Emotional Investor
10-21

$SOFI 20260116 5.0 CALL$ Ok so heres a stock i have not talked about. Its rallied alot was at $8 now over $10. So im crazy for getting in at $10 right?

Earnings are close, end of this week but the street still has not factored in the recent $2 billion deal with fortress finance. Once they get round to crunching the numbers, valuations will seriously poop. 

But thats the tip of the iceberg. I have been far too slow to get on this stock. Been doing my DD. I invest in quite a few bank stocks. Banks are always slow and very cautious. But SoFI represents the future of banking, and im now totally on board. Sofi has gone sideways for about 2 years, now all of a sudden its rocketing. But I believe this is early days. Why?

Well, its gone from $8 to $10 because it had to be at $8. there is no longer a necessity for it to be held below $8. Now it will go to at least $14.50, why? Because it has to be at $14.50. like how do i know this? Im not a broker, im not an institution, im just a tiny retail investor. But i am the emotional investor. Things don't happen unless some bigs stand to make serious money by making things happen. Are you confused, cause you should be. 

SoFI recently raised... um don't have the numbers in front of me, but i think about $800 million in new debt, the deal, and i have to simplify here, well borrow $800 mil, that can be repaid with $$$ and or stock. Ouch shareholder dilution! Actually no. The deal involved a broker or brokers writing covered calls to sofi, this is not an on market call, its a call written for sofi to buy back its own on market shares. So for the brokers to make money the price had to be below $8, and when SoFI exercises there options the brokers will get... Well lets just say they can go super yacht shopping.

But wait, theres more, why will the stock go to $14.50? Because it has too. Then sofi can excise the call options and pass them on to the institutions, pay the $800 mil back, plus all the interest and fees, and still bank a profit.

Why will this happen? Because the brokers make a tonn of money, the institutions make a tonn of money and sofi gets a tonn of working capital at no cost and pays it back in under a year. 

The only loosers are the short sellers, 18% shorted last time I looked, they are helping to push the price to $14.50 cause... well they are screwed. cause covering their calls They will loose billions. 

Anyways, i have oversimplified, because I think less than 5% of people understand this, and alot of my numbers are off, because, well i still have alot of dd to do on sofi. But on $rklb i know all the numbers. To my knowledge these are the only two companies that have done this, very few understand it, i have been reluctant to share it because well... maybe i know to much. Then again, i mite be talking total bs. I guess time will tell.

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