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SpaceX IPO Scandal

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Re: SpaceX IPO Scandal

#11

Post by kmbfjr »

johnbarron wrote: post #2

At 25:48 you have the explanation for the (multiple) tricks: https://youtu.be/8rS3fTbC7TE?t=1548 This Musk guy makes Ponzi look like the Pope.You almost have to admire it the way you admire a raccoon breaking into a triple locked trash can at 2 AM. You are furious. You know you should be furious. But part of you is at the window wondering "how did he do that?". As you will see below, this raccoon is getting the trash…

I would think Fidelity, Vanguard et al are going to eat Musk for lunch.

It’ll take a decade.

Re: SpaceX IPO Scandal

#12

Post by wcoenen »

Veserv wrote: post #8

Suppose you had a index of 100 companys each with a market cap of 1 G$ for a total of 100 G$. You have passive investors owning 20 G$ of that index, amounting to 20% of the total, 20% of each company, and 200 M$ per company. You then rotate out a company for a new one. The index is still 100 G$, but to match the index you are contractually required to sell your 20% ownership of the old company and are contractually r…

It seems the S&P 500 indices only take the free-float shares into account when calculating weights:

S&P DJI’s market cap-weighted indices are float-adjusted – the number of shares outstanding is reduced to exclude closely held shares from the index calculation because such shares are not available to investors.

page 6 of https://www.spglobal.com/spdji/en/documents/methodologies/me...

Re: SpaceX IPO Scandal

#13

Post by Veserv »

wcoenen wrote: post #12
Veserv wrote: post #8

Suppose you had a index of 100 companys each with a market cap of 1 G$ for a total of 100 G$. You have passive investors owning 20 G$ of that index, amounting to 20% of the total, 20% of each company, and 200 M$ per company. You then rotate out a company for a new one. The index is still 100 G$, but to match the index you are contractually required to sell your 20% ownership of the old company and are contractually r…

It seems the S&P 500 indices only take the free-float shares into account when calculating weights: S&P DJI’s market cap-weighted indices are float-adjusted – the number of shares outstanding is reduced to exclude closely held shares from the index calculation because such shares are not available to investors. page 6 of https://www.spglobal.com/spdji/en/documents/methodologies/me...

Yes, but not the Nasdaq-100 [1] which added the "Fast Entry" rule listed right there in section 2 literally this February because SpaceX is demanding immediate inclusion into the Nasdaq-100 as a condition for listing on the Nasdaq instead of the NYSE.

[1] https://indexes.nasdaqomx.com/docs/NDX_Consultation-February... Section 3

Re: SpaceX IPO Scandal

#14

Post by pinkmuffinere »

Not a comment on this particular content, but Patrick Boyle is great, I highly recommend his content in general! He's got tons of experience in finance, and (from what I can tell), understands his topics in depth. He offers very measured views about stuff, tending not to be caught up in zeitgeist one way or the other.

Re: SpaceX IPO Scandal

#15

Post by DougN7 »

bko wrote: post #6
johnbarron wrote: post #2

At 25:48 you have the explanation for the (multiple) tricks: https://youtu.be/8rS3fTbC7TE?t=1548 This Musk guy makes Ponzi look like the Pope.You almost have to admire it the way you admire a raccoon breaking into a triple locked trash can at 2 AM. You are furious. You know you should be furious. But part of you is at the window wondering "how did he do that?". As you will see below, this raccoon is getting the trash…

> This Musk guy makes Ponzi look like the Pope I don't get it. He owns some of the companies out right and has no problem securing financing. Who is he screwing over? > First they only release 5% to 10% to create an artificially inflated price. Its called the low float strategy... Why would you float more than you reasonably would need. What's the upside of saying "we're worth X" due to a low float? Doesn't really bu…

Yeah, you’ve shown it’s great to be a billionaire. Slow-clap. What you’re conveniently skirting around is all the little people’s retirement savings being transferred to the billionaires by artificially forcing the price high.

Re: SpaceX IPO Scandal

#16

Post by tnel77 »

johnbarron wrote: post #2

At 25:48 you have the explanation for the (multiple) tricks: https://youtu.be/8rS3fTbC7TE?t=1548 This Musk guy makes Ponzi look like the Pope.You almost have to admire it the way you admire a raccoon breaking into a triple locked trash can at 2 AM. You are furious. You know you should be furious. But part of you is at the window wondering "how did he do that?". As you will see below, this raccoon is getting the trash…

Not saying anything positive about Musk, but what is the expected IPO price (I’m more curious about the alleged market cap)? If this scheme allows them to IPO at a valuation of $10T, I would be upset. If the valuation was something like $500B to $1T, that actually seems somewhat reasonable and likely to return value long-term as they are the clear leaders of space (for the time being at least).

Re: SpaceX IPO Scandal

#17

Post by DougN7 »

TimesOldRoman wrote: post #3

What scandal? Inflating share prices is standard fare.

Forcing everyone’s retirement funds to buy (at the artificially high and unsustainable price) is the scandal. Clever ploy to move more money from the plebes to the billionaires.

Re: SpaceX IPO Scandal

#18

Post by el_nahual »

bko wrote: post #6
johnbarron wrote: post #2

At 25:48 you have the explanation for the (multiple) tricks: https://youtu.be/8rS3fTbC7TE?t=1548 This Musk guy makes Ponzi look like the Pope.You almost have to admire it the way you admire a raccoon breaking into a triple locked trash can at 2 AM. You are furious. You know you should be furious. But part of you is at the window wondering "how did he do that?". As you will see below, this raccoon is getting the trash…

> This Musk guy makes Ponzi look like the Pope I don't get it. He owns some of the companies out right and has no problem securing financing. Who is he screwing over? > First they only release 5% to 10% to create an artificially inflated price. Its called the low float strategy... Why would you float more than you reasonably would need. What's the upside of saying "we're worth X" due to a low float? Doesn't really bu…

15B in revenue is less than what AirPods sell in 6 months.

It's less revenue than Spotify.

It's nowhere near what should be necessary for a company to be "one one the most valuable companies in the world."

Elon knows this. He knows that the 1.5 T "valuation" is nonsense. The market for space launches is quite simply not that big. How many more Starlinks does the world need? What would you do if I gifted you a satellite?

The SpaceX valuation is predicted on hype for scientifically & economically illiterate ideas like "data centers in space."

Elon knows this. He knows that these indexing rules are the only way to keep the hype going and avoid a space-WeWork failed IPO.

Re: SpaceX IPO Scandal

#19

Post by petterroea »

pinkmuffinere wrote: post #14

Not a comment on this particular content, but Patrick Boyle is great, I highly recommend his content in general! He's got tons of experience in finance, and (from what I can tell), understands his topics in depth. He offers very measured views about stuff, tending not to be caught up in zeitgeist one way or the other.

I just love how his dry delivery makes his jokes hit harder

Re: SpaceX IPO Scandal

#20

Post by suralind »

Musk is the ultimate conman. I admire the work that SpaceX is doing, but Elon just plays the market, every single time. I don’t know why he’s allowed to do that and why people still fall for his promises.

This SpaceX thing will make him 2 trillion guy, not the 1 trillion he’s promised to be.

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