What other tech stock to consider?

[StarFoxisDown!]

Unity Software (U) was body-slammed AH tonight because their forward guidance was below expectations.

Might be the last opportunity to ever get shares this cheap. IMO, a major "buy the dip" opportunity.

Sitting at $134.00 AH on Feb 4, 2020.

I work in the videogame industry and I wouldn't touch Unity stock with a 10 ft pole. They're going to have serious issue monetizing the business to make it actually valuable...especially for their current valuation. The moment they really try to monetize, you'll see developers flock to Epic before you can blink because any sane developer is going to go to Unreal for their toolset. Developers simply use Unity for the cost verses going with Epic right now

 

[TSLAopt]

I work in the videogame industry and I wouldn't touch Unity stock with a 10 ft pole. They're going to have serious issue monetizing the business to make it actually valuable...especially for their current valuation. The moment they really try to monetize, you'll see developers flock to Epic before you can blink because any sane developer is going to go to Unreal for their toolset. Developers simply use Unity for the cost verses going with Epic right now

Anyone have any thoughts on HEVO: Wireless Charging for Electric Vehicles if they were to go public via SPAC sometime in 2021?

 

[mekberg]

I work in the videogame industry and I wouldn't touch Unity stock with a 10 ft pole. They're going to have serious issue monetizing the business to make it actually valuable...especially for their current valuation. The moment they really try to monetize, you'll see developers flock to Epic before you can blink because any sane developer is going to go to Unreal for their toolset. Developers simply use Unity for the cost verses going with Epic right now

Same. Disclaimer: I work for Epic.

 

[golfcart]

I appreciate the advice and I did consider that scenario. I figure the only way CCIV moons is if a well-received merger is announced. Then I can sell the warrants right away or exercise the warrants 30 days later and sell the shares, then close out the new short position from the exercised calls. I’d still end up with profit because the warrants would go up similarly to the share price.

Thanks for this conversation between you and hershey101. I have one related question to see if I am understanding the situation correctly. I don't want to get involved in any shorts or anything like that.

I am trading in a 401k retirement account so no capital gains to consider. The only things I am interested in are warrants and common stock. Currently I have a bunch of common stock. If I understand correctly I have 3 options for trading CCIV on Schwab but I will just focus on the common stock or warrant:

1. CCIV (Class A Stock) Closed Yesterday at $30.22
   
2. CCIV/WS (Warrant Exp 8/4/25 with $11.50 strike price) Closed yesterday at $13.20

If I plan to buy now and hold long term, it seems like the real cost of each share is currently

1. $30.22 (Just a regular share)
   
2. $13.20 + $11.50 = $24.70 (Simply the warrant + strike price)

Do I understand that correctly? There may be some nominal fee in cashing in the warrants but that is the general situation right?

If that is correct then I must also consider the downside with each type of share. The common stock could drop to $10 and the warrant could expire and go to zero:

1. $30.22 - $10 = $20.22 (The common stock has a floor of $10 so the downside is $20.22 from the current price)
   
2. $13.20 (The warrant just expires and you get nothing).

So under the assumption that I plan to hold long term, why would I want to buy anything besides warrants? The upside is higher and the downside is lower.

The only reason I can see to buy common stock is to day trade. Is that correct? Or am I missing something? I ask because I currently have a decent sized position (for me anyways, I know there are some high rollers on here) in common stock that has appreciated over 200% at this point. I am thinking I can take some profit on the next surge then wait for the next dip and buy warrants to hold rather than more common stock.

 

[golfcart]

FYI CEO of Lucid on CNBC now.

 

[pz1975]

Thanks for this conversation between you and hershey101. I have one related question to see if I am understanding the situation correctly. I don't want to get involved in any shorts or anything like that.

