Official Investing Thread

Discussion in 'The Mainboard' started by Joe Louis, Jul 12, 2010.

  1. Baseballman86

    Baseballman86 Well-Known Member

    Really kicking myself for not buying a MRNA put when the controversy came out. “That’s too expensive” -me, stupidly
     
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  2. burnttatertot

    burnttatertot (๏̯๏)
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    That sounds about right, the margin paperwork happened before the letter and I remember when I was on the phone with the guy he said I had to have a margin account. Not 100% what it all means except they said they'd stop locking my account and I'm margined to a half mil or something.
     
  3. Fusiontegra

    Fusiontegra My life is dope and I do dope shit.#SparedByThanos
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    Interested to see how tomorrow works out with a long weekend.
     
  4. burnttatertot

    burnttatertot (๏̯๏)
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    down
     
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  5. Fusiontegra

    Fusiontegra My life is dope and I do dope shit.#SparedByThanos
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    I fucking hope. Have a couple of puts expiring I need to pay.
     
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  6. pacey

    pacey Well-Known Member
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    Technicals were setting up for down day
     
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  7. ohhaithur

    ohhaithur e-Batman
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    so, up?
     
  8. Stagger Lee

    Stagger Lee Crazy. Sexy. Cool.
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    Futures looking pretty red right now
     
  9. ohhaithur

    ohhaithur e-Batman
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    +300 day confirmed
     
  10. southside

    southside Well-Known Member
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    Yep. Pay day please
     
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  11. HuskerInMiami

    HuskerInMiami Well-Known Member
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    My wife was looking to buy a private optometry practice a few months ago and we pulled the plug a week before closing due to Covid. The sellers reached back out and said they have another offer. I suggested that we just wait it out, but the wife keeps wanting to move forward.

    Any creative ideas for if we were to buy it (financing-wise, making a deal with the seller, etc.)

    Also, is it a bad idea to even think about doing this?
     
  12. gordon bombay

    gordon bombay magician's alliance enthusiast
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    ROKU thoughts? Looking to get in heavy $105-110.
     
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  13. RockHardEnis39

    RockHardEnis39 StEvIS_iN_cBuS/LandlordBob stalks me
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    Seller financing can be a creative way to do it. Have they offered you anything along those lines?
     
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  14. ohhaithur

    ohhaithur e-Batman
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    If you go to the penny stock thread you can halve or double the price of her practice in a day
     
  15. HuskerInMiami

    HuskerInMiami Well-Known Member
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    What do you mean by this?

    We talked about doing something similar to this:
    Example money: Practice costs 500k
    We offered to put $100k down
    To pay $5500/month for 80 months ($440k)

    Are there any other ideas for doing this other than a flat cost? Like 10% of bottom line for 5 years with a minimum of 4,000/month in case the economy is screwed?
     
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  16. ohhaithur

    ohhaithur e-Batman
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    I wanted A and BABA calls ahead of their earnings but couldn't get prices I liked on either

    Would've been another nice coin flip
     
  17. Stagger Lee

    Stagger Lee Crazy. Sexy. Cool.
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    Make part of the purchase price an earnout
     
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  18. Oranjello

    Oranjello Well-Known Member
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    There are lots of ways to do this. Are the sellers going to remain involved in the business, or are you buying them out?
     
  19. southside

    southside Well-Known Member
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    It's all about the deal structure and protecting yourself from risk. Absolutely do seller financing. PM if you want
     
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  20. southside

    southside Well-Known Member
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    I've been buying in and getting smoked. This is a decent entry point
     
  21. Stagger Lee

    Stagger Lee Crazy. Sexy. Cool.
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    Personally I would wait a few days and see what happens with the price. I would target the upper $90s.
     
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  22. Rusty Shackleford

    Rusty Shackleford Dale 1 - Rats 0
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    Why did you pull the plug. Were there problems with financing or were you worried about the businesses ability to recover to pre covid levels?

    I am in a related field and the business is absolutely not worth the same today as it was 3 months ago.
     
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  23. southside

    southside Well-Known Member
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    Oil puts, Euro puts and dollar calls finally starting to pay
     
  24. southside

    southside Well-Known Member
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    China withdrew GDP guidance. Which is hilarious because they make it up every time anyway!
     
  25. HuskerInMiami

    HuskerInMiami Well-Known Member
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    It's a couple and they are both looking to retire. They want(ed) to hand pick who they sell to and loved my wife (they were connected through a mutual friend), but I think they realize it's going to be dicey to sell at all and that they may end up having to close up and get $0.

    We'd be buying them out, but they said they could do a couple month phase in just because they want to say goodbye and also make sure the patients understand they're in good hands. The sellers aren't scumbags like other people we've looked at buying practices from.
     
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  26. HuskerInMiami

    HuskerInMiami Well-Known Member
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    No problems with financing. Moreso worried about Covid and the effects. I didn't think it was a good idea to start a business at the beginning of a pandemic. I would imagine it would recover to pre-covid levels, but who knows. It's in East Boca, so high end clientele.
     
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  27. Rusty Shackleford

    Rusty Shackleford Dale 1 - Rats 0
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    Personally I would want to see how the numbers look a month into being open. If it is higher end and you are able to charge more per visit then you might not be hit as hard with the decreased volume that will he needed for social distancing.

