What other tech stock to consider?

[pz1975]

Yeah, Aug 17 is ex-date so must buy before then (on or before the 16th) to settle by the 17th record date. I mistakenly offset the offset.


Good point regarding not counting on dividend cash to close position.

Looks like this was actually too good to be true. I was digging more and the SSSS dividend is a type of dividend called a “special dividend” and thus option contracts will be adjusted by the same amount as the dividend. This eliminates the arbitrage and there is no easy profit potential here since the SP will also drop the same as the dividend.

Option contract adjustments - Fidelity

Learn about certain events that could trigger an adjustment in an options contract.

www.fidelity.com

 

[wdolson]

Looks like this was actually too good to be true. I was digging more and the SSSS dividend is a type of dividend called a “special dividend” and thus option contracts will be adjusted by the same amount as the dividend. This eliminates the arbitrage and there is no easy profit potential here since the SP will also drop the same as the dividend.

Option contract adjustments - Fidelity

Learn about certain events that could trigger an adjustment in an options contract.

www.fidelity.com

The dividend they issued earlier this year was a special dividend, but this is classified as a semi-annual dividend. This does appear to be getting into a murky corner of investing where the rules are a bit unclear.

 

[mongo]

@pz1975 @wdolson
Looks like this is a special class of dividend due to the stock payout, and payout is not necessarily cash:
SuRo Capital Corp. Reports Second Quarter 2021 Financial Results

Each registered shareholder will have the opportunity to elect to receive the dividend in cash or in shares of the Company's common stock. Registered shareholders electing to receive the dividend in shares of the Company's common stock will receive their entire dividend in the form of shares of the Company's common stock regardless of the elections made by any other shareholders. However, the total amount of cash to be distributed to all shareholders electing to receive their dividends in cash will be limited to no more than 50% of the total amount to be distributed to all shareholders. In the event the amount of cash to be distributed to all shareholders electing to receive the dividend in cash would exceed 50% of the total dividend, each registered shareholder electing to receive cash will receive a pro rata portion of the total cash to be distributed based on the number of shares held by each such shareholder. The remainder of the dividend in excess of a shareholder's pro rata share of the total amount of cash to be distributed will be paid in the form of shares of the Company's common stock. The number of shares of our common stock to be issued to shareholders receiving all or a portion of the dividend in shares of our common stock will be based on the volume weighted average price per share of our common stock on the Nasdaq Capital Market on August 11, 12, and 13, 2021, less $2.25 to reflect the declared dividend.

From the May dividend theocc.com

Pursuant to the terms of the Interpretation .01, a stock dividend that is less than a 10% stock dividend and occurs on a quarterly basis will be considered an ordinary stock dividend. Dividends meeting these criteria of an ordinary dividend will generally not result in an adjustment. Because this dividend does not occur quarterly and because the amount of shares paid to non-electing shareholders is expected to exceed 10% (SSSS closed at $14.24 on the SSSS dividend declaration date of May 5, 2021), the $2.50 dividend paid in stock to non-electing shareholders qualifies as a non-ordinary stock dividend under the OCC By-Laws and will therefore result in a contract adjustment.
Exercise Consideration – On May 17, 2021, SSSS options will become adjusted SSSS1 options. The deliverable for SSSS1 will reflect the additional amount of stock distributed for the dividend to shareholders who failed to make a valid election. SSSS Call option holders who do not wish to receive the dividend in the form distributed to non-electing shareholders must exercise their options in sufficient time in advance of the contract adjustment to observe all conditions of the election. In all cases, it is the sole responsibility of persons holding call options seeking to participate in the election to determine when to exercise their options and to comply with all terms and conditions of the election

So this explains the weird options floating around.

 

[wdolson]

@pz1975 @wdolson
Looks like this is a special class of dividend due to the stock payout, and payout is not necessarily cash:
SuRo Capital Corp. Reports Second Quarter 2021 Financial Results

From the May dividend theocc.com

So this explains the weird options floating around.

Interesting. Though I believe electing to receive dividends as stock instead of cash is always an option. One of my father's stocks was set to receive stock instead of cash. He had held it for about 25 years so there were around 90 partial shares in the account.

 

[mongo]

Interesting. Though I believe electing to receive dividends as stock instead of cash is always an option. One of my father's stocks was set to receive stock instead of cash. He had held it for about 25 years so there were around 90 partial shares in the account.

Straight delivery, or rolling the cash back into shares? In this case, one might be limited to 50% of the cash value (untill they sell the othet portion at the price on delivery day).

 

[willow_hiller]

EVGo has posted their first quarterly results since going public in July. Overall pretty disappointing, am considering selling back my small position once I can do so at break-even: EVgo Inc. Reports 2021 Second Quarter Results

Small miss on revenue, but ultimately I just don't see how they can keep pace with Tesla once Superchargers go public.

Charger stall count through June 30, 2021 totals 1,548, as EVgo added 104 new operational stalls in the second quarter of 2021 while continuing to execute on its active engineering and construction pipeline (the “Active E&C Pipeline”) of more than 2,000 charger stalls. ... Roughly 85% of the Active E&C pipeline stalls are located within the top 20 U.S. metropolitan markets and the majority are part of EVgo’s partnership with GM to deploy over 2,700 fast charging stalls by 2025.

The way they're reporting "stalls" here makes me believe these are individual connectors. By way of comparison, Tesla reported a total 26,900 Supercharger connectors in Q2 2021, up 2,385 QoQ... And most of Tesla's new Superchargers are 250 kW, while most of EVGo's DCFC are 50 kW.

