#TWTR acquisition, the chronicle of an announced Drama.
"Musk 'MAY CLOSE' the deal on Friday". I love the wording they use, MAY CLOSE. Of course he wants to close the deal so he avoids going to Court. BUT, the article has a misleading wording, just like the "letter" he filed with the SEC when he reignited the TWTR acquisition controversy, to buy but not to commit to buy TWTR. He didn't commit to anything, and here he is no committing to anything. This looks more like a classic PUMP and DUMP schema.
As soon as the news was aired there was a spike in the intraday trading volume, just to start fading, never even scratching the elusive $5 4.20 target price. This looks like someone is just using this to exit their long position and go short.
The history of this DRAMA.
Elon Musk started a sneak share accumulation when TWTR went down and bought 73 M shares at a 36/share average price.
TWTR Accumulation:
Shares: 73 M shares
Avg Price 36/share
Pct Total shares: 9.2%
Total accumulation committed capital:
73M sh 36/sh = $2.64 B
Avg Selling Price if today ==>
73M sh 51/sh = $3.72 B
Profit ==> ~ $1.08 B
If TWTR goes to the elusive $54.20 price after earnings that would be a ceiling price. Elon is not going to pay more than the target price he already offered, he could take advantage of the situation, cash out 1B in profit from his original position and make an agreement with TWTR on Friday, but not an acquisition with the original target price.
Musk and TWTR committed to 11B against whoever chickened first. That's the profit in case Musk withdraws. If they go to court and Musk Wins, he could have already sold his holdings after Earnings or during the time he reignited the rumor and he would have been able to make 11B profit plus 11B from the Twitter deal. He aims at making 22B
Bottom line, the reaction of the Market only says that the high volume with an elusive target price is a bearish Action Price
On the other hand look at
TSLA, it reached 221.75 by the time of publishing this article. Someone is pumping and dumping TWTR and accumulating on TSLA. Just saying.
Ref: Musk's Tesla stock sale windfall dwarfs Twitter loss
As soon as the news was aired there was a spike in the intraday trading volume, just to start fading, never even scratching the elusive $5 4.20 target price. This looks like someone is just using this to exit their long position and go short.
The history of this DRAMA.
Elon Musk started a sneak share accumulation when TWTR went down and bought 73 M shares at a 36/share average price.
TWTR Accumulation:
Shares: 73 M shares
Avg Price 36/share
Pct Total shares: 9.2%
Total accumulation committed capital:
73M sh 36/sh = $2.64 B
Avg Selling Price if today ==>
73M sh 51/sh = $3.72 B
Profit ==> ~ $1.08 B
If TWTR goes to the elusive $54.20 price after earnings that would be a ceiling price. Elon is not going to pay more than the target price he already offered, he could take advantage of the situation, cash out 1B in profit from his original position and make an agreement with TWTR on Friday, but not an acquisition with the original target price.
Musk and TWTR committed to 11B against whoever chickened first. That's the profit in case Musk withdraws. If they go to court and Musk Wins, he could have already sold his holdings after Earnings or during the time he reignited the rumor and he would have been able to make 11B profit plus 11B from the Twitter deal. He aims at making 22B
Bottom line, the reaction of the Market only says that the high volume with an elusive target price is a bearish Action Price
On the other hand look at
TSLA, it reached 221.75 by the time of publishing this article. Someone is pumping and dumping TWTR and accumulating on TSLA. Just saying.Ref: Musk's Tesla stock sale windfall dwarfs Twitter loss
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