On Tuesday, I posted My Top 10 PSTH targets. On the heels of that post, I got a lot of great feedback and a lot of suggestions for other companies that could be the target. So I wanted to do a quick follow up post highlighting some of the possible targets and feedback on my own targets (while again acknowledging that there are hundreds of businesses out there that could be the target, and calling the specific deal is a long shot…. though by the end of this point I’ll have thrown out ~25 targets, so I’m starting to cover a pretty wide swath of the potential targets!).
Caught wind of your blog a couple months ago and have been lurking. Great stuff and enjoying the PSTH saga. Eager to hear your thoughts on UMG.
My play on this was to buy the PSTH shares around $25 and sell Jan23 calls @ ~$4 to create an (almost) riskless play given the $20 built in SPAC "put" . Basically max 125% 1.5 year gain, $1/share max loss prior to deSPAC. And of course the tontine optionality in there with some value. I think the UMG assets are very solid and take the $20 "put" out of need for concern, I'm comfortable locking in a current cash flower like UMG as opposed to a big growth story stock Stripe/Starlink/etc with no CF.
Took me a couple hours to process the UMG play, but I'm really excited as it is a very unique asset (literally eternally valuable assets) and there's a good chance this new shareholder base with Ackman/Klarman/etc/etc can be more creative in extracting value from the business than Vivendi.
My top 10 $PSTH targets follow up
Caught wind of your blog a couple months ago and have been lurking. Great stuff and enjoying the PSTH saga. Eager to hear your thoughts on UMG.
My play on this was to buy the PSTH shares around $25 and sell Jan23 calls @ ~$4 to create an (almost) riskless play given the $20 built in SPAC "put" . Basically max 125% 1.5 year gain, $1/share max loss prior to deSPAC. And of course the tontine optionality in there with some value. I think the UMG assets are very solid and take the $20 "put" out of need for concern, I'm comfortable locking in a current cash flower like UMG as opposed to a big growth story stock Stripe/Starlink/etc with no CF.
Took me a couple hours to process the UMG play, but I'm really excited as it is a very unique asset (literally eternally valuable assets) and there's a good chance this new shareholder base with Ackman/Klarman/etc/etc can be more creative in extracting value from the business than Vivendi.
Was Universal Music Group on the list?