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How Tweet It Is….
To be purchased by Elon Musk?
Sure, the Musky One lastly gave in. Threw within the towel. Waved the white flag. Purchased the…
Jeez, we get it!
At about midday yesterday, Elon Musk introduced he was going by together with his acquisition of Twitter (NYSE: TWTR). The shock announcement took Wall Avenue by storm. Buying and selling on TWTR inventory was halted briefly earlier than the shares surged greater than 20%.
For present TWTR stockholders, it’s a reasonably candy deal. Musk is shelling out $54.20 per share for Twitter — the worth he initially agreed upon and signed binding authorized paperwork for.
The query a lot of you might be most likely asking yourselves proper now’s: “Why?”
I imply, why would Elon Musk agree to purchase Twitter now when he’s actively arguing in courtroom towards the acquisition?
Ya’ll’re good, Nice Ones. Y’all can most likely determine this one out all by yourself…
As a result of he’s dropping?
Precisely. Thus far, Delaware Chancery Choose Kathaleen St. J. McCormick has dominated in Twitter’s favor roughly six occasions up to now three months, whereas solely throwing Musk’s authorized crew a bone possibly twice — and each of these occasions had been minor victories, certainly.
Moreover, Musk’s authorized crew has been slightly ham-fisted about the entire authorized factor. Choose McCormick slammed Musk for “evident deficiencies” in how his authorized crew responded to Twitter’s calls for for textual content messages throughout discovery … and for basic “sloppiness in adhering to pointers.”
Oof. However then, all of us knew that the acquisition settlement was just about ironclad. There was no method Elon Musk was going to weasel his method out of both shopping for Twitter outright or paying the multibillion-dollar breakup charge.
My guess is that Musk’s authorized crew informed him he was screwed, so as a substitute of losing a couple of billion on a breakup charge, Musk determined to waste much more by simply buying Twitter.
That is the place the enjoyable begins, Nice Ones.
If y’all simply occur to be holding TWTR inventory, good on ya. You simply acquired a 20% bump within the final 24 hours. Take that bump and squirrel that cash away into one other funding … fast! Get out of Twitter now earlier than this mess will get any weirder.
And if by some means, as a TWTR stockholder, you’re provided a stake in an Elon-owned Twitter … go on that supply just like the plague.
Musk is about to roll again posting restrictions, reverse account bans and purge all of the bots. Now, these all sound like good issues, relying on the place you get your information. However Twitter’s posting restrictions had been designed to each hold the corporate out of authorized bother and to appease advertisers.
Keep in mind, promoting income is Twitter’s lifeblood. It will possibly’t survive with out it. So pissing off your advertisers within the title of “free speech” sounds all noble and morally proper.
However you could be noble and morally proper … and nonetheless be utterly broke. Sadly, morality and the Aristocracy don’t pay the payments as of late.
Moreover, proper or fallacious, Twitter’s bot account estimates could or is probably not utterly truthful. However the numbers are truthful sufficient for advertisers.
When your livelihood as an organization relies on reaching the most individuals as doable with adverts, telling advertisers that bots make up half your complete subscriber base might be a really unhealthy transfer.
Don’t get me fallacious: I’m all for honesty and free speech. However Twitter is an organization … not the federal government.
No publicly traded firm utterly permits free speech, for authorized causes. None. Interval. Moreover, if Twitter’s bot state of affairs is really that unhealthy, it must be handled.
However there’s most likely a greater, extra gradual method to take care of each points than simply ripping the Band-Assist off and utterly killing your promoting income.
Lastly, Elon Musk has stated that the acquisition of Twitter could be essential in his growth of “X, the tremendous app.” In true Musk fashion, there aren’t any precise particulars on this “tremendous app.”
We had a reputation for this kinda factor again within the day … “vaporware.” I’m gonna want an entire lot extra data earlier than I even contemplate taking this “tremendous app” significantly.
The underside line right here, Nice Ones: Promote Twitter. Like Billy Joe and Bobby Sue … take the cash and run.
Doesn’t sound very “tweet” to me, Nice Ones. However you possibly can’t say I didn’t warn you.
Thanks, Steve Miller, now what if I don’t personal Twitter? And don’t need to personal Twitter?
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Good: Taters On The Lam
Mmmm… I may go for some lamb and mashed taters proper now. Why should you tempt me, Nice Stuff?
