The biggest show since $GameStop (GME.US)$ turned out to be ...
The biggest show since $GameStop(GME.US$ turned out to be GameStop again, relegating the $Arm Holdings(ARM.US$ saga to the #2 spot.
The market value of Softbank's 90% stake in Arm is now worth 40% more than $SoftBank Group (ADR)(SFTBY.US$ itself. Reminds me of Palm/3Com and how that top ticked the dot com bubble. Only difference - SoftBank likely goes under if Arm goes down to fair value.
What's the fair value of a company with $3.2 bn in revenue and $300 mn in net income? If fellow bubble stock $NVIDIA(NVDA.US$ (37x sales and 76x PE) is the benchmark, Arm's valuation range is anywhere from $22.8 bn to $118.4 bn. Arm shareholders better hope the tech bubble continues forever and Softbank never seeks to unload its massive 90% stake.
The stock still isn't shortable. Short interest is just 8% of float, but daily volumes are low except for the days it squeezes.
And so, the standoff continues.
(The third biggest show is the Archegos trial. SoftBank's lawyers are likely paying close attention).
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10baggerbamm : you're truly clueless if you think Nvidia is a bubble because back in 1999 probably before you were born by the way stocks were trading at 50 to 100 times forward 3 to 5-year projected revenue on companies with little to no revenue when they were going public how do I know cuz I sat behind a trading desk of my broker dealer at that time.. so listening to people say well in videos a bubble all they are are a parrot and a minor bird repeating what somebody else is saying because Nvidia is 100% presold out of everything they can manufacture everything that they can do they've sold out with a waiting list there's an allocation list the minute somebody were to cancel that inventory is sold out a hundred times over. back in the 90s all you had to do was say we're starting a web page and the stock doubled or tripled back in the 90s the late '90s 9899 cuz 99 is when everything crashed all you had to do is say we're going to sell something on our website we're going to be just like Amazon and the stock went up by two or three hundred percent. so when people make a comparison to the coms it shows how little they know because they were never around back then they talk but they didn't walk the walk
Daniel Jeya Raman 10baggerbamm: Then, why NVDA is being shorted like there no tomorrow?
10baggerbamm Daniel Jeya Raman: it's real simple everybody wants the most successful individual to fail in the most successful company to fail it's just how it is look what they do to Donald Trump look at the collusion that exists within one party's effort where they will spare no expensive taxpayers money cuz that's what they're pissing away to try to take him down everybody does it to stocks too whatever the best is it can't go up tomorrow it can't go up the following day it can't go up the day thereafter there has to be a kink in the arm or somewhere it has to go down. so they short it and you see what happens the shorts look at GameStop look at AMC those are not good companies they're great investments they're not great companies there is a difference.. the point is shorts are getting destroyed there's over a billion dollars lost in GameStop yesterday by a couple institutions.. so people always try to take down the best and Nvidia and every other company that's out there that is a disruptor and a game changer always have to deal with short sellers
Daniel Jeya Raman 10baggerbamm:
Maniac Fool 10baggerbamm: Well said
