is a heavily path-dependent system. The company only has value if the market believes it does. If the share price isn't high enough to escape BK (I don't know what the number is), it should go to zero.

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https://www.ft.com/content/b5cd8a1d-7f76-4603-9310-b7b2a4a23cfb?shareType=nongift

Hi-larious

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Not subscribed

Oh, my bad, hopefully this CNBC link isn't paywalled:

https://www.cnbc.com/2020/06/12/hertz-granted-approval-to-sell-up-to-1-billion-in-shares.html


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I dont understand any of this. From how a bankrupt company can do as well as Hertz has the past few weeks, to how they can get approved for $1,000,000,000 for shares...

Moonroof posted...

I dont understand any of this. From how a bankrupt company can do as well as Hertz has the past few weeks, to how they can get approved for $1,000,000,000 for shares...

They haven't been approved for it. They're going to try to sell 246 million shares on the market. How much they get will depend on what people are willing to pay. The court just said they can go ahead and try.

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https://twitter.com/SMTuffy/status/1271553527152889857

If Hertz can pull it off, we may see other near-bankrupt companies try to run the same playbook

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Shadow Dino posted...

https://twitter.com/SMTuffy/status/1271553527152889857

If Hertz can pull it off, we may see other near-bankrupt companies try to run the same playbook

Let's go TLRD!

Futures down 300 points so far.

Ready to lose money bros

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I'm just going with the flow. If we have some green days, great! If we have some red days, I'm keeping my eyes peeled for a dip on TA... should have done that around the beginning of the pandemic, but hey, better late than never. >_>

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Looking to be a pretty grim day tomorrow gents. Markets are getting real skittish at the recent surge of coronavirus cases.

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Hertz...yikes

With short selling you borrow stock now and sell it. Then you must buy it back later so that it can be returned. You are betting the price will go down. The problem with short selling is that your potential gain is limited to 100% of the share price per share you are selling at, while your potential loss is unlimited. You can only short sell on margin, because by entering into a trade with potential infinite loss you are opening yourself up to losses beyond 100%. If the stock rises beyond your brokerage's margin tolerance they will close your trade by buying the stock back at market price and you sustain a big loss.

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Damn. I can see people being good at that but Im staying away.

So here's a burning hot take that might backfire for me: I am NOT selling my position of TLRD at $1.42 a share.

Pray for me.

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TLRD getting massacred today. Also not selling. But look at Hertz making a move! Up 20% since open.

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Interesting. Are you going to buy more at the reduced price then?

I think 13000 shares is enough.

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No, I'm not feeling a lot of confidence in this (Hertz) anymore. I said on Friday that I felt it was a very weird situation where the stock has to be high enough for them to raise enough money to get out of bankruptcy for it to be valuable. Cheaper doesn't mean a bargain here.

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I reckon.

Im down a lot in AAL but Im content holding that for however long it takes to get back up to at least $20. Looking like itll take longer than expected.

Hmm volume on HTZ is lower than on Friday. I guess that probably means Jefferies hasn't started selling the new shares yet.

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I have a feeling the market recovers for a gain today.

I'm treading water. My RCL calls I sold are losing value faster than my puts. Which is partially offsetting my losing positions in MGM and DAL

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Getting tempted to sell my TLRD but I will stand in solidarity with Chris who has an even worse position than me somehow. I'm gonna like the way this stock looks, he guarantees it.

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I can afford to be patient with the suits stock

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Shadow Dino posted...

I can afford to be patient with the suits stock

^^

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Annnnd turned the corner for the day. Up now

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AVCT getting bloody murdered. HPR nowhere near back in the green either. Chris, where you standing on HPR?

Too many shares involved in both of those and TLRD so once again unable to do anything. Not that I would want to in this market.

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StartTheMachine posted...

AVCT getting bloody murdered. HPR nowhere near back in the green either. Chris, where you standing on HPR?

Too many shares involved in both of those and TLRD so once again unable to do anything. Not that I would want to in this market.

Holding but those are long positions

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Strangely despite holding a lot of TLRD and AVCT I'm about even today.

Go my ATHX. We're gonna become millionaires together with this stock. Stem cells will cure the world.

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Bailed out of Hertz at $2.23. I lost exactly $100; I think it was worth a try and worth being part of one of the most exciting trades ever. I don't like either the price direction or the volume today. We are not even at 80 million shares traded today and it's already lunchtime on the East Coast. We did about 280 million shares on Friday. I suspect that very few shares from the new offering have been sold so far.

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DoomTheGyarados posted...

Holding but those are long positions

If you're not worried then I feel better, I just hope neither of these are too long. Planning on getting a new place at the beginning of next month when I take a vacation. But hey, it's my fault for getting so many shares of both!

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StartTheMachine posted...

If you're not worried then I feel better, I just hope neither of these are too long. Planning on getting a new place at the beginning of next month when I take a vacation. But hey, it's my fault for getting so many shares of both!

Long for me means 10+ months btw. I would describe that as relatively short.

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The market has recovered most of its losses for today. TLRD now accounts for most of my losses for today.


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DAL now up for the day! (AAL is too). Rally on! This one matters for me because DAL is currently 44% of my portfolio.

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I do regret buying as much TLRD as I did. I didn't realize how bad management is. What kind of board has the company swallow a poison pill* in the middle of a pandemic when all their stores are closed and they are burning through millions of dollars per day? I suppose at this point, the price is so low that bankruptcy has already been priced in, so might as well hold.

*A poison pill is a legal device to stave off a hostile takeover from an outside investor buying up enough shares to gain control of the company. But that's exactly what we want as shareholders, because that would cause the stock price to soar!

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Oh baby stonks are roaring back up. Good call by Moonroof!

Also, lololol Hertz: https://www.cnbc.com/2020/06/15/hertz-says-it-expects-stockholders-to-lose-all-their-money-in-filing-for-selling-more-stock.html

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Market not moving at all is great for me

#ThetaGang


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Yeah I just had a feeling. Too bad I didnt buy anything this AM.

https://www.cnbc.com/2020/06/15/the-fed-says-it-is-going-to-start-buying-individual-corporate-bonds.html

Hey now!

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HTZ is crashing hard now. Just plunged below $1.90.

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Yeah this HTZ thing is bizarre.

Best case scenario shares are worth less because new shares are issued.

Worst case they go bankrupt.

LETS HOP ON BOARD!

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Volume went a lot higher during that plunge from $2.10 to $1.85. My guess is Jefferies started selling large blocks of the new shares. I would really love to see an announcement after close today regarding how many shares they sold today and what their average price was. Jefferies is getting 3% of the proceeds so it's in their interest to get as high a price as they can.

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https://www.federalreserve.gov/newsevents/pressreleases/files/monetary20200615a1.pdf

The Fed released details about its plan to buy up to $750 billion in corporate bonds. Looks good for the bull market!

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@masterplum

i bought some shitty fatman suits ($TLRD) call today at 0.2x100 (20 whole bucks)

What should I do, it expires 7/19!

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