Elon Flips Twitter the Bird

Sponsored By: April 19, 2022 Good morning traders, Welcome back to The Daily Setup. Hope you didn’t miss us too much after the brief hiatus. Surely nothing interesting happened while we were gone, like banks reporting earnings or Elon trying to buy Twitter. Here’s what’s on the docket today: - Casa switches to Verizon - The last of the big banks reports earnings - Apollo may get into the mix with Twitter and Elon Check out our new section at the bottom, ‘Meeting with the Bobs’, in which we’ll look for feedback from you, our subscribers, on random questions, suggestions, and anything else under the sun. Have a good one. Nick How'd the markets look? Market Outlook CASA Up Grande Biggest Mover [Activision Blizzard, Inc. ]( Casa Systems (ticker: CASA) went all “mi Casa es su Casa” to Verizon on Monday. The company announced that they have entered into a [Securities Purchase Agreement (SPA) with Verizon]( which will give the wireless operator a 9.9% stake in the company. Casa also agreed to a multi-year purchase contract with Verizon for its 5G core network functions, sending CASA up 82.5% on the day. - Under the SPA, Verizon will buy approximately 9.3M shares of Casa at a price of $4.24 which roughly equates to a [$40M investment](. - The company's [5G core and securities products]( will help to power Verizon’s, “public Mobile Edge Compute (MEC) service offering.” Whatever the heck that means. - [Verizon immediately becomes the third largest shareholder]( in Casa behind only Summit Partners LP (40.4%) and Chief Executive Jerry Guo (12.8%). Shares of CASA were down 51% on the year before Monday’s announcement, which pushed the stock into the green on a year-to-date basis. Well well well, [how the turn tables](. Multiple daily highs between [$7.00-$7.50]( were reached between August-October 2021. I’m keeping CASA on my watchlist as the stock is within spitting range of those highs, which in turn, could provide for some nice resistance if I was looking to make a play to the short-side. Posting a high BAC Street Stories [Cycling Downhill] Shares of Bank of America (ticker: BAC) rose [3.41%]( during Monday’s trading session following its Q1 earnings release. The bank, which was the last of the major banks to report, produced results that beat analysts’ expectations on both the top and bottom line. While the company did show a [12% drop in Q1 profit](, Bank of America was the only major bank to show an increase in revenue. JPMorgan, Morgan Stanley, Goldman Sachs, Citigroup, and Wells Fargo all showed a [slowdown in YoY revenue]( citing inflation and the crisis in Ukraine as the main catalysts. - Bank of America reported [Q1 earnings]( of $.80/share on $23.33B in revenue vs. Refinitiv’s estimates of $.75/share on $23.2B. - Mortgage originations also depicted the contrast between BAC and its competitors, as this category rose [7% YoY](. - [According to CFO Alastair Borthwick](, who sounds like a top-notch d-bag in a movie taking place at an all boys boarding school, “Net interest income increased by $1.4 billion versus the year-ago quarter supported by strong loan and deposit growth.” “Going forward, and with the forward curve expectation of rising interest rates, we anticipate realizing more of the benefit of our deposit franchise.” With multiple lows put in last July in the $37.50 range, Monday’s earnings release just may be the catalyst BAC needs to gain some momentum to the upside. Meanwhile, if I was looking for exposure to the major banks, but single-stock risk was something I was trying to avoid, I’d be taking a look at the SPDR Financial ETF (ticker: [XLF]() which may be my best bet. A breakdown of XLF’s holdings can be found [here](. Sponsored by Family Investing Made Easy Family Investing App UNest, Launches [“Crypto for Kids”]( UNest just launched their[waitlist for UNest Legacy](, a simple and easy way to give your children the gift of crypto. By joining the waitlist you get: - [⌚]( Early access to UNest Legacy - 💎 Automatically entered into UNest Legacy’s weekly Ethereum giveaway* - [🖼️]( Entered into future UNest Legacy NFT giveaways* - [🆕]( Access to UNest Legacy Updates *Terms and Conditions apply [JOIN NOW]( *See Disclaimer