Share Picks 2023

I bought shares in Kimball International KBAL way back in Jan 2021. The share price had tanked all along. Price jumped 85% today. They are to be acquired by HNi Corp.

"Under the terms of the agreement, Kimball International shareholders will receive $9.00 in cash and 0.1301 shares of HNI common stock for each share of Kimball International common stock they own"

HNI Corporation to Acquire Kimball International (yahoo.com)

Yeah I'm following it keenly, as I've invested in a. lot of companies that are Silicon Valley based. Sounds like the liquidators are indicating about 60%-80% of cash will be recovered to the policyholders. There's lists online of what companies will lose money, Roku looks the biggest so far. In theory if their book value of say 50bn included 1bn cash, and they lose 60% of that cash, it should trim down their value (and stock price accordingly, would only be 2/3% which they probably lost Friday anyway.

Bigger problem will be if any smaller startups lose significant money, or if the activities the the bank was engaged in (not hedging against interest rates), is more widespread.

I'm watching with interest, but not convinced it'll be too impactful yet.

What a day, bought a few hundred each of PACW and WAL in between halts, suffice it to say its been a good day so far!

It's not over yet, 6 more banks under scrutiny today.

Sitting at 70% is looking like a nice decision.

I dont know about that tbh, its the Swiss that will have to step in now and they'll be wanting equity for their "investment".

While I agree that it may not the brightest idea, part of thinks that a bank as morally corrupt, lacking in any virtues whatsoever, willing to deal with the biggest **** on the planet without shame, just a bunch of complete and utter ****, is bound to pull through.

What's the impact of the SNB stepping in?

I bought some CS yesterday at 2.20. Then averaged in a smaller amount at 1.81.

Anyone that bought Credit Suisse yesterday, I applaud your giant liathróidí. Up 30% in Zurich already today after the Swiss Central Bank offered a bail out.

America's largest banks have moved to shore up First Republic, easing fears that the regional lender could be the next domino to fall after collapses including Silicon Valley Bank.

They'll announce an acquisition price (eg "UBS will buy CS at $2 per share"), the share price will then basically freeze at about 5% below that price until the deal is complete. Could be 6-12 months.

Once deal is complete your CS shares will be replaced with the equivalent value of UBS shares. UBS is currently about $20, CS $2, so you'll get one UBS share for every 10 CS share

Thanks. So an effective 'freezing' of the current value of CS shares to be expended against the future value of UBS at the deal close?

If UBS is 20 today but 40 at close I get half as many units?

Not looking good on the CS front but I knew it was risky going in.

'Citing people familiar with the matter, it said an offer was made Sunday morning at 0.25 Swiss francs ($0.27) per Credit Suisse share, well below Friday's closing price of 1.86 Swiss francs and all but wiping out the bank's existing shareholders'

Looks like 82c per share for CS. Hope those that bought the dip got out quick.