What is up, everybody welcome to traders trades where we have technical analysis of different stocks on the stock market, as well as potential buy, hold or sell opinions on these given stocks, i like the preface by saying that i'm not a financial advisor nor expert - i am Just some random dude on youtube, so take what i say with a grain of salt. The reason i started this channel is because a couple years back, i was about thirty thousand dollars deep in some really bad medical debt, and i was very lucky to have some close family friends and mentors that pushed me to work really hard and invest my money In the market - and i am now a financially free guy - so if i can pass along any of the information resources or tools that were shared with me to you guys and change your lives just a little bit for the better. That's all a guy can ask for. Lastly, if you wouldn't mind dropping a like on the video, it really does help support the channel and these presentation style videos do take longer to prepare it's because i want to do some solid due diligence and research to get you guys.

The information you need so please support the video. Please support the channel that mean a lot and consider subscribing if you'd like to see more content like this, i do cover micro vision very frequently just about every day. Sometimes more. I really love this company.

I love. I love talking about it and i love answering all your questions so with that being said, let's get into today's video. I have been asked on multiple microvision videos trey. What is going to happen if microvision is acquired? How much money am i going to make microvisions acquired who's going to acquire microvision? What is an inquiry? Well, i think this is a lot easier than than answering 10 000 different comments asking and asking about it, and that's that's gon na make things perfect because you can you can reference this at any given time.

So, let's just get right into the video. What is an acquisition one company purchases most or all of another company's shares to gain control of the company purchasing more than 50 stake allows acquirer to make decisions about newly acquired assets without approval of shareholders, and that might sound a little bit negative and it can Be a little bit negative, i'm not going to be around the bush. Sometimes a company acquisition is not mutual meaning that the company that is interested in acquiring the other company can simply just buy a 50 stake or higher in shares and all of a sudden they control the company they uh. They they get control over the shareholders.

They have control over the newly acquired assets; they can make company decisions without the prior management's, prime management's approval and that's sometimes not mutual. Do i think this is going to happen with microvision, not at all, not at all lidar tech, ibas tech. This stuff is awesome, and i really think there are some companies that are genuinely interested in striking a deal with microvision, so i think that's more likely the route that we're going to go and we'll talk about that later. Why make an acquisition? Well? The reason may include a couple of different things right, so economies of scale diversification, greater market share, increased synergy, cost reductions and niche offerings, and the ones in here that, i think, will impact microvision.

The most are the economies of sale, greater market share and cost reductions and cost reductions is huge, so they're a tech company guys - and i don't know about you, but i own a gaming computer uh, it's one of those uh i buy power, i think, is the Brand of it i own one of these, and it was like 1500 bucks right for my whole setup, and i imagine that microvision is working with computers that are probably ten times more expensive than this, and they probably have you know dozens or hundreds of them that They need to work with every day. Well, let's, let's just assume that uh, you know apple or microsoft, buy out microvision, you think, there's any chance. They're gon na they're gon na sell them some computers for a little bit cheaper or that they'll even have to sell computers. You know, since they make them, probably not that's, probably going to reduce some costs.

It's just you know these kinds of things right. It's all about who's acquiring the company, what they're able to do for them, um greater market share so obviously being acquired by apple or microsoft, is going to just by the nature of who's acquiring you increase the market share, which is which is beautiful. Do i think those two companies will buy out microvision? Well i'll, tell you my opinion later, but i do think there is going to be an acquisition. However, when that's it, that's a different question, but i do think it's going to happen.

We're just waiting on the right timing entering a foreign market. That's another reason i don't think that's that's particularly the reason for microvision, but it is a reason that you know a company may have an acquisition go down so like, let's say ford, all of a sudden. Really wanted to branch out in china, so they're they're in talks with neil. You know this is completely hypothetical.

I don't think this would ever happen, obviously, but they they talked with neo and neil's like yeah. Okay, well uh we'll acquire you, but you need to enter the foreign market. You need to come here in china and put your stock on the chinese listings. That's an option, growth strategy.

