RE:Thought experiment: BB raises $365m cash July 15, 2020It's called Quantitative easing on steroids.. all stocks went up.. nothing to do with yaschs reasons . less
Yasch22 wrote: Just imagine ... it's July 15. Share price is bouncing between $4.60 and $4.70. That's a lot better than the recent all-time low of $2.85, but the sp looks to be stuck long-term in a $4.50 to $5.20 groove.
No one on the Board of Directors or from the C-Suite knows exactly how Covid-19 is going to play out. All they know is that BB has another year to go on a very rough patch, for two main reasons:
(a) IoT (reduced car sales) will have its worst year in a decade
(b) Cybersecurity is only treading water because it didn't have single-client EDR, as did Crowdstrike, Carbon Black, and SentinelOne.
A few regulars at sites like Stockhouse are practically begging for Chen to sell the company, as they all want to get out of their rotten investment at $7 or $8 instead of being stuck for another long year at $5 or worse. But of course, no one important at BB actually pays attention to Stockhouse. What the company brass is really seriously worried about is that guys like Dorsey Gardner are picking up big chunks of shares.
So, all of that information sets the stage for this "imagination experiment." Put your July 15 clothes on, fire up your computer, and check the share prices on your watchlist. Hot damn on a hot morning! BB is still stuck at $4.60.
At the end of the day, you see this item of news: "Fairfax to buy 55 million shares of BB at $6 per share, for total of $330m. This will maintain FF's long-term ownership of BB stock at 16.5%."
Now, can you hear anyone saying dumb sh*t like, "That's so unfair ... Watsa just got a sweetheart deal ... Just watch, he's going to steal the company from us at a ridiculously low price!"
Another question: how many of you were SO CONFIDENT that BB was going to rise from $4.60 to $10 just six months later -- on January 15 (before the Reddit bump) that you backed up the truck?