Twitter TWTR in Talks to Strike a Deal With Elon MuskElon Musk could finalize his acquisition of Twitter as soon as TODAY. Twitter shares TWTR popped 5% higher on the announcement.
The stock has been showing a bottoming consolidation in a rounding bottom to confirm a trend reversal by a close above $54.50 supply region.
In case of the deal's confirmation, TWTR may hit $65.00 - $70.00 easily.
TWTR poison pill "defence"If you haven`t sold TWTR here:
then what you should know:
After buying 9.2% of TWTR shares, Elon Musk wanted to buy Twitter (TWTR) for $43.4bn, $54.20 per share representing a 38% premium to the closing price on 1 April and take the company private.
Elon Musk about Twitter: “potential to be the platform for free speech around the globe, and I believe free speech is a societal imperative for a functioning democracy.”
“However, since making my investment I now realise the company will neither thrive nor serve this societal imperative in its current form. Twitter needs to be transformed as a private company.
"My offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder. Twitter has extraordinary potential. I will unlock it.”
TWTR is up only 8% after 8 years of being listed.
I don`t think Jack Dorsey has found the path to profitability, nor that the board works in the interest of the shareholders.
That`s why they went for the poison pill "defence".
I say "defence" as a joke, since the only one defended here are the board members and not the shareholders, which haven`t gained too much from holding the bag anyways.
The poison pill allows investors to buy additional shares of the company’s stock at a discount and therefore dilute the value of each individual share.
That is a viable strategy against an unwanted hostile takeover.
In my opinion, the board members will accept Elon`s proposal and buying the stock now will give you a 17% return.
Poison Pill Explained: Why Elon Wants to Buy TwitterIn this post, I'll explain the ongoing situation with Twitter; how they're preventing Elon from buying the company out, and my thoughts on why Elon wants Twitter so badly.
Twitter's Strategy
- Twitter is using a strategy known as the 'poison pill'.
- This is one of many defensive strategies that boardrooms can take when they're trying to prevent hostile takeovers.
- While the method may vary depending on the deal, the essence of the strategy is simple: make the stock less appealing to the hostile acquirer, and allow opportunities for other shareholders to acquire the stock at a discounted price through the use of call options.
- Netflix (NFLX) successfully used this strategy against Carl Icahn in 2012, when he attempted a hostile acquisition of the company, making it difficult for Icahn to acquire more than 10% of the company without approval from the Netflix board.
- Luckily for Icahn, he made 20x returns on his investment simply from holding Netflix shares for the three years that he attempted a takeover.
- In the case of Elon's acquisition of Twitter, the terms are slightly different.
- Elon offered to buy the entire company for $43B, which is a generous offer of $54.20 per share.
- Twitter's board however, having seen prices once hover above $70, were not happy with Elon's offer, and asked him to join the board with a 14.9% stake limit - Elon refused.
- Twitter emphasized that their poison pill strategy will activate if Elon tries to acquire more than 15% stake in the company, and will remain effective until April 14, 2023.
Twitter Shareholders by Size
- The Vanguard Group, Inc. 10.3%
- Elon Musk 9.2%
- Morgan Stanley Investment Management 8.4%
- BlackRock Fund Advisors 6.5%
- State Street Corp. 4.5%
Why Elon Wants to Buy Twitter
- My thoughts on why Elon is looking to acquire Twitter is as follows:
- The narrative that Elon is pushing as his justification for the purchase is "free speech".
- He has been vocal about Twitter's decision to shut down former US president Donald Trump's account.
- However, I personally believe that there are deeper layers to this matter than just 'free speech', and 'twitter's untapped potential'.
- Tesla currently does not spend a single dime on marketing and advertisement costs.
- Elon dissolved the PR department in 2020, and stated that the capital that was previously used for marketing, will now be reinvested back for R&D.
- Instead, Elon has been using his twitter account as a channel to promote his businesses - not only Tesla, but also SpaceX, SolarCity, and the Boring Company.
- The last time Tesla had a PR department, it spent $70m in marketing and advertisement costs.
- So taking that into account, and considering the value that was created by those costs being reinvested back into R&D, Elon has singlehandedly managed to create hundreds of millions of dollars in value through his twitter account.
- And the risk of him having his twitter account shut down, due to his potential violation of one of their many policies, is huge.
- His acquisition of the company's stake, and taking the company private eliminates this risk for him.
- Put into context, it makes more sense: Elon's $43B offer to buy Twitter is equivalent to someone with a net worth of $1m purchasing a G-wagon for their rental car business.
Conclusion
On one hand, we have Twitter, a company willing to use the poison pill strategy to prevent a hostile acquisition from taking place, and on the other hand, we have Elon Musk, who's trying to take the company private for $43B. I think there are bigger implications to his offer, as we've seen how he was able to connect seemingly unrelated businesses to form a virtuous cycle that would become the pillar of his entire empire. We use electricity generated from SolarCity to power our Tesla cars using solar energy. With the satellites that SpaceX launches, our Tesla cars undergo software updates in real time, and the Boring Company solves traffic jam issues by taking our Teslas through underground tunnels. I'm sure there's room for Twitter to fit into this equation, but I'm not completely sure as to what Elon has on his mind. One thing is for sure: it has more to do with Elon's personal philosophy.
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TWTR bounced above channel med; big flag targets 116TWTR just bounced off median of flag channel & is now consolidating between 2 anchored VWAPs.
A measured abc or flagpole move would take us to 116 for wave 3.
TWTR recently completed a M-pattern, reversed up & now is retesting the neck before a leg higher to reach 58 & 66 TP levels.
it also stopped right in the middle of my yellow box unsure which direction to take.