I am trading in a 401k retirement account so no capital gains to consider. The only things I am interested in are warrants and common stock. Currently I have a bunch of common stock. If I understand correctly I have 3 options for trading CCIV on Schwab but I will just focus on the common stock or warrant:

1. CCIV (Class A Stock) Closed Yesterday at $30.22
   
2. CCIV/WS (Warrant Exp 8/4/25 with $11.50 strike price) Closed yesterday at $13.20

If I plan to buy now and hold long term, it seems like the real cost of each share is currently

1. $30.22 (Just a regular share)
   
2. $13.20 + $11.50 = $24.70 (Simply the warrant + strike price)

Do I understand that correctly? There may be some nominal fee in cashing in the warrants but that is the general situation right?

If that is correct then I must also consider the downside with each type of share. The common stock could drop to $10 and the warrant could expire and go to zero:

1. $30.22 - $10 = $20.22 (The common stock has a floor of $10 so the downside is $20.22 from the current price)
   
2. $13.20 (The warrant just expires and you get nothing).

So under the assumption that I plan to hold long term, why would I want to buy anything besides warrants? The upside is higher and the downside is lower.

The only reason I can see to buy common stock is to day trade. Is that correct? Or am I missing something? I ask because I currently have a decent sized position (for me anyways, I know there are some high rollers on here) in common stock that has appreciated over 200% at this point. I am thinking I can take some profit on the next surge then wait for the next dip and buy warrants to hold rather than more common stock.

You are right about the prices of stock vs warrants. It was that massive difference that allowed me to develop my arbitrage trade. There is no cost to exercise the warrants other than a commission fee with your broker (maybe - I’m not sure about that though but would be $5-10 or whatever).

Downside to warrants that I can see are the risk of expiration but that is 5 years away and I would trade sell them off and convert to share long before expiration to avoid any time decay.

The other possible downside is they can’t be exercised until 30 days after a merger is closed (or 1 year after they were first created - Sept 20, 202-, whichever is later). So if a merger is announced and the SP goes way up but then drops back down before the warrants can be exercised, you may miss the peak before you can convert them into shares. But you could always just sell the warrants during that period if you want, but your profit may be a bit less if they don’t go up as much as the SP.

 

[golfcart]

The other possible downside is they can’t be exercised until 30 days after a merger is closed (or 1 year after they were first created - Sept 20, 202-, whichever is later). So if a merger is announced and the SP goes way up but then drops back down before the warrants can be exercised, you may miss the peak before you can convert them into shares. But you could always just sell the warrants during that period if you want, but your profit may be a bit less if they don’t go up as much as the SP.

That sounds like the one big possible downside. I have noticed a lot of these SPAC mergers peak shortly after the merger then pull back sometimes significantly in the following weeks. Still, it is hard to pass up what is basically a 20% discount even if the risk of a pullback is there. I appreciate the insight.

 

[golfcart]

I brought it up before and I will say it one more time. TSNP. I got in at around $0.25 and think this could be huge. That's just my opinion of course so do your own research first.

HUMBL
www.humblpay.com

 

[chronoreverse]

What's going on with SENS? Huge volume this morning and price is bumping up but I don't see any news

 

[ckessel]

I brought it up before and I will say it one more time. TSNP. I got in at around $0.25 and think this could be huge. That's just my opinion of course so do your own research first.

HUMBL
www.humblpay.com

I got in yesterday afternoon based on your post, so yay .
Admittedly, I haven't done my diligence though and need to correct that. Seems like there are a plethora of online payment companies (paypal, venmo, god knows I've heard other names). Does Humble play in a different space or are they bringing something new to it?

 

[bkp_duke]

What's going on with SENS? Huge volume this morning and price is bumping up but I don't see any news

No idea, nothing I can find on news feeds, but I'm liking it. Might sell some covered calls on the shares today for Feb 19th expiration. If the shares go up to $5 and get called away in 2 weeks, I will be extremely happy.

 

[golfcart]

I got in yesterday afternoon based on your post, so yay .
Admittedly, I haven't done my diligence though and need to correct that. Seems like there are a plethora of online payment companies (paypal, venmo, god knows I've heard other names). Does Humble play in a different space or are they bringing something new to it?

