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

#41

Post by frankchn »

zamadatix wrote: post #29
k8t wrote: post #26

This is not a perfect analysis, but: - Roku has 487M in SVB - After the 8-K released, Roku lost 323M in market cap Basically, the market is expecting around 30c of value recouped for every dollar inside of SVB. (note: I know this analysis isn't perfect, but it gives a rough idea)

The market expects the bank going under to impact Roku by that much expected value. That's very different than saying the market expects a certain percentage of money to be returned in the end and it's not clear why this is supposed to give even a ballpark estimate of the expected recoup. After all the share price has way more to it than what the current assets come to. It's also very likely the market changes its mi…

The drop is in the aftermarket immediately after the 8-K release, so I think we can attribute most of it to the market's gut reaction to this piece of news and not the broader SVB impact (which would have occurred during market hours).

Agree that the market might change its mind quickly, especially if estimated recoveries are projected to be high or the depositors completely made whole.

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

#42

Post by AdamJacobMuller »

__derek__ wrote: post #18
yasp wrote: post #6

Earlier quoted context omitted.

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

seems with such a public and large failure that it's not unreasonable to say that not being affected is material information as well.

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

#43

Post by Eduard »

This shows the latest 8-K filings towards SEC: https://www.sec.gov/cgi-bin/browse-edgar?company=&CIK=&type=...

As of this writing (2023-03-10), there are already 10 or so filings today mentioning SVB.

Atom/RSS feed: https://www.sec.gov/cgi-bin/browse-edgar?action=getcurrent&C...

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

#44

Post by FormerBandmate »

k8t wrote: post #26

This is not a perfect analysis, but: - Roku has 487M in SVB - After the 8-K released, Roku lost 323M in market cap Basically, the market is expecting around 30c of value recouped for every dollar inside of SVB. (note: I know this analysis isn't perfect, but it gives a rough idea)

I would bet it’s 80 cents on the dollar

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

#45

Post by kypro »

reactspa wrote: post #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?

You need some amount of cash for payroll, POs, etc.

The rest is then generally held in "cash equivalents" such as short-dated government bonds. The latter has yield to offset inflation. But basically "cash" is being used quite loosely here.

From the 8-K:

> The Company has total cash and cash equivalents of approximately $1.9 billion as of March 10, 2023. Approximately $487 million is held at SVB, which represents approximately 26% of the Company’s cash and cash equivalents balance as of March 10, 2023.

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

#46

Post by AdamJacobMuller »

ycstohley wrote: post #33
Traubenfuchs wrote: post #17

Could someone please explain what SVB is and what money being stuck there means? Why do companies put money there? For what reason would a company file, or have to file, an 8-K?

[flagged]

rude.

suggesting he must have been hiding under a rock for the past 2 days to miss the news is funny because it pokes fun at just how prolific the news on this has been in the past 48h, but, the shoelaces comment is implying that he's stupid for not seeing the news.

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

#47

Post by costco »

Where are the people offering to buy SVB claims for 60-70 cents on the dollar? This happened with FTX and traditional bank runs like in [It's a Wonderful Life](https://www.youtube.com/watch?v=iPkJH6BT7dM&t=99s). Maybe people are waiting to see how large the FDIC advances will be.

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

#48

Post by slaymaker1907 »

aynyc wrote: post #38

I think this might be the beginning. I think various funds (public or private) which have capitals stored in SVB is gonna be in a lot of trouble. Every investment firms are probably scanning their portfolios and business cash lines to see how much they are impacted by SVB and similar banks. I wouldn't be surprised to see a run on banks in the next few days/weeks if additional rumors (true or not) come out. Edit: didn…

After the GFC, banks and investment firms had to get really good at computing risk and impact from events like this so it probably won’t be too long.

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

#49

Post by AdamJacobMuller »

aynyc wrote: post #38

I think this might be the beginning. I think various funds (public or private) which have capitals stored in SVB is gonna be in a lot of trouble. Every investment firms are probably scanning their portfolios and business cash lines to see how much they are impacted by SVB and similar banks. I wouldn't be surprised to see a run on banks in the next few days/weeks if additional rumors (true or not) come out. Edit: didn…

Monday will tell. FDIC will have done enough rough accounting to roughly get an idea of how much money large depositors will actually get. It's also entirely possible a deal gets worked out over the weekend that results in all cash depositors being whole at a new bank. Monday will tell.

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

#50

Post by carstenhag »

iammiles wrote: post #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."

And SVB means Silicon Valley Bank, which was shut down by a regulatory body some days ago: https://www.cnbc.com/2023/03/10/silicon-valley-investors-and...

(seriously HN, we non-US people have never heard of your terms)

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