In case you missed it yesterday....Elon Musk went out and bought around 9-percent of Twitter (quietly over the past month).
His plan? He doesn't really say much.
Yes, he does have a problem with Twitter's view of free speech.
I looked up the stock-holder meeting (they are mandated)....it's the last week of May....roughly seven weeks away.
So the obvious thing to ask....is he going to enter the meeting with an agenda....to let various members of the board go, or possibly rewrite the way that the company functions?
I predict three things to likely occur:
1. Behind his 9-percent, there will probably be dozens of fairly-well-to do folks, with his thinking....who set out to buy $100k to $500k of the stock each. If you were curious....before all of this occurred, the stock was around $33 (end of Feb). At the close of yesterday, the stock was now at $49.97.
You can also toss in tens of thousands of folks who will go and buy anywhere between 25 and 500 shares....to support Musk in his strategy.
I won't say he'll control 50-plus percent of the stock-holders....but it'll be fairly close.
2. The pro-Twitter people being disturbed by this action? Maybe....if so, the price of the stock will escalate even more. Just a humble guess, but in four weeks time (early May)....it wouldn't shock me if the two groups have escalated the stock price up to $500 a share. It's anyone's guess where the stock will be at the stock-holder meeting time.
3. Does Musk have to terminate the whole board? No. In my scenario, he only has to select three or four of the employees, and maybe one or two of the board members. Vijaya Gadde? Yeah, she's probably on that list of people to be let go. In simple terms....he's going to put a 500 lb guerrilla into the room, and just sit back to see what happens next.
Last week, you could have bought 100 shares for around $4,200. Now? It's pretty close to $5,000. In ten days, I think the same 100 shares will be around $20,000. A risky game? Yeah, and it reminds me of the Gamestop episode of 2021. If you remember that episode.....Gamestop eventually got up to around $360.
The funny part of this? We all want Musk to succeed.