By Nigam Arora & Dr. Natasha Arora
Signal(s) to enter, add, reduce, exit, hold or change.
TWTR has become the 173rd Arora Portfolio company to receive a buyout offer. This is an unrivaled record. Long-time subscribers to The Arora Report have made a fortune from our propensity to identify companies that get bought out. Here are the key points:
- If it was not Elon Musk but a traditional buyer, here is how it would have played out:
- $54.20 would have been the starting bid.
- Other bidders would have emerged.
- There would have been a bidding war.
- The ultimate offer would have been much higher.
- Musk is not a traditional buyer and as such poses risks to investors. Musk has said that he is “not playing the back-and-forth game.”
- Financing is anticipated but not locked in.
- The offer is marked as ‘best and final offer.’
- Musk has the right to withdraw the offer at any time.
- Musk is threatening that if his offer is not accepted, he would need to reconsider his position as a shareholder.
- The danger is that Musk could simply sell his shares at a profit and walk away.
- In such an event the stock will fall into the $30s.
What To Do Now
This is an unpredictable situation with no historical precedence and a wide range of outcomes. Therefore it comes down to personal preference.
Those with a highly diversified portfolio and willing to take the risk may consider continuing to hold.
For tracking purposes, the position will continue to be held without any profit taking.
Those who do not have a well-diversified portfolio or do not want to take risks may consider taking partial profits.
To take a free 30-day trial to paid services to gain access to more opportunities, please click here.
This post was just published on ZYX Buy Change Alert.
Markets can generate substantial wealth for knowledgeable investors. NOW YOU TOO CAN ALSO SPECTACULARLY SUCCEED AT MEETING YOUR GOALS WITH THE HELP OF THE ARORA REPORT. You are receiving less than 2% of the content from our paid services. …TO RECEIVE REMAINING 98% INCLUDING MANY ATTRACTIVE INVESTMENT OPPORTUNITIES, TAKE A FREE
TRIAL TO PAID SERVICES.