Tesla, TSLA & the Investment World: the Perpetual Investors' Roundtable

[jerry33]

My understanding is that the company is authorized a certain number of shares and cannot issue more than that without first filing with the SEC. The speculation then was that 10:1 either breached the allowed share count or would have gotten too close to it (e.g., interfere with a cap raise, Elon's benefits, whatever).

I've been meaning to look into that, but haven't quite gotten around to it yet. So

More importantly, if they go over the number of authorized shares (2 billion), there has to be a shareholder vote to do so. Below that, a split only requires Board of Directors approval.

 

[JusRelax]

Uh oh

IMO, it's a warning to anyone that is tempted to doubt Tesla again.

 

[LN1_Casey]

View attachment 578983

Jesus.

Is Grimes pregnant again?

 

[Nocturnal]

CNBC just now on Squawk alley. Jeff Richards from GG capital, basically said that despite owning 3 teslas and believing they are the best cars in the world, he was in the dumb club and didn't buy stock. Comparisons to Amazon and buying into biotech before products are really viable.

Host "maybe the relentless arguments from the short side over years really has kept narrative going and maybe ended in Tesla's benefit because they never came to pass". ha, yup. You got it. I wish I could save the video and share it. Doesn't seem to be on CNBC channel on Youtube.

 

[M|S|M MYP]

Consolidating at $2050 level before run up to $2100 before EOD? I took the liberty of taking the day off today as well.

 

[lafrisbee]

I'm no expert in the accounting of corporate shares but it's apparent to me you know even less. Because every single share has a serial number and there are a fixed amount of them. If you get an actual share certificate it will list the serial numbers. This means phantom shares cannot become 5 new phantom shares - they need actual issued shares to be attached to them.

This ant hopes you are correct. He sees how you could be, but he is just an ant... an ant with ever increasing antcoin due to tesla.

 

[Dancing Lemur]

Why wasn’t the stock split 10 or 20 to 1?

Rob Maurer and his magnificent beard said half facetiously (but also seriously) that they should have done a 69:1 because of all the free publicity something so silly would garner. He did acknowledge that would put the price a little uncomfortably close to the IPO price, but that was way back a week or two ago.

TSLA is definitely not getting added to the Dow without another split, though.

 

[M|S|M MYP]

CNBC just now on Squawk alley. Jeff Richards from GG capital, basically said that despite owning 3 teslas and believing they are the best cars in the world, he was in the dumb club and didn't buy stock. Comparisons to Amazon and buying into biotech before products are really viable.

Same mentality of people who thought 'AMZN just loses and bleeds $$, they'll never turn a profit..i'll never invest in their stock"....and 5 min later...goes on AMZN to buy something, and does it weekly and then daily and then has 100 subscribe and save items...etc.

 

[StealthP3D]

No, I don't. It doesn't matter to me. It'll happen when it happens. Not sure knowing what the effective date has to do with the larger concept of phantom shares in the system that now have to be dealt with, by those who created them.

I'm assuming it would be the date of record (today) but I don't know if they would have some leeway in getting around that and doing the last bit of covering next week while all the records are being compiled. The more I think about it, for the kind of scheme I outlined, they could probably continue to "make things whole" in the beginning of next week.

 

[scaesare]

So just a quick note that, although I am a much smaller and more recent fish in this TSLA investing pond than many of you, I'm happy to report I currently have an additional digit added to my porfolio value. Thanks for all the not advice up to this point

 

[Nuclear Fusion]

My understanding is that the company is authorized a certain number of shares and cannot issue more than that without first filing with the SEC. The speculation then was that 10:1 either breached the allowed share count or would have gotten too close to it (e.g., interfere with a cap raise, Elon's benefits, whatever).

I've been meaning to look into that, but haven't quite gotten around to it yet. So

Ta

 

[Tslynk67]

So, price action looks like capping and damage limitation from the Market Monkeys. Perusing the open interest we see the most volume on $2100, but as the dust settles, $2000 is off the menu - puts piling up there, $2050 is painful (for them), so capping in the $2050/50 range with a push-down to below $2050 seems the the best they can hope for.

