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Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB

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11–20 of 222 posts

Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB

#11
post #7

Roku stock is down 2.29$ after hours. I wonder if there is any money to be made shorting companies wrapped up in this mess.

Only if you are faster to react to the news than the market. It would help to have a model of how much the company’s value is affected, so you can evaluate whether it’s priced in.

Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB

#12
post #7

Roku stock is down 2.29$ after hours. I wonder if there is any money to be made shorting companies wrapped up in this mess.

Not investing advice, but usually "The Money to Be Made" is found in non-obvious/non-knee-jerk reactions.

Roku wasn't priced the way it was because of the cash on its balance sheet, it was/is priced on earnings, for example.

Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB

#13
post #6

Earlier quoted context omitted.

Only if it's material to the company.

How long do they have to file the 8-k? I own stock in a few high tech very silicon valley based companies that aren’t mega tech. A little concerned.

form 8-k itself seems to say 4 days or less: https://www.sec.gov/about/forms/form8-k.pdf

Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB

#14

Does every public company need to file such a form by some time? Could we use these forms and public companies got get some sense of the contagion risk?

There are some companies that are filing 8-Ks just to announce they do not have any holdings in SVB, such as FuboTV: https://www.sec.gov/Archives/edgar/data/1484769/000149315223...

Others are indeed disclosing that they have some holdings in SVB, such as Roblox at 5%: https://www.sec.gov/Archives/edgar/data/1315098/000110465923...

Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB

#15
To save people a quick search, here is part of the Wikipedia definition of Form 8-K: "...a very broad form used to notify investors in United States public companies of specified events that may be important to shareholders or the United States Securities and Exchange Commission."

Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB

#16
post #13

Earlier quoted context omitted.

How long do they have to file the 8-k? I own stock in a few high tech very silicon valley based companies that aren’t mega tech. A little concerned.

form 8-k itself seems to say 4 days or less: https://www.sec.gov/about/forms/form8-k.pdf

Great, so we can expect to see a flurry of 8-ks come Monday. In the wise words of South Park. “Anddddddddd… It’s gone!”

Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB

#18
post #6

Does every public company need to file such a form by some time? Could we use these forms and public companies got get some sense of the contagion risk?

Only if it's material to the company.

Although some are filing proactively to say that they're not exposed.[1]

[1]: https://twitter.com/footnoted/status/1634302156303134720

Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB

#19
post #7

Roku stock is down 2.29$ after hours. I wonder if there is any money to be made shorting companies wrapped up in this mess.

Which is barely 4% (its not even at the price it was a month ago) Which means its not a big deal according to investors

Re: Roku filed an 8-K saying that of its $1.9B of cash, $487M is stuck at SVB

#20
I was astonished that Roku has half a billion in cash.

Then I learned this was only 26% of its cash reserves.

I thought cash was considered wasteful because it loses value via inflation.

Has the thinking changed? Can someone knowledgeable please help me understand this?

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