by Travis Johnson, Stock Gumshoe | June 26, 2020 5:47 pm
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Source URL: https://www.stockgumshoe.com/2020/06/friday-file-part-2-nibbles-and-two-watchlist-additions/
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SPAC INVESTING:
SHLL
SHLL-WT
Ugh..sigh I am long on GILT also and from what I have read the merger agreement gives GILT shareholders an est…$7.18 price per share + Comtech shares.
I wish it could move a little faster because I want to cash out and move on. Unfortunately, I haven’t found an a projected date of final approval and merger could be.
In your research do you anticipate the merger completion still in 2020 or 2021?
Depends on whether the anti monopoly review in Russia is completed by the current agency, and done probably pretty soon, or kicked up to a higher power and restarted with new filings. Guesses I’ve seen are “next few months” if it goes well and early next year if it doesn’t (though “deal rejected by Russia” is also a meaningful risk)
While GILAT deal with Comtech could be NoGo, how does that impacts or chanages the ability to play a major role in 5G VSAT (fixes the major issue in urban big building areas)?
One merger should not all of sudden change the technical ability and science. Even if in US, other companies don’t use (Sprint and T-Mobile are alread using), other countries
like Australia, China, Peru, and Japan have started their implementation.
Why all of sudden we are looking at such a small picture? Are we saying GILAT is just useless because one merger did not go?
Please comment and help me with what am I missing.
I bought it only for the takeover, not for the backhaul potential. The notion that satellite backhaul would be the primary solution for small cells in 5G was always overhyped, they do have good potential for growth from backhaul but it won’t be massive or immediate growth… the bigger issue now is probably that a big part of Gilat’s business is satellite stations that provide internet access for airlines, and that business quickly got clobbered with COVID.
Still, my best guess is that Gilat will do fine in a few years even if the deal falls through… but I bought for the deal, not the fundamental prospects, so I’m not interested in holding for the possibility of a solid recovery.
GILT is coming back with BANG!
Travis I think you are entering the same class of market maker as Cramer- when you mention something up it goes.
Travis GILT also has a roughly 7% yield now which also doesn’t hurt while you hold it. Haven’t bought yet but it is on the watchlist
They paid a dividend in 2019, probably based on 2018 results (it paid in March), but as far as I know have not declared one for 2020. I’d be a little surprised if they decided to pay a dividend, given the pending takeover and the generally tough year operationally.
Kambi up 45% today- market maker
I haven’t seen anything like that. From what I can tell, Kambi closed today in Stockholm right around 200KR, pretty close to where it has been for the past week but down about 2% on the day. Not much trading OTC, but there was a trade at $20.30, which is a little bit of a discount to the Stockholm price.
I added it to my fidelity watch list and it tells me since last close up $6.30 for +45%
I got in SHLL at 23.85/share
I didn’t hear about the opportunity tell late Friday.
Is there still some good upside to this stock ?
Cattleman,
SHLL : The merger of Tortoise and HYLIION will be competed by the 3rdQ2020, from now till that date, share price still has a lot of upside.
As I previously predicated that was exactly what had happened to VTIQW.
I sold out all my VTIQW ( now NKLAW) ~$27.00 (cost ~$6.50).
SHLLW cost me ~$2.00+. So far so good.
For SPAC investing, I only buy warrants, It ties me up less capital. As long
as SHLL share price inches up so as the warrant.
Full disclosure:
I have:
1 . SHLLW
2 . FMCIW
3. GPAQW
4. CCH-WT and
5. HCCHW
Hi ytse,
If you don’t mind, how did you find about SHLL, NKLA etc, do you have a subscription?
Thanks!
rasimuni,
No, I do not have any subscriptions, all the information I read is free. Except Gumshoe but I have a life membership on this one, I have this one when I was still in my private practice, in order words, when I was young then.
1. https://spacinsider.com ( this is my daily BIBLE, I cannot do anything without it.)
2. https://stockwits.com ( type in the ticker , for example SHLL, try to learn about how the little guys like us, what do they say about the stock, there are a lot of idea..)
3. https: investorshub.advfn.com ( same as #2, I like to know how little guys think about the stock).
Lastly,
4. https://accelerateshares.ccom ( this website has a section just about SPAC, A lot of information).
Here is the thing, I am a little guy, I am very humble to learn from my
peers. Using my brain to pick and choose.
Thanks ytse! Appreciate it!
rasimuni,
I had a detailed answers for you, but they deleted it. Sad.
No worries, not sure who you meant by “they deleted it”. May be you have a subscription to a SPAC investing.
1 spent more than 30 minutes for your answers and edited it and post my answer and read it. 20 minutes later it was gone.
Stockgumeshoe delete it.
Sorry that’s how it looked, we did not delete any of your comments. It is true that comments with multiple links often get shifted to our “pending” list for moderation as part of our anti-spam efforts, so your longer post with links didn’t appear on the site until a person here at StockGumshoe was able to approve it (we’re small, and don’t work 24 hours a day).
Thanks Travis! Appreciate it!
Hi, Travis,
You are okay in my book. I always like to read those “genius” teasers. Their ideas always good, it is just up to me to pick and choose.
From time to time, if I find something new and we can make a quick buck, I will let your paid members a head up. We are all here to make MONEY, I do not mind to
share with them.
Cattleman,
It is another beauty: SHLL.
I am very glad you did.
Vxrt shot up
Dear Travis, Great thoughts again on your Friday File. I have a question related to your writing about Pershing Square Holdings. But first, what exactly is such an entity like Pershing Square? A holding company? A conglomerate? A hedge fund? A little of each mentioned and more? My main question is: Why does a business like Pershing Square Holdings have a discount (little or big) in relation to the total value of the shares of all the companies it owns through shares? The only reason that I can think of is that investors look at what Pershing Square holds and instead of buying shares indirectly, that is, purchase shares of Pershing, they purchase shares directly in the companies (if they are publicly held). They would then get most of the rewards (and risks, too) without having to pay management fees and performance fees. So then there really is no attractiveness in being a Pershing Square shareholder?
I’m not sure if there’s a specific legal term for its structure, but it’s really a closed-end fund, a publicly-traded hedge fund. Closed-end funds usually trade at a discount to the market, there’s not a single clear reason but it’s probably mostly because their fees are relatively high and they sometimes use leverage, which accentuates both positive and negative moves, and they’re not redeemable like ETFs so there’s no mechanism through which arbitrate could shrink the discount (unless the fund buys back its own shares, which Pershing has been doing for a while but with no real impact yet).
Pershing Square Holdings trades at a discount to the market probably partly because it has a hedge fund fee structure (I think it’s 1.5%/15%, not 2/20, but that’s still high) and yet has a relatively concentrated portfolio and therefore could be pretty closely emulated without buying into the fund, and, I expect, partly because people (including me) were disgusted with Bill Ackman’s dramatic failure to do due diligence with his gigantic Valeant position a few years ago, which is what really crushed Pershing Square and caused Ackman to make the rounds, do his mea culpas, and very publicly talk about a different and more careful strategy.
It makes sense to me that Pershing Square should trade at probably a 10%+ discount to NAV given Ackman’s very strong but also very volatile history and the concentrated risk you’re taking in this fund… but 30-40%, in my mind, is too much. It’s also a passive foreign investment corporation, since it’s domiciled in a tax haven and doesn’t pay US tax, which is a tax headache for many people (it requires extra reporting and attention as an investor, since the tax obligation is largely passed through to investors — I can’t explain PFIC well, but do consult your tax expert if you opt to invest in one).