-
Want to remove ads? Register an account and login to see fewer ads, and become a Supporting Member to remove almost all ads.
- Status
Uh, I would caution at looking at a 12 month chart when trying to find these levels for current trading. A six month would be much better, but a 15 day is going to be your friend.
Or, maybe your post was just in humour?
A bit off topic, you might be surprised. Many of my friends turned out to be Trump followers... after knowing them for decades. Spun my head! When I was in college, everyone (I thought) smoked weed and was not religious. Fact is, that's all I knew and boy was I wrong! My perspective was heavily skewed with assumptions. I bet you'd be shocked if you asked these people who they're voting for in the parking lot.
I really gotta get outta Arizona! Canada is looking better everyday, AND it's my home country. I'm still very long on $TSLA and that will fund my lakefront property someday. I'll post pics when I get there, while thanking all those shorts who supported my retirement. Sold my last option today, just holding about 2/3 $TSLA in my IRA for the next 5-10 years and coasting a long long way.
Shorts and PR network are defending the bond conversion point. If Tsla goes past it and sustains, squeeze gains higher probability.
The question is, what cash on hand impact would be implied if bonds (2019) coming due convert over to shares?
Artful Dodger
"Neko no me"
You didn't happen to have BREAD with lunch, did you?
Tesla can also just choose to settle those in cash, regardless, right? After the Q3 results, I’m not sure what keeping the stock price low would do for shorts anyway, in that regard. It’s clear Tesla has the money to cover it. If anything, it may be better for them to cover now, try to drive the SP higher, hope Elon will pay the full rate anyway out of pride, and then short back in, hoping that large payment drives their EPS negative again.
RobStark
Well-Known Member
I saw that response.
And they aren't necessarily contradictory.
He doesn't think Tesla is open to sharing but would do so in a heartbeat if it were available to Bollinger Motors.
I'm trying to diversify a bit myself and sales are everywhere. Netflix had a good Q3 but Q4 was projected low, then next year way up... any clue what's happening there?
FYI, my goto now for movies is Netflix through Direct TV. Movies are so cheap at about 2-3 a month for us. Great content!
dandurston
Member
I don't understand the fixation on the bond conversion point ($360). If Tesla wanted to pay off those bonds in stock rather than cash but the share price was lower than the $360 conversion price they aren't screwed because they could simply do a capital raise at whatever price it's at and use those funds to pay off the bonds.
If the share price is at $360 and the $920 mil bonds convert to shares, that's 2.55 million new shares of ownership dilution.
But if the share price languishes at $335 Tesla, could simply sell 2.75 million new shares at that price to raise the $920 million and pay off the bonds. So we're talking about a difference of 200,000 shares in dilution - hardly a big deal - Tesla issues more shares than that in stock based compensation all the time.
Arguably worse would be if the share price goes higher than $360 because then the bond holders would be getting ownership in the company for below market rates.
So the best scenario with regards to these bonds, is that the share price sits at about $360 until the bonds convert. A little lower is fine but adds the hassle of an elective rather than automatic capitol raise. A little higher hands out ownership in the company for below market value.
If the share price is at $360 and the $920 mil bonds convert to shares, that's 2.55 million new shares of ownership dilution.
But if the share price languishes at $335 Tesla, could simply sell 2.75 million new shares at that price to raise the $920 million and pay off the bonds. So we're talking about a difference of 200,000 shares in dilution - hardly a big deal - Tesla issues more shares than that in stock based compensation all the time.
Arguably worse would be if the share price goes higher than $360 because then the bond holders would be getting ownership in the company for below market rates.
So the best scenario with regards to these bonds, is that the share price sits at about $360 until the bonds convert. A little lower is fine but adds the hassle of an elective rather than automatic capitol raise. A little higher hands out ownership in the company for below market value.
cheshire cat
Member
Don't you just luv gettin' away from it all
Why is it bad if the bond holders get ownership below the market value?
They would just sell these shares in the open market... and if there are enough buyers nothing would happen.
They would just sell these shares in the open market... and if there are enough buyers nothing would happen.
They're going to pay the bonds off in cash, and said so
The bond conversion point is entirely irrelevant.
- Tesla has long said that it plans to pay them in cash
- Tesla has the money to pay them in cash, and is generating major free cash flow above and beyond that.
Well if they are converting the bonds into shares, then TESLA would need to pay more money?
you're referring to the 920M for next March, at 360$ and not the 240M due in Nov 2018 at 560$?
Certainly not and again, they're paying in cash
davecolene0606
Member
I thought I heard Elon specifically say with emphasis that these bonds will be paid off in cash. So all this other stuff is moot.
Fire Away!
Do the bond holders not have the right to convert their debt into shares when the pice is over 360$?
- Status
Similar threads
- Locked
- Locked
- Locked
- Poll
