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SpaceX bond worth 10% less than issue price – heading for junk bond status

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Re: SpaceX bond worth 10% less than issue price – heading for junk bond status

#171

Post by stackghost »

quickthrowman wrote: post #115
stackghost wrote: post #106

Earlier quoted context omitted.

Index funds, for starters.

I don’t even have access to a NASDAQ fund in my 401K. You have to go out of your way to buy the NASDAQ 100, QQQ and /NQ or /MNQ futures are the most popular instruments for getting exposure. I have a tiny minute slice of SPCX from owning VTI total market ETF but my 401K holds no SpaceX.

>QQQ and /NQ or /MNQ futures are the most popular instruments for getting exposure.

QQQ tracks the Nasdaq 100. It's an index fund. If the index includes a new ticker, then QQQ has to buy it.

Buying QQQ doesn't seem like going out of one's way. I don't understand your comment. "ETFs and chill" is a very common investment strategy.

Re: SpaceX bond worth 10% less than issue price – heading for junk bond status

#173

Post by positr0n »

runarberg wrote: post #113
formvoltron wrote: post #48

Earlier quoted context omitted.

nah the very worst thing about the spacex ipo is that schwab won't allow me to short it. has nothing to do with the recency of the issue. today i shorted some skhy when i realized it's trading about 30% over the Korean share price (I could be wrong about that)

I for one am glad that you were not allowed to short SpaceX. People gaming the market for their own profits are the worst kind of exploiters and swindlers. You contribute absolutely nothing while siphoning the profits that workers make, lowering the salaries of everyone that actually works for a living. Note this has nothing to do with my feelings about SpaceX. I am Elon hater nr. 1 and hope SpaceX burns to dust, I o…

How is shorting a stock gaming the market?

You feel a stock is overvalued and you short it. You feel a stock is undervalued and you buy it. What's the difference?

Re: SpaceX bond worth 10% less than issue price – heading for junk bond status

#175

Post by enopod_ »

Sol- wrote: post #47

Isn't it realistically only worth talking about SpaceX stock a few years out? The random walk the stock will do after an IPO seems very uninformative.

This bit is not about the stock, it‘s about bonds. They made about $70B (?) in the IPO and now issued bonds for about $25B. This debt is rated at junk level now.

Re: SpaceX bond worth 10% less than issue price – heading for junk bond status

#176

Post by positr0n »

tyre wrote: post #62
formvoltron wrote: post #48

Earlier quoted context omitted.

nah the very worst thing about the spacex ipo is that schwab won't allow me to short it. has nothing to do with the recency of the issue. today i shorted some skhy when i realized it's trading about 30% over the Korean share price (I could be wrong about that)

I'm not an investor in SpaceX but I don't think shorting stocks at IPO should be allowed. The market should be given time to settle on a price, and it's unlikely that anyone needs to short it on day 1 for hedging. It's purely price speculation. Yeah, I know why people _want to_ (betting), but it doesn't serve a broader economic purpose.

The market will more efficiently settle on a price if market participants can push the price up (buying) and push the price down (shorting).

Re: SpaceX bond worth 10% less than issue price – heading for junk bond status

#177

Post by toddmorey »

swingandamiss wrote: post #119

[flagged]

I'm very pro tech. Because I'm pro tech, I honestly wish there were more ethical companies in the space. It can be hard to find US tech companies to cheer for. My main business-related challenge with Elon is his public predictions are so wildly ungrounded. Skepticism is absolutely warranted.

Two things:

  - You can cheer for his companies and technologies but against these financial maneuverings because they risk genuine harm & setback to the industry

  - I stopped asking for people to put politics aside in support of these companies when I realized Elon couldn't put politics aside to support these companies.

Re: SpaceX bond worth 10% less than issue price – heading for junk bond status

#179

Post by inigyou »

lucd wrote: post #41

The worst about the SpaceX IPO is Nasdaq changing their inclusion rules for the Nasdaq 100. The index fast-tracked SpaceX stock for inclusion 15 days after the IPO, instead of the normal three-month seasoning period. They also changed its 10% minimum float rule to a 3x weighting boost for low-float stockss. So many people will unwillingly and prematurely invest into SpaceX, before it has any chance to discover its re…

Worst, if you're a Nasdaq 100 ETF investor. Best, if you were a SpaceX private investor. All a matter of perspective.

Re: SpaceX bond worth 10% less than issue price – heading for junk bond status

#180

Post by inigyou »

rconti wrote: post #141
quickthrowman wrote: post #114

Earlier quoted context omitted.

The S&P committee never said they would. Space X asked and the committee said no. They should not have asked.

#1 rule of sales. If someone is trying to sell you something, you _probably_ don't want it. Eg, they need the sale more than you do. The very fact that they were asking the question is such a huge red flag.

Them needing it more than you doesn't mean you don't need it too.

Bought an air mattress recently. Way better than a sleeping bag on the ground, even though I can also manage that.

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