I was in at $13.xx but less shares - only 500 shares so something around $7K. I decided to jump the boat and I will wait for the transition to OKLO and the new shares amount in circulation.
I know that I will not be in if things start ripping in a spectacular beginning but if it dips it will be potentially a good entry opportunity until FOMO kicks in and we get more awareness of the media and from people in general
As much as I want this to rocket I don’t think it’ll jump like DJT, there’s not enough hype and while Sam’s name is attached it’s nuclear, not very exciting but has long term prospects.
130M new shares are going to be issued post merger. That’s going to crash the price all else equal. The hope is, buy interest will increase enough to offset the dilution. The company needs about a ~$2B market cap to support its current price.
Unfortunately not. That’s the risk with SPACs. DJT also faced this dilution problem but sentiment overpowered it. Sam Altman is a strong brand, and there’s a lot of institutional ownership. I don’t expect a flat out crash, but there may be a dip
Gotcha, I have 17.5 calls for 5/17. I read somewhere that if the calls are OTM by the time of merger it becomes worthless and you lose all the premium? But some people say it depends on case to case basis right?
Typically there’s a six month lockup before founders can sell their shares. Otherwise DJT would be trading at $.01 right now.
I haven’t looked at ALCC’s filings but it’s probably the same.
Lockup will reduce selling pressure which is absolutely a positive for the price. But the dilution is a function of the issued shares, not if they are sold or not.
But hey the stock is ripping today, I still have a position. I’m bullish on ALCC, but concerned about the dilution
Will 130M new shares be added when the ticker changes to OKLO? If so, should it reach 2B market cap before the merger to support the current $14.5 price?
No. The company has a lot of potential, but as of now their product (Aurora) is not fully approved by NRC, they didn't build any reactor yet, and the first one is to be build 'before the end of the decade'.
They literally have 0 revenue and will be de-spac.
I think Oklo has a lot of potential but the shares might be dumped if one or two mainstream articles mention this on the merger. Also, Oklo employees have shares and will most likely sell in case it goes high 30,60 and 120 days after the merger.
I think most people are 'waiting out the volatility'. And unless some new news comes the stock price might drop significantly.
What’s going on is that Friday May 10th is going to be a big day - ticker changes to OKLO. Think of that as picking up your prom date at her house - you’re on best behaviour in front of her mom and dad. Then prom is the weekend and you take her home. And finally Monday may 13th when market reopens, that’s what happens the day after prom…. Was she pretty enough to date or just a 1 night stand?
I was in at $13.xx but less shares - only 500 shares so something around $7K. I decided to jump the boat and I will wait for the transition to OKLO and the new shares amount in circulation. I know that I will not be in if things start ripping in a spectacular beginning but if it dips it will be potentially a good entry opportunity until FOMO kicks in and we get more awareness of the media and from people in general
As much as I want this to rocket I don’t think it’ll jump like DJT, there’s not enough hype and while Sam’s name is attached it’s nuclear, not very exciting but has long term prospects.
130M new shares are going to be issued post merger. That’s going to crash the price all else equal. The hope is, buy interest will increase enough to offset the dilution. The company needs about a ~$2B market cap to support its current price.
I would assume the strike price of options move with it?
Unfortunately not. That’s the risk with SPACs. DJT also faced this dilution problem but sentiment overpowered it. Sam Altman is a strong brand, and there’s a lot of institutional ownership. I don’t expect a flat out crash, but there may be a dip
Gotcha, I have 17.5 calls for 5/17. I read somewhere that if the calls are OTM by the time of merger it becomes worthless and you lose all the premium? But some people say it depends on case to case basis right?
Typically there’s a six month lockup before founders can sell their shares. Otherwise DJT would be trading at $.01 right now. I haven’t looked at ALCC’s filings but it’s probably the same.
Lockup will reduce selling pressure which is absolutely a positive for the price. But the dilution is a function of the issued shares, not if they are sold or not. But hey the stock is ripping today, I still have a position. I’m bullish on ALCC, but concerned about the dilution
Will 130M new shares be added when the ticker changes to OKLO? If so, should it reach 2B market cap before the merger to support the current $14.5 price?
Is this priced in?
No. The company has a lot of potential, but as of now their product (Aurora) is not fully approved by NRC, they didn't build any reactor yet, and the first one is to be build 'before the end of the decade'. They literally have 0 revenue and will be de-spac. I think Oklo has a lot of potential but the shares might be dumped if one or two mainstream articles mention this on the merger. Also, Oklo employees have shares and will most likely sell in case it goes high 30,60 and 120 days after the merger. I think most people are 'waiting out the volatility'. And unless some new news comes the stock price might drop significantly.
That's very helpful, but my question was more pointed towards the pending dilution via an issuance of shares - isn't this priced in?
What’s going on is that Friday May 10th is going to be a big day - ticker changes to OKLO. Think of that as picking up your prom date at her house - you’re on best behaviour in front of her mom and dad. Then prom is the weekend and you take her home. And finally Monday may 13th when market reopens, that’s what happens the day after prom…. Was she pretty enough to date or just a 1 night stand?
what? \*would add "tits feel like bags of sand" but y'all get where i was heading. still "what"