Yes the GM deal for 11% of Nikola was huge.......Both for EV 's and Tech all the way around. I posted this piece yesterday on a another forum ....so while BOTH GM and Nikola are down today , the longer term earnings accretion is outstanding for GM and their ' New ' EV purpose built and designed truck plant.......Tech is NOT dead folk's , and it's NOT expensive , it's just ' changing ' ......and taking on different forms.I say this because a perfect analysis or symmetry would be that on the one hand you have Tesla which has run hard and was off 21 % simply because it misses out on the inclusion in a group of companies being added to the S&P 500 .....but yet on the other hand you have General Motors paying US $2 Billion for an 11% stake in US electric truck manufacturer Nikola who's shares ' rocketed ' 40.8% and pushing it's Market Capitalization to US $18.97 Billion !!So classic scenario where ' Traditional ' Business .....converges with ' Future ' business . So with GM up 7.9% to a Market Capitalization of US $46.34 Billion off the back of what amounts to an equivalent US$3.39 Billion re-rate or movement in it's SP against an opposite increase in value of US$6.14 Billion in the ' underlying ' business of Nikola. Not a bad return for GM's US$2 Billion if you consider the possibilities that they in fact paid the $2 Billion at the ' Base ' price was US$41.43 per Nikola share.So that means that around half the gain or 50% of the increase in Nikola's shares to US$50.05 ....which 11% is equal to roughly the US $2Billion paid by GM , has increased increased by approximately $600 million for GM on the Nikola end of the deal ......and a further $3.39 Billion reflected in the gains made through the rising GM share price.So that's virtually US $4Billion created in value off the original $2 Billion outlaid .....or 100% gain just to start. Now that's what I call ' leverage ' and a really good bit of forward thinking financial engineering
- Forums
- ASX - By Stock
- SYA
- General Discussion Topics
General Discussion Topics, page-198
-
-
- There are more pages in this discussion • 142,911 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add SYA (ASX) to my watchlist
|
|||||
Last
2.6¢ |
Change
-0.001(3.70%) |
Mkt cap ! $267.6M |
Open | High | Low | Value | Volume |
2.7¢ | 2.8¢ | 2.6¢ | $408.5K | 15.22M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
52 | 8484271 | 2.6¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
2.7¢ | 2681213 | 9 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
52 | 8484271 | 0.026 |
76 | 19889232 | 0.025 |
49 | 20659194 | 0.024 |
28 | 8198780 | 0.023 |
19 | 4075909 | 0.022 |
Price($) | Vol. | No. |
---|---|---|
0.027 | 2681213 | 9 |
0.028 | 8109747 | 35 |
0.029 | 6887216 | 29 |
0.030 | 7663496 | 48 |
0.031 | 1974886 | 13 |
Last trade - 16.10pm 02/09/2024 (20 minute delay) ? |
Featured News
SYA (ASX) Chart |