Perry Rod

From Philosopher 🤔 to Musician 🎸 to Retail degenerate investor 💎🙌 to hedge fund manager ⚡️ 💀 ⚡️ Nothing I share is investment advice

[Perry Rod @Perryhrod]

@tomcvegas Guess which beach is closest to SpaceX

[Perry Rod @Perryhrod]

@given2tweet Looks like sold July, bought August

[Perry Rod @Perryhrod]

@given2tweet @joshjames my favorite... the stock certificates as blankets 😂

[Perry Rod @Perryhrod]

@given2tweet But you’re not covering your long common position so you kill it if it does $5.50+ right? I’m tempted to cover it all and not be too greedy

[Perry Rod @Perryhrod]

@given2tweet If it’s 1x2 against common why not just think of it as 1x1 and a covered call position?

[Perry Rod @Perryhrod]

@given2tweet I don’t think it impacts anything.

Btw all you need to get articles like this for free is pay Michael Bloomberg $2500/mo. Nbd

[Perry Rod @Perryhrod]

The hit piece is on Josh James. The writer broke the sex assault story on him in March 2024. This is a follow up. Unfortunately, she only talks to one analyst who happens to be the most critical guy on the company. But it’s mainly just interviewing former employees who probably all hate the CEO.

The only thing new in this article is his drunk driving incident, and that he put his house for sale and has been in Japan.

My first thought was I wonder if RPD was contacted about this story and that contributed to why they were selling down their shares before earnings. Other than that this is just awkward timing and I doubt it’s motivated against the business or strategic process.

[Perry Rod @Perryhrod]

@tomcvegas @given2tweet That is, unless their legal is reading this now and is like “uh oh we fucked up again!

[Perry Rod @Perryhrod]

Thanks. You know what's crazy is I think *most* of the major CEOs in America use this company's software and are very familiar with the name. So a TON of people are seeing it being shopped at what, 1X revenue? So even though it's so tiny, it's also pretty high profile and well known and impacting software valuations out there

[Perry Rod @Perryhrod]

I think they didn't fuck up, necessarily, now that you hashed it out and I think about it. I think they were greedy and wanted to keep the shares and used those two days to have legal review the possibility... then they realized they have too much mnpi so they have to sell and did it immediately yesterday morning.

But like you said, selling to the public could only happen if there is a positive takeover not a takeunder to avoid being sued, so this is very bullish

[Perry Rod @Perryhrod]

@given2tweet I mean there's so much overall gray area with this stuff I can see management arguing with their legal and saying "we're talking about a million dollars here not a billion dollars nobody will care, let's just do it."

[Perry Rod @Perryhrod]

Maybe the decision-making process is in a gray area for exactly this kind of scenario. But I'm pretty sure regardless if it went to court they'd HAVE to argue they made the decision before they knew anything. That's why legal counsel - I would think - wouldn't like the way this looks.

[Perry Rod @Perryhrod]

@given2tweet It's not about what's disclosed it's about when was it decided and put into a plan. You can't just decide to not sell stock for taxes after you know something material that it will benefit you

[Perry Rod @Perryhrod]

@given2tweet I mean, I would think the argument for no vesting (or withholding) this year - no matter what - is that they decided that before they had mnpi.

I don't know what the "other outcome" could be here. But, you know, some sh that comes out of left field is part of this territory

[Perry Rod @Perryhrod]

@given2tweet It could be management purposely showing confidence while bluffing about the deal... it's not strong pushback, but in the context of your more likely scenario of legal allowing them to do something kind of reckless, it's plausible.

What's implausible now though is a takeunder

[Perry Rod @Perryhrod]

@given2tweet tell that to the boys at RPD

[Perry Rod @Perryhrod]

@given2tweet I agree. But ‘where is legal?’ is the only pushback I have here

My best guess is they just didn’t consider that investors might think the process could end in a takeunder. They assumed everything they put out points to a higher price.

[Perry Rod @Perryhrod]

@given2tweet I would think legal would say you're in a process and you should do what was done last year

[Perry Rod @Perryhrod]

@given2tweet So? The next q is was the decision made after they had mnpi or before?

[Perry Rod @Perryhrod]

@given2tweet yeah but I'm specifically talking about the not withholding vs witholding last year and fully vesting vs not last year ... all with mnpi