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Firebirdparts

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Hey, public service announcement, I series treasury bonds are paying 7.12% today, as expected. If you've never heard of them, they pay zero + inflation (better than TIPS) and you're only allowed to buy $10,000 of them per year. Variable rate, so the rate will update to a new inflation number May 1. As you can see from the 7.12, they don't use phony "core" inflation.

Decent place for an emergency fund.
 
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volkyries

A man with a plan...to do nothing.
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Hey, public service announcement, I series treasury bonds are paying 7.12% today, as expected. If you've never heard of them, they pay zero + inflation (better than TIPS) and you're only allowed to buy $10,000 of them per year. Variable rate, so the rate will update to a new inflation number May 1. As you can see from the 7.12, they don't use phony "core" inflation.

Decent place for an emergency fund.
I bought some last week for my wife and I due to the limit. Definitely a good place for an emergency fund. I believe there is a 3 month penalty on interest if cashed before a certain amount of time (5 years or something), but still a good return compared to other CDs/bank accounts.
 
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VMWare (VMW) is on my watch list again after separating from Dell. I wish that Michael Dell would step down as chairman though. That guy knew how to assemble PCs in his dorm room. He is horrible at running large companies. He ran the original Dell into the ground and then stole it from shareholders with a PE firm. Then they stole EMC from those shareholders.
 

Firebirdparts

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Well. It wasn’t. It seems to me the whole market moved idiotically in the wrong direction, but you don’t have much say-so when you critique the whole market.
 
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Peleton (PTON) was down over 4% on Thursday. 7.5% decline since reaching $93 earlier in the week and after falling from a 52wk high of $171, it’s not a buying opportunity at the Thursday close of $86.06. It is off 30% in after hours trading. You can buy a share for $60.11 right now. Still a $25B market cap and without positive earnings though.

I’m not surprised. I thought it was silly that consumers would spend that much for a stationary bike after decades of home exercise equipment ultimately becoming clothes hangers. I am surprised at how fast it is falling. Might be just a bit premature as a bet on the post COVID economy coming to life, but it s/b a tradable security. It might eventually give up 80% plus of that $171 and languish for several years. $1,500 for a stationary bike?
 
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Firebirdparts

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I certainly wouldn't buy a peloton nor the stock, but it does fit in with the times. There is another transformation envisioned that reminds me of the main character's wife in Fahrenheit 451. I know a lot of y'all read that in school, and you may not remember it, but his wife was addicted to social media at that was available a high level. I don't know how those old UK futurist novelists got so many things nailed like that. Virtual reality exercise commercials today really remind me of that novel. If you're going to live in a virtual world, exercise is going to be pretty important.
 

05_never_again

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DKNG has to be a screaming buy for a long-term hold at this point. They are spending like mad as they expand into the states that are legalizing gambling, but assuming people stay on the platform (and they have the best platform) it's got to be uber-profitable in the near future, doesn't it?
 

Firebirdparts

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DKNG has to be a screaming buy for a long-term hold at this point. They are spending like mad as they expand into the states that are legalizing gambling, but assuming people stay on the platform (and they have the best platform) it's got to be uber-profitable in the near future, doesn't it?
That seems reasonable. My thinking is that it's going to be competitive, but let's assume they're ahead, that's good. I would not have used the terms "screaming" or "uber" but it's okay. Here's why: They already have a 35 billion dollar market cap. Remember their profit is the part they shave off. So just for fun, let's say that everybody in America bets $100 and they shave off 1%. That's $1 per person, of course, $330 million. Their market cap is already 100 times that big.

I don't know much about gambling.
 

05_never_again

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That seems reasonable. My thinking is that it's going to be competitive, but let's assume they're ahead, that's good. I would not have used the terms "screaming" or "uber" but it's okay. Here's why: They already have a 35 billion dollar market cap. Remember their profit is the part they shave off. So just for fun, let's say that everybody in America bets $100 and they shave off 1%. That's $1 per person, of course, $330 million. Their market cap is already 100 times that big.

I don't know much about gambling.
Their market cap is down to $18B.
 

Firebirdparts

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This is interesting also on MOS:
Vale Cashes In on Fertilizer Boom With $1.3 Billion Mosaic Stock Sale

I have been trading VALE off and on and so today they're connected. VALE seems crazy low, but then who knows what to expect under Brazilian corporate governance. I'm out of my league there. Vale's PE right now, stated on Fidelity is 3.69. I got stuck bagholding and so I might just have to keep VALE for a while.
 