I think this is the largest thing for microvision. They. They are looking to make money and they've stated before in their their q3 financial statements that they are actively pursuing ways to increase company share company value and shareholder value, and that is a perfect way to do it as an acquisition. And i really do think this is going to happen, especially with a 740 billion dollar defense bill that passed and microsoft has some ties in that i keep hinting at microsoft, but i just think that's probably the most likely acquisition to happen.

We don't have any news, yet this is all speculative. So this isn't me telling you hard data. Uh microsoft is acquiring microvision. I don't want to see that in the comments, because it's not true, but it is possible guys.

It really is. That could definitely happen. Excess capacity reduce competition. This is a huge hint, so you probably are aware already, but vldr is a comparable company worth a little bit more per share than microvision and there's some competition, and i guarantee you if this company is acquired by another company like microsoft, apple ford, hypothetically tesla.

I know people think that elon musk would never uh would never acquire microvision because he doesn't like lidar but uh. I was reading this and this was very interesting to me. Uh somebody who is planning to acquire a company is not going to say anything good about the company, because that is going to increase the price of which he has to buy it at oof heavy, so maybe elon musk would want it. Who knows? It's tough to say it's all speculative gaining new tech, and that is obviously huge for microvision.

I won't even get into that. You already know you already know acquisition versus takeover versus merger, so an acquisition. These are the three different types of ways that a company can be acquired. An acquisition is mostly amiable, mostly benefits both target acquiring and target companies, so this is kind of what we're looking for with microvision is an acquisition.

That's probably the most likely thing to happen. A takeover, however, is usually in hospital hostile and not a free will. So this is purchasing over 50 percent of the shares, and at that point you get to decide. You know uh what you do with certain assets of the company without shareholder approval.

You get to make different management decisions, all that sort of stuff mergers. Mutual, creates a new company typical of companies of similar nature in size. So you can think of lca like acadia holdings and gnog golden nugget. That is exactly what happened there.

It's a it's! A new company, so two prior companies came together merged and now you've got golden nugget gaming right. So that's another option. I don't think that's going to happen with microvision, but it is a possibility. Now.

All of these do have different financial incentives. A merger typically called the spac stock. This will shoot up the share price on a stock as well as an acquisition, but this you're looking at a longer time frame, because, typically, we have a hard date in which we're expecting a merger like we had with lca and once that hard date comes out. Typically, the stock price will steadily and slowly increase up and up and up until the merger date, and then the merger hits the ticker symbol.

Changes and it'll usually drop a little bit the next day. You know five, ten percent people will take profits because it's uncertain. What's going to happen with the company, but typically merger companies do pretty well the stock price recovers and it goes back up and people make a lot of money, but that is an option for making quick cash is through mergers and spac stocks. An acquisition, however, as we talked about um, is a little bit different.

They actually i haven't talked about it. That's the next slide, just kidding all right acquisition candidates, all right so they're looking for is there is the price right, examine the debt, undo, litigation and scrutinize. The financials, so a company that looks to acquire microvision, is going to be looking at all right. How much is the share price valuation at the moment, how's their debt situation? Looking? Are they under uh litigation, meaning do they have any sort of uh legal issues that we have to deal with and the financials? How are they looking how's their cash flow? Are they making money? Do they have any assets that we can liquidize? If we need to do they have any liabilities how's their cash flow, all this stuff matters and companies are always going to look at that so microvision.

I believe you know it's hard to say for sure. I think this is most likely to happen after april when they, when they have a presentation on their automotive lidar systems. However, if it is possible that the company they're in talks with could already know about all this stuff and be willing to take that on, we just don't know so how much money do i make if mbis is acquired? This is what we all want to know right. This is the this is the grand prize at the end.

Well, this is inquiry dependent. Now there is uh. There is a couple different ways that a company can pay its shareholders uh when when they are acquiring the company and the options include, you are paid per 1 billion dollars in sales. So, hypothetically, let's say that ford is going to acquire microvision and they say all right guys.

