Now that I’ve had ~72 hours to reflect on getting screwed by Dell / talk to some other Dell victims (disclosure: long DVMT), I wanted to provide a quick update to my Tuesday write up. In general, I think everything I said was within the realm of reasonableness. The biggest pushback I got was on my part about bumping in cash instead of stock. Several readers (correctly) pointed out that I shouldn’t use the stub equity value to value Dell’s equity; instead, I should use the implied equity value (i.e. the stub equity value plus the value of all of their equity stakes) because that’s the market cap Dell will actually have. A silly mistake on my part (though, to be fair to myself, mistakes tend to get made when you’re rushing through a situation / deal in less than 24 hours!).
Some $DVMT updates and additional thoughts
Some $DVMT updates and additional thoughts
Some $DVMT updates and additional thoughts
Now that I’ve had ~72 hours to reflect on getting screwed by Dell / talk to some other Dell victims (disclosure: long DVMT), I wanted to provide a quick update to my Tuesday write up. In general, I think everything I said was within the realm of reasonableness. The biggest pushback I got was on my part about bumping in cash instead of stock. Several readers (correctly) pointed out that I shouldn’t use the stub equity value to value Dell’s equity; instead, I should use the implied equity value (i.e. the stub equity value plus the value of all of their equity stakes) because that’s the market cap Dell will actually have. A silly mistake on my part (though, to be fair to myself, mistakes tend to get made when you’re rushing through a situation / deal in less than 24 hours!).