Full disclosure - I bought some $2100's expiring today for fun, to make things a not more exciting.

 

[jerry33]

So just a quick note that, although I am a much smaller and more recent fish in this TSLA investing pond that the rest of you, I'm happy to report I currently have an additional digit added to my porfolio value. Thanks for all the not advice up to this point

Yes. It appears as if life without cat food is in the bag.

 

[mongo]

I'm no expert in the accounting of corporate shares but it's apparent to me you know even less. Because every single share has a serial number and there are a fixed amount of them. If you get an actual share certificate it will list the serial numbers. This means phantom shares cannot become 5 new phantom shares - they need actual issued shares to be attached to them. And that is the entire point of the date of record.

Real shares only need to exist when someone sells their shares or asks for a certificate. Until then it's all numbers in a database.
A person whose shares are lent out has no certificates, they only have a number in their trading app that says how many shares they own/ control. The broker lends shares from A to B and B sells to C. Either A or C can sell their 'shares' at any time, making them actual ones for a moment and the broker only hits up B for them if the pool of shares to lend dries up. If C also has a margin account, they might not even have 'real' shares for long.
Just like when you deposit cash in a bank, they do not have your serial numbered bills (or even the total amount on hand of all deposits). However, people can withdraw 'their'; money at any time.

Post event, each lent share becomes 5 lent shares. Each person's account showes 5x more shares, and the brokerage has 5x more real shares and 5x more lent shares to track. Nothing fundamentally changes.

 

[Boomer19]

I'm no expert in the accounting of corporate shares but it's apparent to me you know even less. Because every single share has a serial number and there are a fixed amount of them. If you get an actual share certificate it will list the serial numbers. This means phantom shares cannot become 5 new phantom shares - they need actual issued shares to be attached to them. And that is the entire point of the date of record.

not really how it works unless youre talking physical stock certs like @neroden used to.
electronic shares are tracked by clearinghouse (NSCC), depo (DTCC), and each participating entity

your unwarranted insult/snippiness will stand, while i get my posts deleted, fair enough. i was respectful to you, but putting me down doesnt make you any more correct, its not like im speigel over here, im not the enemy, and i doubt youd be that disrespectful to my face

 

[dww12]

Consolidating at $2050 level before run up to $2100 before EOD? I took the liberty of taking the day off today as well.

I see a daily wedge forming.

 

[dww12]

I see a daily wedge forming.

Oops. Too late, there it goes.

 

[bpjod]

Upon popular request: let's move on from talking about loaning money to our wives or relatives. And the way Rob Maurer dresses and shaves is not very relevant to this thread

I’ve been following the Investors Roundtable thread faithfully since 2017 when I finally started purchasing TSLA, and intermittently for a few years prior as I was contemplating TSLA. I come to learn and rarely post as I don’t have the experience and insights to offer that others do.

Since it’s a roundtable, there’s bound to be the odd diversion. I just want to let you know @Right_Said_Fred how much I appreciate your excellent sense of when to step in and gently steer things back on course. Your timing and style are impeccable. Thank you for that. I hope you can keep it up.

 

[StealthP3D]

Real shares only need to exist when someone sells their shares or asks for a certificate. Until then it's all numbers in a database.

My assumption is the split event causes all shares to be accounted for and the new shares to be assigned to specific existing shares. This is pretty basic accounting. Why would "real shares" need to exist when someone sells their shares but not when 4 new dividend shares are assigned to each existing share on a given date of record? That would make no sense.

On your other points, that the shares are generally not individually accounted for, I agree. It's all on the trust of the brokerage houses and market makers.

 

[StealthP3D]

Full disclosure - I bought some $2100's expiring today for fun, to make things a not more exciting.
View attachment 578991

Look at that! Your calls just doubled in value!

Edit: If you bought them when I think you did, now they've tripled! Good timing!