Pins
$PINS Worst Looks To Be OverThe news today that 4.68m shares of $PINS were sold at $25 removes an overhang on the stock. Yesterday's bull hammer further signals that the worst might be over for the stock.
Pinterest had been dropping as the lockup has expired. With just 4.68m shares sold, this could be a sign that more stock won't hit the market.
Pinterest, Inc. provides a visual discovery engine that helps users to discover ideas for various projects and interests worldwide. Its platform allows users to discover ideas for daily activities, remodeling a house or training for a marathon, ongoing passions, and planning a wedding or a dream vacation. The company’s platform show visual recommendations called Pins, based on user personal taste and interests. It also provides Product Pins that make items shoppable with up-to-date pricing; Recipe Pins to cook a meal by bringing the relevant information; Shop the Look, which enables pinners to shop for the individual products they see within fashion and home decor Pins; and Video Pins, which are short videos with topics, such as how-to content about cooking and beauty. The company was formerly known as Cold Brew Labs Inc. and changed its name to Pinterest, Inc. in November 2010. Pinterest, Inc. was incorporated in 2008 and is headquartered in San Francisco, California.
As always, trade with caution and use protective stops.
Good luck to all!
Pinterest long positionHello everyone !
This is my first recommendation/analysis. Any constructive critique is welcomed. Sorry for my potential English mistakes.
PINS stock was affected by a correction after it's impressive Q2 2019 earnings report and it's stock jumped (+21% at peak).
The correction is characterized here by this orange down Trendline.
The stock entered in what we call a "trading range" (green rectangle). The probability for it to make a downtrend breakthrough is very low
considering PINS last earnings report, market confidence and increased monetization possibilities (strong ad marketing perspectives) in the future for PINS.
PS : the stock clearly broke the "trading range" rectangle (upwards) while i was writing these lines, which comforts the probability to gain some $ more.
Price target is high on the middle-long term.
Keep the looong :)
$PINS breakout and short term target.It is a sad story. I was stalking $PINS for few weeks now. Last two days forgot to check and missed this breakout. I had an alarm on the trend line and I missed the signal, it triggered. However, I am planning to trade this stock and holding some long term, it will do great. I think it is safe area to buy and I am looking to open a position, or will look for another technical buy point. Good luck to you all!
Entry 1/2Crowd Strike, although an incredible company that is rapidly growing, is a complete rip off right now. If you multiplied the total Class A and B shares by $ 70.00 high you would get a valuation of $14,135,982,257. This is obviously outrageous, even by historically low-interest rates/Trump Bull Run standards.
You can imagine the typical reaction you’d get if you said this to somebody who bought it; “It doesn’t matter, it’s a great company, just buy and hold and all those wrinkles will eventually flatten themselves out”. Think about it this way, a Mercedes Benz is a great car, but is it worth $10 000 000? Of course not. Please, wait for this company to come back down to reality before you jump over the deep end.
60% of the fully diluted outstanding shares are owned by 3 entities…That should ring some alarm bells. Once those shares start freely trading, the price will probably tank. Not good for the average mom and pop investor, that’s for sure. With only 18 000 000 Class A shares, the addition of 178 688 971 new shares would result in almost 90% dilution in the secondary markets…
Okay, brace yourselves people, we are going to do something that might seem rather unconventional; we are going to divide the total additional paid in capital prior to this offering by the total Class B stock…………
$493 000 000
Divided by 178 688 97
EQUALS…………..$2.75!!!
Let’s do some more fun little math problems. What was the closing price today? 64? Okay, let’s divide 64 by 2.75.
What do you get?
23.2727272727. That means the average gain on the Class B shares, if they were sold today, would be 2327.272727%!!!!!
Now that’s not completely fair. Yes, the average price is $2.75, but, the Series A-1 shares were priced at 50 cents, which is a bit of an outlier compared to the rest of the preferred shares. The image below is a table of each class of redeemable preferred stock
Lets us, just for fun, see what the implied profit would be for each letter in this varied alphabet of stock
The A’s………………………………. 12900% in profits
For the B’s………………………………………4571%
And for the C’s! 1422% in gains!!
Starting to understand why this valuation is ridiculous?
Okay, now let’s take a look at the book value. Even though this isn’t as relevant to this company since most of the value is intangible (i.e., people, know-how, intellectual property), it still sheds light on the extreme amount of dilution one would face if they were to buy this stock at the current price.
Pro Forma dilution is $30?….on a $34.00 stock?…….Makes sense. In order for profit margins like this to occur, almost always, there has to be a counter-party who loses big time, or else where is all this profit going to come from, especially when it is obtained without the receiver of these profits lifting so much as finger, as is the case here with Warburg Pincus, Accel, and “Capital G” (formerly Google Capital 2016, L.P…. so Google)
At least they warn us. A small remnant that is still remaining from the blue sky’s laws created way back following the Great Crash of 1929. Can you imagine the theatrics that went on back then?!
Gross profits of $162 million. That’s a pretty penny, right? Not so fast. The valuation of the company is 14 billion remember? Like we said before, we go against the grain here, do things others don’t do, so we are going to calculate how long it would take to break even if you were to buy the stock right now. …………….Here comes the magic people. Are you ready for this?
14 billion………………………………………………………………………………..
divided by…………………………………………………………………………………….
162 million………………………………………………………………………………………………………………………
…………………………………………………………………………………………………
……………………………………………………………………………………………………………..
…………………………………………………………………………..
…………………………………………………………………………………….Equals
86 YEARS!!!!! Yes!!! Just a little over the average life span for an American Citizen. Think about it. If you bought a business that was priced 86 times higher then its yearly earnings, how long is it going to take to pay it back? 86 years right?
You see, it’s not that hard to understand. None of this is. Finance is very simple; it’s 2 + 2 =4, not rocket science. It’s just the people who control the industry; the bankers, the lawyers, stockbrokers, the fund managers; they all like to guard their knowledge, just like in any profession, so they use all this bullshit lingo to keep you ignorant so you keep coming back, like your local mechanic.
Oh, we left out one small detail. That number we just mentioned, it’s not their net income, it’s their gross profit, meaning the money they make BEFORE they pay their bills!
You see that number at the bottom, that $140 077? Yeah? That’s their yearly earnings, not the 193 million we talked about before. It’s NEGATIVE, not positive, NEGATIVE 140 077 MILLION……
Which is completely OK!! They are an AMAZING company experiencing RAPID GROWTH, but $14 billion!?! That’s a little much.
They even tell you that you can’t vote!!!
PINS price increase of 3.8% and 27% decrease... The exchange rate is a symmetrical wave movement along an ATR axis. Therefore, the upward movement that is currently being developed can achieve an additional 3.88% increase. Then I expect a significant decline in the exchange rate, nearly 27%. The target price for the correction level is 24 usd. The target of the current rise is 30.72 usd.
PINS 5% decrease then 10% increase...PINS 5% decrease then 10% increase. Turning to a few days trading, the stock may be traded at 10%. The exchange rate adjustment level is 27.69 usd. It is advisable to wait for this decrease and start a long position from this level with a 30.58 usd target price. In the event that the wave structure discussed in the analysis develops, nearly 10% profit can be obtained.