Oh, as a result of the market tempts me. A number of good taters… Pretty massive golden chips with a pleasant piece of fried fish…
Nice Ones, did y’all know there’s a publicly traded firm that’s actually all about Samwise Gamgee’s beloved po-tay-toes?
Did y’all additionally know that stated firm quadrupled its earnings over the previous quarter, like a mutant tater gone rampant?
Potato provider Lamb Weston (NYSE: LW) simply reported earnings that shot up 317% this quarter, reaching $0.75 per share and handily topping expectations for $0.50 per share. Gross sales had been solely up 14% on the quarter as general potato quantity fell, although that also met the Avenue’s estimates.
Total potato quantity? How loud is a potato? I didn’t even assume they made noise.
Many individuals don’t know this, however potatoes solely have eyes … no ears. So that they do not know how loud they’re being. Poor potatoes…
Anywho, potato demand is down barely, as informal and fast-food restaurant visitors ebbs. And contemplating these of us are the most important french fry fryers … that doesn’t bode properly for Lamb Weston.
Nonetheless, potato value will increase offset the drop in quantity, conserving the tasty tater dealer’s earnings rising at a wholesome tempo … which, contemplating we’re speaking about starchy fried goodness, it’s fairly stunning that any a part of this report was “wholesome.”
Man. Now I have to go make waffle fries…
Higher: Straight Outta Syracuse
A loopy chipmaker named Micron (Nasdaq: MU), with information a couple of brand-new phenomenon.
Or one thing like that…
Micron’s already constructing a brand new plant in Boise, Idaho (and no, it’s not a potato plant). However depart it to Micron to drag a DJ Khaled and begin constructing one other one — this time over in Syracuse, New York.
The brand new chipmaking plant is about to be the most important, best, chippy-est chipmaking plant this nation’s ever seen … or at the very least that’s how Micron’s hyping up traders as we speak.
This ain’t your daddy’s memory-making fabrication plant — Micron’s calling it a “megafab.” It’s like your regular chipmaking fab however … mega?
Psshaw, I invented being megafabulous, Nice Stuff.
After all, constructing a megafab means constructing a mega funds too: Micron says it’s going to place $100 billion into the undertaking, which can take about 20 years to construct. When the megafab is totally armed and operational, it’ll increase Micron’s U.S. footprint, such that 40% of the corporate’s DRAM manufacturing might be stateside.
In different phrases … don’t get your hopes up on truly seeing the influence from this plant anytime quickly. Heck, MU barely even budged on the information, sinking 1% amid the day’s volatility.
Greatest: Ford Followers Get Feisty
Ford (NYSE: F) made it to the “finest” slot? That’s stranger than two straight days of constructive inventory information! Why, I by no means…
Ford simply nabbed itself an analyst improve from Morgan Stanley — equal weight to obese. Morgan Stanley, within the temper to stir the automaking pot, additionally downgraded rival Basic Motors (NYSE: GM). Based on analysts:
Our choice for Ford vis-à-vis GM is pushed by our views of the enterprise portfolio and technique. Each shares provide roughly a ten% FCF yield on our FY23 forecasts.
This ‘splitting of the scores’ can also be not meant to convey a message of recession-bottom purchase sign as we have now reserved that in our bear case eventualities for each corporations which recommend >40% draw back for each corporations. We’re not there but.
So … Ford and GM may each drop greater than 40% within the case of a U.S. recession. However even when that had been to occur, Ford would come out on prime as a result of … umm … *vaguely gestures to the enterprise portfolio and technique.*
After all, Ford’s newest supply outcomes positive assist Morgan Stanley’s bull case: The corporate introduced that automotive gross sales ticked up 24% final month, serving to offset an 18% lower in Ford’s worthwhile truck gross sales.
The important thing element inside Ford’s announcement, nonetheless, was the sharp development in EV gross sales: Because of the electrical F-150 Lightning and E-Transit van, Ford’s EV gross sales had been up 197% in September … and I’ve an excellent feeling this electrical push is the “technique” that Morgan Stanley loosely alluded to.
What do you assume, Nice Ones? Have you ever tried any Ford EVs? Are you invested in Lamb Weston’s po-tay-toe greatness? Any of y’all invested in Twitter? Let me know within the inbox!
When you have a inventory or investing thought you’d prefer to see Nice Stuff cowl, tell us at: GreatStuffToday@BanyanHill.com.
And in case you have that burning craving that solely extra Nice Stuff can fulfill, it’s best to take a look at our deets right here:
Regards,
Joseph Hargett
Editor, Nice Stuff
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