I've been in regional NSW this week with the last few days in Sydney. A casual stroll around the city had me walk past the VGI headquarters - what a great position. Wasn't too sure if I should pop in to say Hi!
Mondays VG1 NTA looks +.06% to +1.2% depending on short and unknown position performance. The S&P500 index moved -2% during the week. SP looks priced in with our usual 20% discount to NTA.
I notice Twitter was added in March with a 3% holding. Twitter is a modern day media giant and a great stock. However, today I see that Elon Musk wants to buy it for $58BUSD which is some 52% higher than the current market cap. This is a follow-on from him knocking back a board position and buying $4bUSD of stock. Pre market, the Twitter share price is only 3% higher (12% higher aftermarket/ early this morning). It will be interesting to see how this goes since many users and investors are taking to Twitter saying Musk would be bad for the platform. I wonder:
if Musk is doing the good old manipulation to profit on his recent $4b share purchase. OR
He is on record saying he will need to reconsider keeping the $4b worth of shares recently bought if the company does not accept the offer. A $4b dump into market would suppress the shareprice for quite a bit but may present buying opportunities.
So this is either a really good investment for VGI or perhaps another short term tragedy.
Happy Easter to all for Sunday.
VG1 Price at posting:
$1.75 Sentiment: None Disclosure: Held
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