Tender Twitter

Sponsored By April 22 2022 Good morning traders, Welcome back to The Daily Setup. Markets were down yesterday thanks to comments by J Powell. Here’s what’s on the docket today: - Jerome Powell alludes to multiple 50 point rate hikes - Coinbase makes another acquisition - Elon has secured funds to buy Twitter Check out our newest section Meeting with the Bobs, have a cup of joe, and enjoy your weekend. Nick How'd the markets look? Market Outlook Xerox Runs Dry Biggest Mover [Activision Blizzard, Inc. ]( Looks like Xerox (XRX) needs to refill their ink cartridges because they’re not printing money like they used to. Shares in the company dropped -15.71% on Thursday after they published an [abysmal Q1]( earnings report. Xerox leadership blamed their folly on the typical excuses: inflation and the supply chain (where have we heard that before?) They’re staying optimistic though, keeping their guidance for the rest of 2022 the same, but we’ll have to wait til their Q2 earnings report to see if that was a good decision or not. - The good news was that they brought in [$1.67B]( of revenue. The less good news is that it constitutes a -2.5% decline YoY. Silver linings though, right? - CEO John Visentin says they’ll be turning it around to deliver +1% revenue growth by year-end and that free cash flow (FCF) would reach [$400M](. That would be nice if it wasn’t a 29% decline in FCF YoY. This is definitely not a great look for Xerox and it seems like their optimism for the rest of 2022 is riding on some bets that the US economy doesn’t have any more bumps in the road. They were certainly affected by the pivot to remote working so hopefully the return-to-office trend will even things out for them. With all this in mind, the company is still paying a 5.1% dividend yield so if the stock sinks lower I might see it as an enticing buy. Tesla Beats Street Street Stories [Cycling Downhill] J-Pow is here to whip inflation and chew bubblegum, and he’s running low on Hubba Bubba. The Fed Chair signaled that the May meeting will most likely see a [half point interest rate raise]( and that similar moves would follow in short order. Powell also alluded to shrinkage (we’ve all been there fellas), as in decreasing the size of the Fed’s balance sheet in order to bring rampant inflation under control. The goal is to bring the economy to a soft landing, and he’s going to need some luck since most instances of government intervention wind up like [Toonces the driving cat](. - Despite rapidly rising prices across the board, Powell remained steadfast in his view that the U.S. economy is strong but warned of a labor supply and demand imbalance that could contribute to the inflationary environment. Leave it to a bureaucrat to focus on the negative when people earn more money. - In terms of Fedspeak, we can [officially retire “transitory”]( and there is a new buzzword, “expeditiously” which is the pace of rate hikes to come. - J-Pow didn’t rule out the possibility that inflation peaked in March, which tells me that he hasn’t shopped for groceries or filled a gas tank lately. The Fed is saying all the right things if they are truly zeroed in on bringing inflation to heel, but when the markets inevitably throw a temper tantrum in response to rising rates, we’ll see how steely their resolve is. Getting defensive might be the right play now, so I’m looking at companies that I spend money with week in and week out, namely Kroger ([KR](), Target ([TGT](), and Onlyfans. Sponsored By: If you’re like us, your portfolio has been more red this year than an Ohioan vacationing in Florida without sunscreen. Growth stocks, value stocks, heck, even crypto are all down. The problem is a correlation, as no matter what you choose, it still seems to rise (and fall) in tandem. [But… what if you could invest in something that was actually uncorrelated? A true step toward diversifying your portfolio.]( That’s where we come in. [We’re Alts.co, a newsletter that keeps you up to date on alternative investments. Comics, Sports Cards, Sneakers, and Startups, if you can name it, then odds are that we write about it.]( and Wyatt provide original research and insights across these alternative investments to help you find new assets that fit your portfolio. Join 27,000 others and see what you've been missing. [Subscribe to Alts for FREE!]( *See Disclaimer Below Coinbase Conquers Turkey Token Talk [Token Talk] It’s time for your weekly “Coinbase-buys-another-international-exchange” article. This time COIN has set its sights on BtcTurk, Turkey’s largest exchange. The Turkish market is particularly appealing due to the country’s high adoption of crypto in the face of their declining currency, and COIN rivals (looking at you Binance) are establishing their [own presence](. Expect similar announcements like these as Coinbase continues its plans for [world domination](. - The deal is rumored to be worth [$3.2B]( and reportedly at least one firm has already signed a term sheet. There is potential for part of the deal to be a share swap. - Last month, Coinbase announced its plans to acquire 2TM, the owner of Brazil’s largest exchange, in a deal valued at [$2.1B](. That hasn’t closed yet but it would be another feather in COIN’s cap. It is worth mentioning that the news caused COIN stock to drop -6.67% on Thursday. I bring it up because it’s clear that they’re making a huge bet that they’ll be the ultimate crypto broker to persevere after the current global rush we’re seeing. These investments could pay off but they are a risk, especially since crypto is already so volatile. This could be really great news if I believe