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Panera is going public after being taken private 4 years ago when it had just under $3 billion in sales and a $7.5 billion market cap. The SPAC (HUGS) is soaring today. I’m interested in the current sales and market cap. Typically the way it works is that the old board and management gets (legally) bribed to facilitate shareholders involuntarily surrendering their shares to private equity instead of putting the interests of the shareholders first.

Sometimes management runs a company into near bankruptcy and then takes their company private for pennies on the dollar. The latter doesn’t always end well for the principals. Both tactics piss me off, but politicians get their cuts from Wall Street. The small guys always get burned.

The Panera deal won’t be easy to compare between the two incarnations. The SPAC will only be part owner as will the German family that controlled the PE firm taking them private 4 years ago for $7.5 billion.

https://www.cnbc.com/2021/11/09/pan...c-investment-to-go-public-through-an-ipo.html

Danny Meyer’s USHG Acquisition Corp. to Be Cornerstone Partner Alongside Panera Brands IPO
 
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HUGS warrants are up 150% today.

Panera Returning To Public Market With IPO: How You Can Get Early Access Via SPAC Merger
11/9/21, 10:58 AM
November 9, 2021 10:58 AM ET (BZ Newswire) -- M&A

Panera is returning to the public markets with a future IPO that will include an investment from a restaurant-themed SPAC.

The SPAC Merger: USHG Acquisition Corp(NYSE:HUGS) announced Tuesday it will be a “cornerstone partner” for an IPO of Panera Brands.

Panera Brands will pursue a traditional IPO that will include USHG Acquisition and its Chairman Danny Meyer as key partners. Meyer will become the lead independent director of Panera’s Board of Directors.

HUGS shareholders will be shareholders in Panera Brands after the merger. Current Panera Brands owner JAB Holdings will invest dollar-for-dollar in the Panera IPO any amounts redeemed by HUGS shareholders.

HUGS shareholders will be issued Panera Brands’ common stock at a ratio of $10 divided by the public offering price of Panera Brands’ IPO.

HUGS warrants will become a warrant based on Panera Brands’ common stock.

HUGS is a SPAC from Union Square Hospitality Group, one of the largest hospitality groups in New York and the founder of Shake Shack (NYSE:SHAK).

The unique structure of the SPAC merger could face regulation concerns. Bill Ackman’s Pershing Square Tontine Holdings (NYSE:PSTH) pursued a merger to acquire a stake in Universal Music before ultimately pulling out of the deal due to SEC objections.

Related Link: November SPAC Merger Calendar: Upcoming Votes, Earnings, Stocks To Watch

About Panera Brands: The fast-casual Panera Bread is one of several companies owned by Panera Brands, along with Caribou Coffee and Einstein Bros. Bagels.

“Panera Brands meets our investment criteria to combine with a purpose-driven business that is scalable and built for the long-term; a market leader whose greatest strength is its talent and heart; a company where people love to work and with which customers, suppliers and partners love doing business,” HUGS Chairman Danny Meyer said.

Panera Brands has over 4,000 locations worldwide, making it one of the largest fast-casual restaurant companies. The company has 2,120 Panera Bread locations in 48 states and Canada. Caribou Coffee has 713 locations in 10 countries. Einstein Bros. Bagels has over 1,000 units in the U.S.

Panera Bread was a publicly-traded company for 25 years before being bought out by JAB Holding in 2017. JAB is the parent company of many food and beverage brands and is the largest shareholder of Keurig Dr. Pepper (NASDAQ:KDP) and Coty Inc (NYSE:COTY).

Growth Ahead: A focus on omnichannel sales has helped push Panera’s growth. The company counts 45% of its sales from e-commerce.

Panera has also grown its business through its MyPanera loyalty program, which has 45.4 million members.

Meyer has been anxious to grow a fast-casual brand.

“We’ve been in the restaurant business for 35 years operating and creating all kinds of different restaurants,” Meyer said in a previous interview.

Price Action: HUGS shares are up 5% to $10.25 on Tuesday.

Copyright © 2021 Benzinga (BZ Newswire, Financial Market Data & API’s - Benzinga). Benzinga does not provide investment advice. All rights reserved. Write to editorial@benzinga.com with any questions about this content. Subscribe to Benzinga Pro (Benzinga Pro | Fast Stock Market News).
 
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