 

[JRP3]

I don't see much of a business model for stand alone charger networks.

 

[AquaY]

I don't see much of a business model for stand alone charger networks.

Opening tesla charging stations will crush the less efficient networks.
Of course it depends how much taxpayer money the gubment dumps into them.
Many a non viable business has made money because of government programs.

 

[JRP3]

APPH, AppHarvest, getting wrecked after Q2 results, down 32% at the moment.

AppHarvest Announces Q2 2021 Results, Plans for New Holding Company Structure to Capitalize on Growing Global Need for Controlled Environment Agriculture, Announces Non-Binding LOI for JV with Mastronardi Produce to Expand Farm Network, and Reaffirms

Company delivered net sales of $3.1 million on 8.6 million pounds of tomatoes sold,concluding the abbreviated 2020 planting season Secured $91 million in new, non-dilutive financing from leading sustainability investor Equilibrium Capital and $75 million from Rabo AgriFinance with four farms...

finance.yahoo.com

 

[Ocelot]

Anyone have a stake in LMND? I like how the customer growth is increasing and they seem to be investing in growth. Small concern that revunue dropped Q2 to Q2, but should customer base keeps growing that will likely change . Would appreciate any other peoples thoughts on this. I like how they donate to various charities.
I do wonder if and when they start turning a profit, how the stock might follow.

q2 shareholder letter

 

[Buckminster]

Anyone have a stake in LMND? I like how the customer growth is increasing and they seem to be investing in growth. Small concern that revunue dropped Q2 to Q2, but should customer base keeps growing that will likely change . Would appreciate any other peoples thoughts on this. I like how they donate to various charities.
I do wonder if and when they start turning a profit, how the stock might follow.

q2 shareholder letter


View attachment 695275

Yes, LMND is my second largest position but just a fraction of TSLA. @DaveT likes.
They could do something when they launch auto insurance.

 

[JRP3]

Proterra Q2 results and announcement of deal with LG, after hours not impressed.
Proterra and LG Energy Solution to Partner on Long-Term Supply Agreement For EV Battery Cells

Proterra Inc. - Financials - SEC Filings - SEC Filings Details

ir.proterra.com

 

[dakh]

And what stock is green today? That's right, STLD. Thanks @Discoducky! I bought 2k shares in a few transactions over time, and up almost 20% since.

I gotta do this again, thank you @Discoducky! Over 100% gain since I got in on STLD, plus dividend.

Sits nicely next to STWD which is 50% up since I was made aware of how badly mispriced it is plus that one pays 7.5% div as well.

 

[DaveT]

Anyone have a stake in LMND? I like how the customer growth is increasing and they seem to be investing in growth. Small concern that revunue dropped Q2 to Q2, but should customer base keeps growing that will likely change . Would appreciate any other peoples thoughts on this. I like how they donate to various charities.
I do wonder if and when they start turning a profit, how the stock might follow.

q2 shareholder letter


View attachment 695275

They changed how the report revenues due to a new reinsurance agreement starting mid-2020, so Q2 2020 and Q2 2021 revenues aren't comparable. You can see details in their Q2 2020 shareholder letter for details.

 

[wdolson]

Array (ARRY) was way down for months, but it's finally starting to climb back out of the hole. A number of analysts have been saying the last few weeks the stock is very undervalued.

They make the equipment that allow commercial solar arrays to track the sun. From everything I can see the fundamentals are OK, they took a big hit because their earnings in May were down. There were a slew of class action lawsuits claiming management did not properly report how much their expenses went up because of the steel and other supply shortages. I haven't tracked the lawsuits, but maybe they were thrown out?

 

[Mengy]

Anyone else here own stock in FUV (Arcimoto)? It really dove off a cliff today, man o man.

 

[UnknownSoldier]

Most of those EV SPAC's are doomed. Are any of those companies shipping actual products?

 

[Buckminster]

Anyone else here own stock in FUV (Arcimoto)? It really dove off a cliff today, man o man.

Yup, they have been doing well... Down 17% today. Not sure why. They are still cheap - $500m market cap.

 

[AquaY]

Earlier in this thread someone spoke of SHOP.
I tried to find the original discussion but couldn't . Guess i didn't look far enough back and going through all 200 pages is a firm "Nope"
Anyway, I decided to play with it. For me I pay more attention if I'm in the trade even if it is for a small amount.
So on 8/10 I STO 8/13 $1500 P for $8.90
They went ITM
I considered taking assignment and doing " the wheel" but the options were trading so close to intrinsic value that I just rolled them to 8/20 $1450 puts.
Ended up with a better credit than I thought.
Ended up BTC $8.06 for the 8/13 $1500 and sold the 8/20 1450 puts for $12.38.
Lets see what next week brings.

 

[wdolson]

Anyone else here own stock in FUV (Arcimoto)? It really dove off a cliff today, man o man.

I don't own any, but I saw an article that they are expected to lose 16 cents a share when they release the earnings report next week. Their revenue increased quite a bit over a year ago. They lost 15 cents a share last year and got a pass then.

How the markets react short term can be strange.

Most of those EV SPAC's are doomed. Are any of those companies shipping actual products?

Proterra has shipped electric buses and EVGo has charger installations all over the US.

I can't remember who said it, but a few months ago in this thread someone pointed out that going public via a SPAC allows a company to short cut around a number of steps they would normally have to do to go public and many of the now public companies don't have the management to be a reliable public company. Unfortunately a number of these companies might go under despite having some new, innovative ideas. Others might be bought out cheap by more established companies looking to buy technology on the cheap.