Recent comments in /f/wallstreetbets

FTRFNK t1_jed195u wrote

Reply to comment by [deleted] in the sad reality behind those loss porn you like to see by jposemescouilles

I don't mean to be too much of a dick but messing up a comma, period, or a run on sentence is a grammar error. Using the complete wrong word that means something not even remotely the same is not a grammar error, it's a fundamental regard error. A missed comma or period makes it annoying to read, but a wrong word can make it impossible to understand, flatly incorrect, or even completely void in a legal document.

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reddituseranyonymous t1_jed1390 wrote

Reply to comment by rokman in How bears feel rn by NeedThoseGains69

Its possible because I didnt do anything you said.

Buy Tesla pre split: 300% gain. Buy Tesla options: 500% gain. 15x in 15 months. Boom. Done.

Get overwhelmed when the 500% gain happens in a month. Get bad advice. Options for end of year go to $0

Now down 70% from ATH

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PhillyChapter9 t1_jed0rpx wrote

Reply to $FRC Trade idea by Famous_War5848

After the FDIC deal with first citizens for SIVB what is the incentive for anyone to buy FRC? Let it blow buy the performing assets, get a below market fdic loan rate, and let the fdic share in any losses. Why would anyone take on the risk themselves if they can potentially get that deal after a failure?

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FTRFNK t1_jed05t1 wrote

Reply to $FRC Trade idea by Famous_War5848

Ooof, I went down a rabbit hole about their preferred stock and you better understand what you're getting into. It's non-cumulative redeemable. Meaning if they miss a dividend they aren't obligated to pay any missed dividends and redeemable means they are redeemable at a price set in their prospectus at or beyond a specific date. Looking at this is super interesting but also incredibly boring because to know what you're getting into you need to read the prospectus and understand the terms. Interesting though in that the redeemable price is set in stone in the prospectus and unless they go bankrupt they can't redeem it for any less. There is also like 5 current sets of preferred at different dividend payout rates. I, H I know for sure and like 3 others.

I need to really look into it more, BUT if they don't go out of business looks like a guaranteed eventual 4x because I'm pretty sure the prospectus set the redeem rate of all the currently issued preferred stock in the 20's. With that said I'm a complete novice in this area and could be wrong. You'd have to read and jnderstand the prospectus.

I think the play would be to find the highest dividend rate within a reasonable redeemable window (I is redeemable at or beyond June 30 2023 for example, I believe) and buy those because they will be redeemed first when interest rates go down and they can issue a new set at a lower rate. Again, this is a first looksie, novice take.

Also, you're senior to common stock but junior to bondholders. You may get something in the event of going under, but depends on a few factors.

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DYTTIGAF t1_jed01ll wrote

Reply to comment by mattenthehat in We did it everyone. by TendiesForTheBoys

Agreed. They saw what was happening on their balance sheet, but decided to "play chicken" with the Federal Reserve.

The gambled. They hesitated to make decisions. In their view no way would the Fed raise rates 8 times within a year.

They got caught with their pants down. Consequently, they pushed these bad decisions on the shoulders of third parties with the CEO jetting out to Hawaii (washing his hands of this collapse).

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VisualMod t1_jeczv70 wrote

Reply to Reed, you're smarter than you know! by shamansufi

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