    It is going to be hard to come up with some sort of creative package to purchase the office. Maybe tie a portion of the price into revenue. If you hit 90% of historical revenue for the rest of the year you owe them x. If it is 75% of historical revenue you owe them 1/2X etc.

    Personally I would just try to negotiate a lower purchase price so things aren’t as messy.
     
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  28. HuskerInMiami

    HuskerInMiami Well-Known Member
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    This is what I suggested last night. I asked that they not retire for at least 3 months so we can see how it rebounds. They did not like that.
     
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  29. Stagger Lee

    Stagger Lee Crazy. Sexy. Cool.
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    HuskerInMiami, I'm a corporate/tax attorney and do M&A work. Feel free to PM me.
     
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  30. southside

    southside Well-Known Member
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    ^^Also you need a lawyer
     
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  31. Rusty Shackleford

    Rusty Shackleford Dale 1 - Rats 0
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    They may be trying to pressure you into going through with the sale. I wouldn’t be shocked if they made up another offer. I feel for them though because they could not of picked a worse time to sell a business that requires face to face interaction.

    IMO the most important part is making sure it cash flows. The price needs to reflect the level of debt that you can service. If it isn’t as profitable as before the pandemic then you end up working for free after making your loan payment.
     
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  32. texasraider

    texasraider thanks
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    Bought some 5/29 $110 Roku calls
     
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  33. Fusiontegra

    Fusiontegra My life is dope and I do dope shit.#SparedByThanos
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    On the topic of wives, mine's mother just passes and left her with an IRA of a pretty good amount. Financial guy at the credit union that holds it is setting her up a beneficiary account to put the total into, but she's gotta clear it out within 10 years. It's large enough that rolling the yearly max into a roth will leave a pretty good amount still in there after 10 years.

    If we don't plan on spending any lump sum of it, what's the best way to handle this, and give the government the least amount?
     
  34. billdozer

    billdozer Well-Known Member
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    I'm sure others will have input, but I would make sure you are maxing out pretax 401ks and HSAs to lower your income, and then I would take as much out as you can to keep you in the same tax bracket each year before the tax cuts expire.
     
  35. dblplay1212

    dblplay1212 Well-Known Member
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    https://www.cnn.com/2020/05/22/investing/moderna-coronavirus-vaccine-stock-sales/index.html

    Lorence Kim, Moderna's chief financial officer, exercised 241,000 options for $3 million on Monday, filings show. He then immediately sold them for $19.8 million, creating a profit of $16.8 million.

    The next day, Tal Zaks, Moderna's chief medical officer, spent $1.5 million to exercise options. He immediately sold the shares for $9.77 million, triggering a profit of $8.2 million.

    Although the fortuitous timing of the transactions may raise eyebrows, Charles Whitehead, professor at Cornell Law School, said the stock sales did not appear to raise any legal red flags.

    :iseeu:
     
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  36. Stagger Lee

    Stagger Lee Crazy. Sexy. Cool.
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    Are you implying that should be illegal?
     
  37. Stagger Lee

    Stagger Lee Crazy. Sexy. Cool.
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    I was definitely not expecting that end-of-day rally.
     
  38. dblplay1212

    dblplay1212 Well-Known Member
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    I'm implying that I don't think it was 100% on the up and up.
     
  39. ohhaithur

    ohhaithur e-Batman
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    Considering why it increased so much, it's worth questioning
     
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  40. Stagger Lee

    Stagger Lee Crazy. Sexy. Cool.
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    Why?
     
  41. dblplay1212

    dblplay1212 Well-Known Member
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    A CFO turned $3m into $20m based on a news release put out by his company, a news release that was later shown to be based on little info. You choose to think that was just luck? Cool. I don't.
     
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  42. dblplay1212

    dblplay1212 Well-Known Member
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    Execs buy options

    Company puts out a news release pimping their virus vaccine

    Stock skyrockets

    Execs sell

    Scientists say "Eh there's really not enough here to say the vaccine is worth a shit or not"

    Stock craters
     
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  43. Stagger Lee

    Stagger Lee Crazy. Sexy. Cool.
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    I didn't read the article the first go round -- and didn't realize the sale was on the heels of a press release. It isn't a good look, but isn't necessarily illegal. I'm surprised the company didn't issue a blackout barring all insider sales for a specified period after the release. In any event, it's definitely a risk for the officer to do that.
     
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  44. tjosu

    tjosu This is kind of like the breakfast club, huh?
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    They didn’t buy options, these are stock options that all execs get as compensation
     
  45. ohhaithur

    ohhaithur e-Batman
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    Probably a feature, not a glitch
     
  46. tjosu

    tjosu This is kind of like the breakfast club, huh?
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    It definitely looks bad but it also makes a lot of sense that they’d cash in options when the stock hits an all time high
     
  47. Stagger Lee

    Stagger Lee Crazy. Sexy. Cool.
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    To be fair, they bought the shares when they exercised and then sold them. So there were two potential insider transactions. tjosu
     
  48. dblplay1212

    dblplay1212 Well-Known Member
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  49. Stagger Lee

    Stagger Lee Crazy. Sexy. Cool.
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    That reminds me, I need to buy some orange futures on Monday
     
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  50. BP

    BP Bout to Regulate.
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    Even if there was inside trading, it's not like they would get in any trouble. At worst they'd step down and get a million dollar severance. Politicians are doing it with 0 repercussions, besides having to step down from a committee.