Below WonderFi’s Shopping Spree Token Talk [Token Talk] Kevin O’Leary-backed crypto platform, WonderFi (WONDF) has money to burn as they continue their conquest of Canada’s crypto market. Their most recent target for acquisition is the trading platform Coinberry, in an [all-stock deal valued at ~$38.3M](. This is the latest move in the consolidation of the market in the Great-White-North but WonderFi has its sights set internationally, let’s see if they can pull it off. - The deal is expected to close in Q2. Coinberry shareholders will receive [~29.1M]( newly issued WONDF shares for their trouble. - In March, WonderFi closed its [$162M acquisition of BitBuy](, another Canadian trading platform with over 400K users. - The shopping spree doesn’t end there as WonderFi also plans to buy game developer Sun Machine Entertainment for [$13.5M]( in a play-to-earn bid. The Wild West days of crypto and the blockchain have probably been waning for a while now but this recent acquisitions tear from WonderFi is certainly a sign of the times. Previously the crypto market in Canada had been largely fractured but now WONDF has consolidated all these services users into a base 700K strong. With plans to expand the BitBuy brand to Australia, and whispers of a US expansion we can expect rivals to be itching to close their own deals to compete. Elon Flips Twitter the Bird Deals and Rumors [Deals and Rumors] No, no we didn’t Elon... Recently we talked about Elon Musk buying 9% of Twitter to become its biggest shareholder. Like with all things Elon however, the situation escalated, as [he went bat sh*t on twitter](, rejected the offer to join the board, and then submitted a bid to [buy the entire damn company]( outright for $43B. The reactions have been interesting to say the very least, including former CEO Jack Dorsey calling the board out for its inefficiency, Elon turning the platform against itself, all while even more parties are tempted to make their own offer as TWTR is on the market. Love him or hate him, at least Elon gives us that drama we all crave. - On Friday TWTR’s board announced they would be adopting a shareholder rights plan (aka poison pill) that would become exercisable if anyone acquired over [15% of their common stock]( without board approval. - Elon didn’t pull punches in his response, [tweeting](: "Board salary will be $0 if my bid succeeds, so that's ~$3M/year saved right there,". Dorsey provided his own two cents, [saying]( “[The board is] consistently the dysfunction of the company”. - While the flame wars go on other parties are sensing an opportunity. Buyout firm Thoma Bravo LP has [reportedly]( made their own offer while [Apollo Global Management]( is considering backing whatever party attempts a buyout. This story has it all: betrayal, politics, boardroom conspiracy, it’s some real Game of Thrones type sh*t. It seems that the prevailing sentiment of TWTR’s board is to reject Elon’s bid (even if it was a 48% premium on the company’s share price), but doing so probably wouldn’t be in the best interest of shareholders. That’s where Thoma Bravo’s potential bid comes in, adding even more fuel to the fire. Who knows what the outcome will be but Twitter is now in play and things are really just getting started. Link Roundup Other News + Owning the libs and getting owned in the process - Infowars Files for Bankruptcy Over Sandy Hook Lawsuits ([link]() + The Usual Cast of Characters - Goldman & Morgan Stanley to Lead Mobileye IPO ([link]() + I’ll Take Things I Don’t Believe for $500, Alex - China’s GDP Grows 4.8% in Q1 ([link]() + Gotta Get Out While the Gettin’ is Good - Southwest Gas to Explore Sale & Other Alternatives ([link]() + On Second Thought, Maybe We’ll Listen to Our Communist Government - DiDi Global Sinks on Planned U.S. Delisting ([link]() Meme Of The Day He did it, he really did it, [via @elonmusk]( [other news] Meet 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. What’s the worst part of doing or filing your taxes? Mine is seeing all the poor trades I made throughout the year. 62 Calef Hwy #233 Lee, New Hampshire 03861 United States Questions or concerns about our products? 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