SpyderCall
OP
TinkerB3ll
:
It does to me. At least for chip companies that sell to China. And even chip suppliers that get their cheap rare earth inputs from China. But thus chip war has been ongoing for a long time. So I won't believe it until I see it.
102640653
:
Would like ask u something . What is the meaning of prepaid forward contract. Heard sone news about SoftBank arrangements if a prepaid forward contract on Alibaba shares at a price of 100hkd where they were paid estimated in actual 90plus hkd . Discount of 10 percent. There was also many brokers which took advantage of insider news before the earnings release. It was a big stake and furthermore the brokerage house were themselves shorting it down. Just to clarify the means of a prepaid forward contract . How oi affect prices. Thanks. Anyway tencent n Shanghai markets doing well but Alibaba is being manipulative currently .
SpyderCall
OP
102640653
:
Prepaid forward contract is something like paying upfront for securities at a certain price to provide liquidity for one reason or another. But you will get paid back later when you sell the shares. And you are guaranteed the price that you paid when you get your money back. The investment bank or the company needed some immediate cash so they make an agreement like this. It has some similar aspects to a reverse repurchase agreement and warranted shares redemption.
TinkerB3ll : Does this sounds bullish? :)
SpyderCall OP TinkerB3ll : It does to me. At least for chip companies that sell to China. And even chip suppliers that get their cheap rare earth inputs from China.
But thus chip war has been ongoing for a long time. So I won't believe it until I see it.
TinkerB3ll SpyderCall OP : This will definitely fuel speculation.
102640653 : Would like ask u something . What is the meaning of prepaid forward contract. Heard sone news about SoftBank arrangements if a prepaid forward contract on Alibaba shares at a price of 100hkd where they were paid estimated in actual 90plus hkd . Discount of 10 percent. There was also many brokers which took advantage of insider news before the earnings release. It was a big stake and furthermore the brokerage house were themselves shorting it down. Just to clarify the means of a prepaid forward contract . How oi affect prices. Thanks. Anyway tencent n Shanghai markets doing well but Alibaba is being manipulative currently .
SpyderCall OP 102640653 : Prepaid forward contract is something like paying upfront for securities at a certain price to provide liquidity for one reason or another. But you will get paid back later when you sell the shares. And you are guaranteed the price that you paid when you get your money back. The investment bank or the company needed some immediate cash so they make an agreement like this.
It has some similar aspects to a reverse repurchase agreement and warranted shares redemption.
SpyderCall OP 102640653 : At least, that is my minimal understanding of it.
102640653 SpyderCall OP : Ok that’s good