To The Moon

Tried to buy-the-dip thinking that Credit Suisse (CS) won’t collapse because you missed my 🚨Red Flag 🚩 post on 16/3❓ 😖Stuck With Credit Suisse Shares & Don’t Want to Cut Loss❓Fret not, this post aims to provide a possible escape route without you having to ✂️cut loss. (Disclaimer: ✂️loss is a commonly recommended investment strategy. I’m not asking you not to ✂️ but rather I’m just providing an analysis of an alternative option. Please DYODD).

🕵🏻‍♀️🕵🏻‍♂️What You Need To Know About The CS Takeover Deal BY UBS:

(1) CS closed at $2.01 on 17/3 (Fri) but crashed💥💥💥 52.99% to close at $0.9449 & 🛝🛝🛝 another 4.01% in post-market trading to close at $0.907🔥🔥🥵🔥🔥after UBS said it would buy its fellow Swiss bank for a lowball price of 3 billion Swiss francs ($3.25 billion), well below market value. The shares traded at about the level they are valued at, which is to nobody’s surprise🐻🐻🐻

(2) In a bid to stop more escalation of the 🏦 Crisis, Swiss regulators orchestrated the purchase. The takeover was made possible after the Swiss federal government, the Swiss Financial Market Supervisory Authority FINMA & the Swiss National Bank agreed to support the deal.

➡️ An £8bn insurance scheme to protect UBS from losses was described by Karin Keller-Sutter, the Swiss finance minister, as “like a backstop and insurance that only comes into effect if certain losses occur”.

❣️ For once, we have 100% assurance that this takeover deal will DEFINITELY close smoothly.

(3) The transaction reinforces UBS’s position as the leading universal bank in Switzerland🇨🇭 The combined businesses will be a leading asset manager in Europe, with invested assets of more than USD 1.5 trillion, so investing in UBS via CS may not be a bad option🤷🏻‍♀️🤷🏻‍♀️🤷🏻‍♀️

➡️ UBS Chief Executive Officer Ralph Hamers said: “Bringing UBS and Credit Suisse together will build on UBS’s strengths and further enhance our ability to serve our clients globally and deepen our best-in-class capabilities. The combination supports our growth ambitions in the Americas and Asia while adding scale to our business in Europe, and we look forward to welcoming our new clients and colleagues across the world in the coming weeks.”

(4) Under the terms of the all-share transaction, Credit Suisse shareholders will receive 1 UBS share for every 22.48 Credit Suisse shares held.

⭐️⭐️⭐️ Based on UBS’s closing price of $18.80 on 20/3, that values CS at about $0.8363 ($18.80/22.48).

⭐️⭐️⭐️ By using current UBS price divided by 22.48, we can determine a “fair price” & maybe even profitable price of CS😉😉😉

❗️So if you’re stuck With CS Shares & don’t wish to ✂️ loss😖😖😖, buying more shares to average down to the “fair price” this could be a viable option for you🤗🥳🎉

🚨🚨🚨 However, any 🐯🐯🐯 thinking of averaging down on CS or thinking if it’s a 👍 deal to buy CS shares in exchange for UBS shares, might want to consider that UBS 💥💥💥 from an all time high of $60+ during the global financial crisis 2008-2009 & itself needed the 🇨🇭government to bail them out😅 Looks like they’re just returning a favour to acquire CS😂😂😂

⚠️⚠️⚠️ Since 2009, UBS has not recovered close to it’s all time-high⁉️ The highest it’s been is $20.06 in July 2015 & the lowest is $8.16 in March 2020😅😅😅 so unless you’re prepared too hold long-term to break even, buying CS shares doesn’t seem like a wise investing decision😉

👍👍 What’s safe to know is that if UBS gets into trouble in the future, we know that the 🇨🇭government will bail them out again😂😂😂

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