This massive company is looking to build its cash reserve
A Japanese tech conglomerate is beginning the process of freeing up assets.
SoftBank isn’t buying into the optimism surrounding the Coronavirus.
CEO Masayoshi Son announced that the company is looking to reduce its substantial debt and build a nice cash reserve due to the uncertainty surrounding the pandemic.
And the first company going to feel the burn?
The company announced yesterday that they plan to offload more than 198 million shares of the cellular stock – totaling up to about $21 billion.
This is nearly two-thirds of the companies stake in T-Mobile.
Son expanded on the decision to downsize their portfolio, saying…
“Given the current situation where there is a concern for a second and third wave of the spread of COVID-19, (SoftBank Group) believes that it needs to further enhance its cash reserves.”
Where’s the money?
TMUS took a hit following this announcement.
But this shouldn’t come as much of a surprise seeing that SoftBank held roughly a 9% stake in the company before the recent announcement.
And I’m sure SoftBank won’t be the only one unloading shares of this cellular stock.
So, while the knee jerk reaction may be running far away from this volatile situation – I see a profit opportunity in the making.
It doesn’t involve tying your money up in the stock for the long run, either.
In fact, I’m looking for a fast track win, using this recent announcement to our advantage.
Here’s what I mean…
How can I get some?
What we are currently seeing with TMUS is what I’ve been trading for years…
Institutional order flow.
The institution? SoftBank
The order flow? The sell-off over nearly $21 billion in TMUS assets.
The opportunity? Playing this recent announcement for massive gains.
With such a massive sell-off impacting the TMUS stock, it’s creating a great setup for the short term.
So, I will be looking at puts on this cellular company to play this recent announcement.
As far as expiration, we’ll be looking for puts with at least two weeks left till expiration to keep our risk at a proper risk level.
By loading up on TMUS puts, we’re setting ourselves up to profit off this unfortunate announcement for the company without tying our money up in what could be a stock that suffers for the foreseeable future.
(This type of trading research is exactly the type I follow at Project 303 – except you won’t see every institutional order flow in the headlines. But thanks to my proprietary scanner, we never miss an opportunity. If you’d like to learn how to get in on the next one, click here.)
In the Spotlight: The rise of plant-based meat continues
Plant-based meat products have taken the market by storm.
It seems like everywhere you turn, a well-known restaurant adds some form of alternative meat to their menu.
The newest name in this game?
The company announced on Tuesday that it would be selling Impossible Foods Impossible Break Sandwich in most of its locations in the US.
Truthfully, I don’t think Starbucks will be the last major corporation to add plant-based meat options to its menu.
With that said, the alternative meat industry we’ve heard a lot about over the last year.
And with its rapid expansion, I’m going to be keeping a close eye on that sector.
Because we could be looking at the future of the food industry, and that’s something I’m not going to miss – and neither should you.
So, I’ll be keeping you updated.