Today we are watching…
1. T-Mobile (#tmus)
There’s a legion of investors taking short positions in telecoms network T-Mobile this week, all in anticipation of a quick trade next week. There are very well-sourced rumors from Tokyo suggesting Masayoshi Son, the leader of Softbank, wants to sell up to one-third of his T-Mobile stake. It will happen on either Monday, Tuesday, or Wednesday, and such a massive stock dump could freak out other investors. The most excited short-sellers are predicting a flash crash as current T-Mobile shareholders are asleep at the wheel. The rumors make sense. Son needs cash to keep his Vision Fund above water with a 300-year investment horizon. He’s got to get through 2020 first!
2. Boeing (#boeing)
If you’re an investor in a national security business struggling in lockdown, you’re going to be mad at Boeing. The commercial jet-maker is holding funds hostage in a $17 billion relief fund. The United States Treasury doesn’t want to payout in case Boeing needs the cash later. It passed on the $2.2 trillion Cares Act government loans because it was able to raise money that didn’t need paying back from the stock market in April, diluting current shareholders, of course. Boeing has registered interest in the fund now, but it may not matter. Steve Mnunchin wants to relax the stimulus requirements so that all national security companies can access the money, no matter where Boeing stands.