We think your company is worth 5 billion. This is what we're gon na pay you all right. So at that point uh the shareholders are going to be paired and paid a cut of that five billion dollars and you are paid a multiple of the sale per one billion dollars. So the current share price is sitting at five dollars and 30 cents you'd be paid five times that for twenty six dollars and fifty cents per share, and i have also seen some deals where they will just set a hard number in which um they pay per Share price so like per five billion dollars in sales, ford might say all right: we're willing to pay you five billion dollars or um seven uh, seven dollars per share times that five billion dollars and they'll set okay.

This is what we think the value of your share is right now and we'll pay that 5 billion times that so that'd be 35, and you know it varies a lot. There's no way to know exactly how much you're going to be paid in in the merger. Not the merger, the acquisition, but it is a lot, and i have a couple of examples that i'm going to show you. Another option is you're paid in the new company stock, meaning that okay, however many shares you had in this company when we acquire them we're going to give you the exact same amount of shares in our company and typically it's going to be worth more money right.

I think you know: microvision is trading at 5 and 30 cents right now and if they're bought out by microsoft and microsoft says all right. We're gon na we're gon na make our whole new lidar and ivas and uh and tech company, and they decide to name it. Something else. Well, you're gon na get shares in that, and just because it's made by microsoft, it's already off the bat.

I'd almost be willing to bet you, money could be worth more than 530, so you'd make money or you could be paid a hard set price per share, and i have a couple examples that i will show you. I think the most likely scenario is going to be right here. This is the one that i've been reading about the most um, so just keep that in the back of your mind, it is of course, hard to say how much we will get paid, but it will be a lot if there is a merger date now. This isn't me telling you to sit here and hold shares and buy expecting a merger date right.

That's a bonus. You don't buy a company simply for a merger or for an acquisition right. We are. We aren't buying, shares blindly hoping for an acquisition.

However, it is possible to happen so if you believe in a company like, i believe in microvision, i think this this company is going to be a huge growth stock in the next year, two years and you're willing to hold it for the company itself like. I am like others are, you know um. This is a great way to maximize profits, while also having the capability of the company being acquired and having this that additional upside right. So we don't buy companies solely for being acquired unless you find out that day, they're getting acquired, in which case, why not you know i wouldn't blame you for that quick coffee break hold on.

Ah, that's good stuff, all right enough about that. Let's get going! How will i know if mvis is being acquired? Well, news will be scarce, but the stock price will skyrocket. The day of i've got a couple of examples here, so gci on january 11, 2020 closed at 9, 75 january 14th opened at 11 56 and they were offered an acquiry that weekend for 12 dollars a share. So you should see a very exponential increase in stock price.

The day of that's a pretty good sign that insiders, big institutions, um wall street, any of those big wig buyers, know that something's about to go down and honestly, even if an inquiry doesn't go down, i don't know why you wouldn't want to ride along on on A really gnarly hype ride. You know that's a great way to know. This is typically what's going to happen. Red hat 49 increase one day after ibm acquire they went from 116.68 to 190, a share that is filthy, absolute filth, nuts, oh anyways.

That is a way that you know when a stock is going to be acquired. You should see a very drastic spike in stock valuation and you might have thought to yourself well hold on a sec. This stock was trading at like two bucks. A share a couple weeks ago and it went up to 9.75 - why didn't it get acquired like? I said this is just a sign that it could be being acquired.

It's not a 100 guarantee, but typically when there's no news - and this is the key - the key thing when there's no news and a company's stock price is skyrocketing, there's a reason for it. You might not know it, but there's a reason for it. Things don't happen. Randomly in the stock market, it all is planned, there's always things happening and the more that we can pay attention to these kinds of things, the more we can benefit from institutional buyers from these acquisitions from mergers from from news catalyst from public relations.

All these things tie in so that is most likely the way you're going to know if the company is being acquired with that being said, that is all that i have on acquisitions, mergers and takeovers. I hope that answers some of the questions. I tried to make a presentation that that kind of encompassed all the questions that have been asked in the comments section. So let me know if you have any more questions, i would love to answer you and i appreciate your time happy new year, my friends, if you enjoyed the video, please drop a like, it really does help support the channel.

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