Emotional Investor
10-29

$SoFi Technologies Inc.(SOFI)$ Tomorrow will be very very interesting as SoFi presents their earnings pre market. As usual ill be late to the market as it opens at 1am New Zealand time. By 5am nz time ill be up, so i guess i'll see what's unfolding Then. The past would suggest it will be down regardless of how good the results are, but the last few times they had not secured an xtra $2 billion in funds to lend out to their clients.

But here's another thought. If you follow me, you know I think $Tesla Motors(TSLA)$ and Elon in particular are total BS. The products are crap, and elon, the teflon don, makes promise after promise that he doesn't deliver on... he lies and gets away with it time and time again. so putting my emotional hat on i have to consider why.

Why? Insane amounts of money. Not just him, but all his backers. They have no choice, they have invested way too much to let elon fail. If Elon fails they fail, so they have no choice. Keep throwing money at him... even if he invents a square wheel, they must say its the greatest innovation ever.

But lets take a lesson from this as retail investors. There are alot of businesses out there that can and will perform. But which ones fulfill the tesla criteria of... this must happen, the price must be the price, so that everyone makes money.

Well the first one is SoFi, it must be worth $14.50, why? Because at that price they can excise their capped calls and pay back their $850 million dollar loan from the proceeds. The broker that wrote the call makes money, the lenders make money, and SoFi makes money. and shareholders are not diluted because there is no need to issue new stock, because its all done with shares that are on the market. So everyone wins... well everyone except the shorts, they loose billions. Hence, expect some total nonsense in the near term as certain investors try to drive the price down with misleading information. But the reality is... SoFi is going to $14.50.

Then there is another stock... $Rocket Lab USA, Inc.(RKLB)$ same deal. $350 million borrowed with a capped call. For everyone to make money the price has to hold above $9.50 for over 40 days if i recall correctly. Its pretty much achieved that, so expect rklb to magically repay their $350 million loan before SoFi does.

$Uber(UBER)$  did the same thing I believe, but i dont have any DD on them so no comment.

So in conclusion... follow the money. Invest in companies that must go up because the bigs have a serious incentive to make them go up. But don't just invest in it because of that alone. Invest because you believe in it. I never loose sleep wishing i was in tesla or uber. And a wake up every trading day excited about rklb and sofi, trying to figure out how i can increase my investment 

Happy trading my friends 

@MillionaireTiger  @TigerWire  @Tiger_chat  @Meme_Tiger  @SPACE ROCKET  

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Comments

  • a9032
    10-29
    a9032
    Great analysis! Follow the money and invest wisely. Excited for tomorrow's earnings! [Happy]
  • moxieoo
    10-29
    moxieoo
    I admire your enthusiasm and excitement for SOFI and RKLB.
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