Focused in blockchain across multiple asset types and they aim to be global. Also has a marketplace. Just launched block ETX product in over 100 countries. Think global Venmo + Amazon + SoFi rolled into one.

Will they succeed? I don’t know. But I’m willing to pay $0.25 a share to find out. The market for remittances alone is worth the entry price IMO...

 

[cusetownusa]

I brought it up before and I will say it one more time. TSNP. I got in at around $0.25 and think this could be huge. That's just my opinion of course so do your own research first.

HUMBL
www.humblpay.com

I put a limit order at 1.05 after i read this post. The lowest it went today was 1.07 then shot straight up...doh.

 

[golfcart]

I put a limit order at 1.05 after i read this post. The lowest it went today was 1.07 then shot straight up...doh.

That is the worst... I had a sell order miss like that recently. I’m sure it’ll pull back some and you’ll get another chance.

If I had settled funds I’d still be buying though, I am definitely long on the stock. Sold some CCIV at $33.23 to get more TSNP and some CCIV warrants when it dips again. Hopefully they don’t announce the Lucid merger over the weekend while I’m waiting for the funds to settle.

 

[golfcart]

Sold the last of my CCIV regular stock at $35.09 hopefully no merger news until at just least Tuesday

 

[chronoreverse]

I work in the videogame industry and I wouldn't touch Unity stock with a 10 ft pole. They're going to have serious issue monetizing the business to make it actually valuable...especially for their current valuation. The moment they really try to monetize, you'll see developers flock to Epic before you can blink because any sane developer is going to go to Unreal for their toolset. Developers simply use Unity for the cost verses going with Epic right now

Another bearish opinion from a different angle:
Not just Facebook: Snap, Unity warn Apple’s tracking change threatens business

 

[palmer_md]

All these IPO[X] stocks are doing quite well. IPOE(SoFi) has doubled since this post a couple weeks back when the merger was announced, and it seems to be dragging the others up with it.

IPOC is now CLOV(Clover Health) and that's IMO rising due to some recent acquisitions of similar companies. Hoping they maintain growth and are acquired soon so I can bail. Not interested in making money off our bloated and inefficient healthcare system.

Keeping an eye out for IPOG to become available for trading. Guess I can put a buy order in Fidelity for that symbol @ $10.50 and it'll just hopefully trigger when IPOG opens? I'm a little hesitant to do a market order, but maybe a small one just in case there's a non-algo run on it at 9:35am that day.

Edit: Tried to place a buy order for IPOG on Fidelity and am getting "invalid symbol" error. Will do some research for workarounds. Anyone have thoughts on standing orders for stocks not yet available?

I saw this news today. Not pretty for Chamath and Clover (CLOV). Clover Health: How the “King of SPACs” Lured Retail Investors Into a Broken Business Facing an Active, Undisclosed DOJ Investigation I see it dropped 12% yesterday on the article being published and then rose 5% today. Not sure what to make of it, but could be bad for all the IPOx SPAC's at least until it is sorted out what happened and when.

 

[MP3Mike]

I saw this news today. Not pretty for Chamath and Clover (CLOV). Clover Health: How the “King of SPACs” Lured Retail Investors Into a Broken Business Facing an Active, Undisclosed DOJ Investigation I see it dropped 12% yesterday on the article being published and then rose 5% today. Not sure what to make of it, but could be bad for all the IPOx SPAC's at least until it is sorted out what happened and when.

Here is Clover's response: In Response to Short Seller Firm’s Questions

 

[palmer_md]

Here is Clover's response: In Response to Short Seller Firm’s Questions

This is awesome. They directly answered every question posed. That's why the stock went back up today. Nice to see an quick and honest response to allegations.

 

[Mikeb]

Great DD. A worth a read. $SENS

https://www.reddit.com/r/RobinHoodP...urce=share&utm_medium=ios_app&utm_name=iossmf