A consolidation near the neck area before further rally would be my bias as wave 3 continues.
just maybe coming changes would be good to TWTR.
not trading advice
TWITTER 18th APRIL 2022This analysis is based on market sentiment. Lately, Elon Musk has caused a commotion on social media because he decided to buy Twitter, the richest man offering US $ 43 billion or equivalent to Rp. 618 trillion. Musk's reasons for owning Twitter are not purely for business or financial gain, but Musk reveals the reason is so that Twitter's social media remains a democratic platform. If drawn into the journey of Musk and Twitter, the two are already very close because Musk is a prolific Twitter user. He is also a troll or person who likes to joke on this platform and so far Musk has not arranged the financing to buy Twitter and make it private.
Trading Idea - #NASDAQ @tradingviewMy current view on the NASDAQ Index : SHORT / Sell
Target: 13,200 points
Stop : 14.400 points
The Nikkei Index is already down 1% tonight.
U.S. equity investors are increasingly moving to the options market to hedge against further declines on Wall Street. Demand for puts is increasing. This has become a trend among investors in recent months to provide greater protection against losses. The FED's restrictive position is making markets unsettled after years of double-digit gains.
Stocks trimmed their losses last month, but optimism weakened in April.
Overall, the SP500 is down 7% since the beginning of the year. The Cboe Volatility Index VIX , Wall Street's "fear barometer," was recently at 21 and has spent most of 2022 well above its historical average of 17.6.
Fund managers and banks believe the SP500 needs to fall to 3,600 points before the FED intervenes to support the markets. In addition, cash holdings among fund managers are currently at their highest level since April 2020!
Twitter - TWTR Technical Analysis - Hold For Now.Using a Weekly chart you can notice that prices have been moving horizontally, not a proper trend.
With a daily and 4h chart, a start of an uptrend (Bullish behaviour) might be found. Unfortunately, the bullish trendline can not be considered so it has been tested only 2 times.
Best option is to HOLD, as both up and down option are available.
This Market, is mainly influenced by Fundamental
Option 1 only if the resistance level of 50 USD will be broken
Option 2 - testing the amended trendline around 32 - 33 USD and if this level will not be broken it can be a signal of buying
Option 3 - Testing the possible trendline at 23.5 USD. If it will not be broken, it can be seen as buying signal.
Twitter Trade IdeaTwitter I believe to still be a great stock to watch this coming week due to the chart analysis I'm watching. Twitter has been on a run ever since Elon musk mentioned the amount of stake he took with investing in this company. But over the past few trading days, Twitter has begun to pull back a little and is now sitting on a key support line. If this $44.10 area decides to break then it can fill the gap back down to the $40.81 area. But if it holds the $44 key level then maybe it can retest the high of $54.57. I will be watching twitter this coming week for a long if we can bounce or a short if it decides it wants to fill the gap.
SOLANA : Daily TA : 04.18.22 (IO)echnical analysis of #Solana 's chart and its appealing ranges . Let's take a look at some of the high-potential cryptocurrencies in the market for investment, as you can see all the supports, resistances, targets, etc. are marked on the chart. Pay special attention to the specified levels that i mentioned in the chart . I think everything is obvious in the chart , but just in case if you had any questions pls feel free to ask .
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👤 Arman Shaban : @ArmanShabanTrading
📅 04.18.2022
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Twitter Reject Elon Musk’s $48BTwitter has chosen to embrace a "Death wish" way to deal with Elon Musk's $48 billion proposals to purchase the organization, CNBC wrote on 16 April 2022. The restricted span investor freedoms plan gives that "assuming any individual or gathering procures advantageous responsibility for least 15% of Twitter's remarkable normal stock without the board's endorsement, different investors will be permitted to buy extra offers at a markdown.
TWITTER - LongThe bullish impulse from May 2016 formed an Expanding Leading Diagonal for Twitter. According to Elliott Wave Theory, this pattern (occurs as Wave 1 or Wave A) usually dictates the direction of impulse - in this case, to the upside.
As long as we don't break below $13.70, all retracements are considered as Wave 2. Once Wave 2 completes, a more impulsive Wave 3 will ensue - it could already be in the works, considering we've bounced off significantly from the $30 range.
Twitter will probably see ~$140 in the coming years.
Bank Nifty Short term Important Trend Analysis (One must Know)Hey folks,
lets look the Bank nifty what's happening in it.
Look at the point 1 first
Breaking of 36600-36700 Zone Made
Bears Dominating and They Drag the market Down
From Point 1 to 2
Then Bulls Come into play
and Drag market Upto 36600-36700 Zone
From Point 2 to 3
Now observe this level is important for setting up the trend
After That Bears again Come into play
and Drag the market down from 36600-36700 Zone
From Point 3 to 4
but this time they aren't able to dominate downtrend for
longer time
Means Demand was Still Stronger.
& at Point 5
Bulls broke the level and a steep rally comes in
and now market is consolidation in 38000 to 37400 level and breaking of this consolidation will set the trend on either side.
If consolidation broke on downside we can see good down move and bears dominating again.
but if we see consolidation broke on upside a trend line will also broke which is coming from upside in higher time frame
and breaking of it will change the structure. and we can see 39000 level very soon in bank nifty.
Hope it helps you and increased your knowledge .
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$DOGE @elonmusk is buying Twitter...probably nothing...Analyzing $DOGE is like doing Elon Musk analysis. The two are connected and unpredictable.
We can however see that the movement is bullish and the ATH has been running for almost a year (May 8th 2021).
In the $DOGE foundation there are both Musk and Buterin and this coin has yet to take its revenge on the other Dog.
If the rise starts as it seems, I thought about the TP (green) and the SL (orange) reached each step.
The FIB time cycle suggests that something may happen around June 10th, but I think it happens sooner.
And yes! Musk is buying Twitter...probably nothing...