in their strategy and could be a great buy in hindsight, but only time will tell if COIN is the ultimate winner of the token wars. Twitter - Love me Tender Deals and Rumors [Deals and Rumors] Another day, another twist in the Elon Musk Twitter courtship. The man who eliminated the car dealership from the auto purchasing process is again looking to [cut out the middleman]( by exploring a possible tender offer to buy Twitter ([TWTR](). The Dogefather announced that he has secured $46.5B in funding, coming on the heels of last week’s offer to purchase the company for $43B. Pearl clutching big J blue check journalist types could be seen collectively fainting across the nation at the news. - Musk’s latest filing outlines debt funding of $25.5B from Morgan Stanley and other firms, and equity financing of $21B with participants including Bank of America, MUFG, Barclays, SG, Mizuho, and BNP Paribas. - Twitter shares were up slightly on Thursday, closing at $47.08, which is still below the original offer price of $54.20. - The possibility of a tender offer was first floated on Monday when Musk tweeted lyrics to the Elvis song “[Love Me Tender](”. M&A deals are now conducted via memes and social media and I’ve never felt so old in my life. Right now a snifter of brandy, some comfy slippers, and a Matlock marathon sound pretty good. This whole thing is absolutely absurd, but it’s clear that Elon isn’t screwing around and is dead serious about acquiring the world’s favorite digital cesspool. He’s got the biggest banks in the world backing him, so a rival bidder swooping in at the last minute with a higher offer seems unlikely. There’s still 15% upside from Thursday’s closing price to Musk’s offer price, so given the uncertainty in the rest of the markets, sailing on the S.S. Arbitrage may be worth my taking a look. Link Roundup Other News Other News Link Roundup + Netflix? Never Heard of ‘Em- HBO gains 77M Subscribers as Netflix Declines ([link]() + Somewhere Quibi is laughing - CNN+ to Shut Down ([link]() + Good Job! - Unemployment reports at its lowest rate in 52 years ([link]() + Flying High - United Airlines Expects its first Profit since 2019 ([link]() + Mortgage to the Moon! - Mortgage Rates Keep Rising ([link]() Meme of the day I feel attacked, [via @Quartr_App]( [other news] Meeting with the Bobs [other news] Welcome to [Meeting with the Bobs](. Reply directly to this email to respond, and feel free to be creative as possible. Yesterday’s question was: Would you invest in a spot bitcoin ETF? One person just responded aggressively ‘Of course I would’, as if I doubted they couldn’t. Odds are they still live in their parent’s basement. Today’s question: Are you confident that Elon will buy Twitter? Click on either of the links below to vote: - [Yes]( - [No]( 62 Calef Hwy #233 Lee, New Hampshire 03861 United States Questions or concerns about our products? Email our team here support@thedailysetup.com © Copyright 2022, [RagingBull]( - [Refund Policy]( - [Privacy Policy]( - [Terms & Conditions]( SPONSORED AD PLACEMENT: This email contains an advertisement by a party that is unaffiliated with Raging Bull. Raging Bull does not in any manner recommend or endorse any stock, investment or service that is the subject of this advertisement.. DISCLAIMER: To more fully understand any Ragingbull.com, LLC ("RagingBull") subscription, website, application or other service ("Services"), please review our full disclaimer located at [(. FOR EDUCATIONAL AND INFORMATION PURPOSES ONLY; NOT INVESTMENT ADVICE. Any RagingBull Service offered is for educational and informational purposes only and should NOT be construed as a securities-related offer or solicitation, or be relied upon as personalized investment advice. RagingBull strongly recommends you consult a licensed or registered professional before making any investment decision. RESULTS PRESENTED NOT TYPICAL OR VERIFIED. RagingBull Services may contain information regarding the historical trading performance of RagingBull owners or employees, and/or testimonials of non-employees depicting profitability that are believed to be true based on the representations of the persons voluntarily providing the testimonial. However, subscribers' trading results have NOT been tracked or verified and past performance is not necessarily indicative of future results, and the results presented in this communication are NOT TYPICAL. Actual results will vary widely given a variety of factors such as experience, skill, risk mitigation practices, market dynamics and the amount of capital deployed. Investing in securities is speculative and carries a high degree of risk; you may lose some, all, or possibly more than your original investment. RAGINGBULL IS NOT AN INVESTMENT ADVISOR OR REGISTERED BROKER. Neither RagingBull nor any of its owners or employees is registered as a securities broker-dealer, broker, investment advisor (IA), or IA representative with the U.S. Securities and Exchange Commission, any state securities regulatory authority, or any self-regulatory organization. Employees, owners, and other service providers of [RagingBull.com](, LLC are paid in whole or in part by commission based on their sales of Services to subscribers. WE MAY HOLD SECURITIES DISCUSSED. RagingBull has not been paid directly or indirectly by the issuer of any security mentioned in the Services except possibly by advertisers in this email. However, Ragingbull.com, LLC, its owners, and its employees may purchase, sell, or hold long or short positions in securities of the companies mentioned in this communication. [Unsubscribe]( [Manage your email subscriptions.](