What other tech stock to consider?

[Norse2]

Not sure if this is the correct thread to post or if it should be moved to the "Coronavirus" thread.

BergenBio which is a Bergen/Oxford-based company with ongoing trials on threatment for Covid. The product, already produced, is Bemcentinib, which they hope will be a threatment for early Covid-infection. The CEO was quoted that it was a 80% chance of it working against Covid, but he later said he was misunderstood. The company is also backed by norwegian billionaire Trond Mohn who actually buys every dip, last time was 4 days ago.

As the new mutants in England comes I think this could be a great momentum-play in the near term, but also a long term hold. They have a wife pipeline as you can see in the link below:

Ticker is BGBIO on Euronext. It is my second biggest holding after TSLA, and the MCAP is around 300 mill dollars.

Bemcentinib Potential First-in-class AXL Inhibitor | TNBC – BerGenBio

 

[Mengy]

BNGO (Bionano Genomics) had some really great news this morning, and it seems like a very promising long buy to me:

Saphyr Study Is First to Analyze Cancer Regulation at Level of Single DNA Molecules, Opens Promising New Avenue of Cancer Research

 

[JRP3]

What are y'all doing with your CCIV shares? I just sold 25% of my shares at $29 premarket. Given my entry price of ~$12.75 I couldn't pass up 120% profit based on rumors. It probably is a $50+ stock if the Lucid rumors are confirmed but I bet it dips again before we hear anything concrete... any thoughts?

I'm holding.

 

[golfcart]

I am letting my shares ride - HODL and all.
They have (not officially) confirmed the merger and that it is just delayed. I think that when it does happen, it continues a steady climb.
If it see saws 30% up and down every week I am ok with that.
I am only playing with 1k shares, so its kind of a lotto ticket at this point.
(not advise.....)

looks like the right decision so far. Just hit $31.25

 

[GrandEnigma]

CCIV has treated me well so far... up just shy of 300% at the moment.

 

[golfcart]

CCIV above $34. Wow. Glad I didn’t sell it all.

 

[bkp_duke]

What are y'all doing with your CCIV shares? I just sold 25% of my shares at $29 premarket. Given my entry price of ~$12.75 I couldn't pass up 120% profit based on rumors. It probably is a $50+ stock if the Lucid rumors are confirmed but I bet it dips again before we hear anything concrete... any thoughts?

HODLing as well. Want to see how this further plays out.

 

[pz1975]

Truly amazing arbitrage opportunity between CCIV shares ($32.50) and CCIV warrants ($13.00). Strike price for the warrants is $11.50 so their true value should be $21.00.

I bought a bunch of warrants and sold the same amount (in shares) of calls. I pocketed some credit ($1.75 per warrant) and if the SP end up below my call strikes on expiration (August), I basically get all those warrants for free. If the SP goes above my call strikes, then I exercise the warrants to pay off the sold calls and make an extra $26 per share (my average strike price on the calls is $37.50). The only risk is that I can't exercise the warrants when I want as I have to wait until Sept. 18, 2021 or 30 days after a merger (whichever is later) to exercise them. I plan to roll the sold calls out from August as needed to avoid a margin call (I'd be forced to sell the warrants and lose some of my profit) if CCIV keeps going way up. This is truly an amazing very low risk opportunity.

 

[bkp_duke]

How do you buy the warrants? I've never done that.

 

[Cosmacelf]

How do you buy the warrants? I've never done that.

I think they have their own ticker symbol.

 

[Cosmacelf]

I think they have their own ticker symbol.

Could be CCIV-WT, but don't quote me on that

 

[bkp_duke]

Could be CCIV-WT, but don't quote me on that

I think I found them under CCIV.WS - can anyone verify? They are up 40% today, so I think it is the correct one.
CCIV.WS

 

[pz1975]

I think I found them under CCIV.WS - can anyone verify? They are up 40% today, so I think it is the correct one.

Yes that is them. I had to call my broker to buy them.

Requested symbol wasn't found

 

[bkp_duke]

Yes that is them. I had to call my broker to buy them.

Requested symbol wasn't found

Thanks. I need to digest your first post a little more and wrap my head around the mechanics and time-frames for it.

Much appreciated for bringing this to light.

Do you need to buy the warrants in lots of 100?

 

[pz1975]

Thanks. I need to digest your first post a little more and wrap my head around the mechanics and time-frames for it.

Much appreciated for bringing this to light.

Do you need to buy the warrants in lots of 100?

Yes I did so I could match the sold calls to the number of warrants. Let me know if you want me to explain any of it further or if you have any questions. It's probably the best risk:reward trade I have ever done in investing (because the risk is near zero as long as you don't go too deep into margin and know how to roll options forward - the sold calls aren't technically "covered" since you can't sell covered calls against warrants).

 

[bkp_duke]

Yes I did so I could match the sold calls to the number of warrants. Let me know if you want me to explain any of it further or if you have any questions. It's probably the best risk:reward trade I have ever done in investing (because the risk is near zero as long as you don't go too deep into margin and know how to roll options forward - the sold calls aren't technically "covered" since you can't sell covered calls against warrants).

So, still thinking through this, but I think the biggest "risk", and this applies to just buying shares, is how much the shares are worth after the SPAC merger. Is that correct? Or am I missing some basic tenant of SPACs such as 1 share pre-merger = 1 share post merger?

 

[Cosmacelf]

So, still thinking through this, but I think the biggest "risk", and this applies to just buying shares, is how much the shares are worth after the SPAC merger. Is that correct? Or am I missing some basic tenant of SPACs such as 1 share pre-merger = 1 share post merger?

Yes, you have to dig into the specifics of the SPAC. Usually not 1-1. Usually you can find the investor deck at the SEC edgar site and the investor deck should have that info.

 

[Discoducky]

No knock on them as a company, but what's you're theory as to growth?

They touched $50 in 2018, so I suppose that's a reasonable target in the next year or two which would be a nice investment. However, mostly their stock has been pretty lackluster in it's progression over the last few years. Not necessarily sure why it would be set to grow now. Yes, a Tesla contract is good as it's with a growing company, but net steel usage seems likely to decline as far as the auto industry is concerned as net auto sales are likely to decline. Do they have good prospects for growth outside the auto industry?

Agree for overall automotive steel potentially going down on the time horizon of 5 to 10 years. I do think that being a steel supplier for Tesla and Space X could be very beneficial if they develop new types of steel.

Could the cold rolled steel become a much larger part of their revenue and profit story over the next few years? This is what I'm betting on and why I've bought the stock. I don't expect it to double in the next year, but 10% to 30% would be just fine.

 

[ZeApelido]

Okay in the past year of SPAC frenzy, how often has the share price gone down in say a week after the merger is announced?

 

[bkp_duke]

Yes, you have to dig into the specifics of the SPAC. Usually not 1-1. Usually you can find the investor deck at the SEC edgar site and the investor deck should have that info.

So, until the merger is announced, we really don't know what the shares will be worth post merger.

I.e. we could invest $1000 (assuming no run-up in price), and post-merger it's really only worth (randomly) $500. Correct?