Just bought yesterday, now this dilution will cause a dip, and I feel like buying again, everyday there is a reason to buy.
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Tesla, TSLA & the Investment World: the Perpetual Investors' Roundtable
- Thread starter AudubonB
- Start date
They will likely start issuing these shares when SP starts going up too fast after the index funds begin buying. But it will probably only take the edge off it, as these 9 million shares are a drop in the bucket compared to the 130 million or so shares needed (based on the 26 million number that was calculated in this thread pre-split).
Tesla said "dividend to stockholders of record"
You just wrote: "beneficial owners DO NOT have their shares"
Two different things.
I believe you use RBC. Their transfer agents are
Main Agent:
ComputershareTrust Company of Canada
1500 Robert-Bourassa Blvd. Suite 700
Montreal, Quebec H3A 3S8 Canada
Tel: 1-866-586-7635 (Canada and the U.S.) or 514-982-7555 (International)
Fax: 514-982-7580 website: computershare.com/rbc
However, RBC also has
Co-Transfer Agent (U.S.):
ComputershareTrust Company, N.A.
250 Royall Street Canton, Massachusetts
02021 U.S.A.
My limited understanding is that Compu US needs to get the shares to Compu Canada who gets them to RBC. Transfer of dividends to foreign entities have extra steps and potential tax implications.
Edit: anecdotes for the sake of anecdotes:
ENB Dividends missed by RBC DI? : CanadianInvestor
The shorts are so desperate to make shareholders feel like Tesla is scamming them haha “oh no I’m diluted one percent on the hundreds of thousands this stock has made me! Guess I’ll start buying Ford, probably going to get my 1% return after a decade there”
Artful Dodger
"Neko no me"
Indeed, and the ~10M odd shares in this Cap Raise feels more than vaguely like the number of phantom short shares that need to be located and purchased in the next 2 days.
The fact that it's being done as a 'distribution' at Market rates through the usual list of suspects is a dead giveaway. I expect all those shares are already spoken for.
Well played, Elon Zack and Hiro, well played.
Artful Dodger
"Neko no me"
What if they owed $5 Billion USD?
But isn't this throwing a bone at them as the squeeze would have continued on as they try to locate shares from a smaller and smaller float?Indeed, and the ~10M odd shares in this Cap Raise feels more than vaguely like the number of phantom short shares that need to be located and purchased in the next 2 days.
The fact that it's being done as a 'distribution' at Market rates through the usual list of suspects is a dead giveaway. I expect all those shares are already spoken for.
Well played, Elon Zack and Hiro, well played.
I don't think so, because historically TSLA has rocketed up after almost every cap raise announcement (after a slight delay for the news to be digested). I expect this will be the same.
Why would the board play their game? Why help them getting these shares since they were betting on a stock price drop? Why would a 1% dilution be for the current shareholder profits since Tesla will generate the cash flow anyway. I'm not sure I follow.Indeed, and the ~10M odd shares in this Cap Raise feels more than vaguely like the number of phantom short shares that need to be located and purchased in the next 2 days.
The fact that it's being done as a 'distribution' at Market rates through the usual list of suspects is a dead giveaway. I expect all those shares are already spoken for.
Well played, Elon Zack and Hiro, well played.
I'm very happy the price is pulling back now though, as I have a covered call to buy back
mickificki
Member
Credit to CNBC. They are not selling a short story on this raise. Indicating that many believe it could have been a bigger raise and including the fact that it would time with S&P inclusion if it is to happen.
Two years ago Tesla would be getting trashed on this news
Two years ago Tesla would be getting trashed on this news
i agree that language creates confusion. but it was indeed not distributed by the issuer to DTCC and its street participants, yet
i agree about shenanigans, i just think some of the causes that have been identified are misconstrued a bit
for other examples - AAPL hasn't allocated yet either, and is expected to hit DTCC tomorrow as well.
most forward splits allocate on ex+2
- some brokers dont wait for the shares to be in their DTCC (or custodian acct, if not a direct dtcc participant) before adjusting their customer base, and some do
- in other words there is often a difference between how the issuer allocates split proceeds to the street, and how individual broker, prime broker, bank, etc allocates split proceeds to its customer base
and brokers messed up AAPL too.
in fact, they mis-priced, mis-valued, and mis-reported unrealized PnL with tesla and aapl just as they do with just about every corp action (sans a cash div, but some even screw that up!), not just forward splits. i can pretty much guarantee that.
they are flat out sh!tty at processing, handling, and servicing corporate actions, and these last few days have proven it. even though IB was one of the best ones at reflecting the split in customer accounts in timely fashion, there was still a handful of bugs that resulted in less than stellar 'service' or customer experience.
but to me, there is no excuse for some of these other brokers to handle it in such poor way as to not have the correct value in the account...like thats just bad
_________
of course, the elephant in the room is, why is tesla behaving this way?
well, we're all obviously onto something here, even aapl's 25% run after split announcement is a bit extra...but teslas run? crazy. someone is buying, and its silly to suggest that its all robinhooders...thats insulting to us when some CNBC twit comes on and blames it on that, when looking at the notional value of the rise
and @Hock1 suggested we get into it more this weekend, which would be very good
cnbc this morning had a blurb about split and shorting - it didnt add much value as far as explaining this phenomenon
How Tesla's stock split has impacted investors shorting the stock
I don't really care too much about that. But tell me, how much have you aged this month?
Be honest.
Unless you think my large Canadian Broker got special treatment from Tesla's Transfer Agent on Sat, Aug 29 when all my TSLA Dividend Shares were present and accounted for, but two other large Canadian Brokers have "still have not received their shares from the Transfer Agent"?
Have you even considered that they may be lying?
Be honest.
BTW, your innocence is adorable (but not helpful). Personally.
Word.
Not to fuel the fire, but Questrade had everything in order as of market open. Only thing that wasn’t was the daily gains calculations as it seems like valued for prior day were all out of whack. However, no need to call to place trades on shares or options. Everything right there and tradable and quoting Level 2 without a hitch.
I’m astonished that RBC, our largest institution by a huge margin, had any kind of delays. Especially as it seems like this wasn’t just an issue of Quebec infrastructure versus other provinces.
I'd like to add to that the majority of the names to act as sellers reads like a who's-who list of TSLA short sellers. There is a possibility that they still need help producing the shares for dividend delivery. This might be the final destination of some or many of those shares. JMO.
Next thing we'll hear that Tesla has a lazy balance sheet.
Congo Line
(not the dance)
I think the news outlets and tv analysts have learned not to doubt TSLA because they will inevitably look stupid soon thereafter
bubb
Member
Yeah not so much on Bloomberg right now...characterizing it as dodging the scrutiny of a typical secondary, sigh.
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