Articles/megaposts by sleepyhead

[AlMc]

[ /QUOTE]

Southwest Airlines non-stop sounds good. Lets hope we all make it there.

Cheers![/QUOTE]

See you there.

You have earned it my TMC friend:biggrin:

 

[Citizen-T]

Great news on the Gigafactory announcement today. A lot better than I (or for that matter anyone else, especially Kass) expected. I was thinking 7% dilution, but as it stands if they do a 30% conversion premium and the stock closes at a modest $260 tomorrow then we are looking at a $332 conversion price. So at best you will need to issue 5.5m shares. That is about 3.9% dilution or so.

Sleepy, as I read it they have a hedge for up to 100%. So, I think that means that they are hedged to a $500 share price? Or am I misunderstanding that?

 

[sleepyhead]

Sleepy, as I read it they have a hedge for up to 100%. So, I think that means that they are hedged to a $500 share price? Or am I misunderstanding that?

I haven't read details about hedge yet, but if it works the same as last time then it essentially raises the conversion price to $500, but I do not think that means less shares will be issued. All it means is that Tesla bought call options on itself and will make money if TSLA goes up.

Now they can use that money to pay off bond holders in lieu of stock at maturity, so it can minimize dilution indirectly. But the key here is that according to my calculations the MAXIMUM dilution should be no more than 4%.

Tesla can pay back cash instead of shares, but then they would have to raise more money to build next fab and battery plant. I expect TSLA to issue shares at maturity, in order to not have to raise much more, if any, capital next time around.

So another 4% dilution is coming in 2020.

That is at least how I understand it.

 

[tinm]

Wonder if @sleepyhead has any comment on the collapse today of YGE? Currently trading at $0.94 (36% drop for the day).