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mehmeh42 t1_ja1ox9h wrote

They are trading this cheap because they offer so many shares to staff, the market dilution is killer on this one unfortunately. I own about 1000 shares at 8.5 was trading in it above but have been selling calls on every jump about $1-$2 lower and tracking the return. At this point idc where it goes I’ll keep selling against this bank until they start paying divs like every other bank. Hopefully this student loan disaster turns around for them and they can make all that back will instantly pump.

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Dpope32 t1_ja1p4xn wrote

Fingers crossed. I know multiple people who are holding until Biden has a clear answer on loan forgiveness.

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mehmeh42 t1_ja2jvox wrote

Either it is forgiven to not destroy the banking system as a whole from losses on A/R reductions on the BS and the gov pays, driving inflation higher. Or the gov forces people to start paying their loans back and A/R turns into Rev which wii be returnable earning rises …

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SnipahShot t1_ja3d6b5 wrote

>They are trading this cheap because they offer so many shares to staff, the market dilution is killer on this one unfortunately.

That is actually wrong.

A big portion of their SBC expense has nothing to do with dilution. A big portion of their SBC expense is related to PSUs they awarded during the IPOE process, PSUs that are related to the stock price.

A dilution will happen if the stock price hits $25 on a volume weighted average over 90 days within 5 years of IPOE. Same for $35 and $45. All 3 of which seem unlikely right now, and if they do happen will someone complain about dilution when they x4 their investment from now to the lowest price target within like 3 years from now?

Their dilution is about 5-6mil shares per quarter, on 930mil shares outstanding (less than 1% per quarter).

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