A the boutique will be trading minuscule number of shares per day for long time probably months or years and then earning acceleration happens, suddenly liquidity will surge in and the liquidity will persist for weeks or months or years. The essence of value investing is that at the right price, any company (including a Chinese company with opaque financials and non-existent corporate governance) can be a good investment and it is possible that the drop in stock prices in the last few months has made Chinese stocks attractive enough for the rest of us. Both indices are forming possible inverse head and shoulders formations which may resolve bullishly. While they have the cash and perhaps may even have the interest, Musk’s follow up that he would continue to run the company and hold on to his ownership stake strikes me as a poison pill that no corporation will want to swallow. Even the biggest private equity and venture capital investors, generally more willing to hold concentrated positions, will be hard pressed to put this much capital, for the same reasons. Dads took on more childcare when they worked from home during COVID-19. Covid-19. The only keyword that determines market movements these days as investors sold down stocks globally as markets started to price in the risk of a global recession as the virus continues to spread further beyond Asia.
This way, potential investors may explore how the stock market works without having to spend thousands of dollars. Given Musk’s history of impetuous and personal tweets, that premise might be completely wrong, in which case the explanation for this episode may be far simpler and rooted in the war with short sellers that Musk has been fighting for a while. If the statement is false, we will be seeing lawyers debating the meaning of the words “secured” and “funding” for a while. As a publicly traded company with a market capitalization of $103 billion, making a $55-60 billion additional investment in Tesla would be a reach, but Softbank is capable of drawing other investors of its ilk into the funding. They have a history with Tesla: There were rumors last year that Tesla and Softbank had talked about taking the company private, but control disagreements caused negotiations to break down. They have and are invested in young, growth companies: Unlike traditional PE investors whose focus has been on doing leveraged deals of cash-rich companies, Softbank has invested successfully in growth companies, many of whom continue to burn through cash.