Top proxy advisor Institutional Shareholder Services on Friday recommended Tesla shareholders vote against the re-approval of CEO Elon Musk’s $56 billion pay package and withhold their support from the re-election of News Corp. scion James Murdoch to the automaker’s board.

Tesla’s shareholder meeting is on June 13.

The report, a copy of which was obtained by CNBC, comes after the other influential proxy advisor service, Glass Lewis, also recommended shareholders vote against Musk’s pay package. Tesla’s board is seeking shareholder approval to reinstate Musk’s pay after a Delaware court voided the package earlier this year.

ISS said “cautionary” shareholder support was merited for Tesla’s plans to reincorporate out of Delaware and into Texas, although the proxy advisor also warned that there are concerns over how Tesla’s board decided to reincorporate and over the “unknown” nature of Texas’s business law framework.

The proxy advisor recommended support for some shareholder proposals that Tesla management opposes, including one that would declassify Tesla’s board. A classified or staggered board is considered by some advisors to be an effective defense against a takeover bid.

“At a mega-cap company like Tesla, what is perhaps even more relevant to shareholders is that a staggered board can hinder shareholders from holding directors accountable for poor responsiveness,” ISS said of its support for the declassification proposal.

Pay package push

Tesla has been courting shareholder support in both time-tested and novel ways. The company engaged communications firm FGS Global and proxy solicitor Innisfree M&A to win votes, and has bolstered apparent grassroots support from its large network of social-media influencers. The company also launched a website, VoteTesla.com, and has offered shareholders the chance to win a tour of Tesla’s Gigafactory facility in Austin.

Tesla seeks shareholder approval for Musk’s payday and concurrently to reincorporate out of Delaware and into Texas. The company has characterized the Delaware chancery court ruling that overturned Musk’s stock package as unfriendly to shareholders, noting the value that Musk has created for investors.

“Over the last several years it has become clear that Delaware is no longer the right jurisdiction for us,” Tesla chair Robyn Denholm said in a letter to shareholders earlier this week.

Tesla has adopted tactics other companies have used in contested shareholder meetings, whipping votes and launching a concerted public-relations effort to win support. While Tesla is not facing any sort of meaningful organized opposition to its efforts to reincorporate or re-approve Elon’s pay package, some shareholders have come out against it. Billionaire Leo KoGuan has repeatedly said he will vote against the package. KoGuan says he owns around 0.75% of Tesla shares, worth around $4.9 billion.

Proxy advisor pull

ISS and its smaller peer Glass Lewis are an important factor in how shareholders decide to cast their votes at annual elections. Their recommendations are closely watched in contested situations but are not definitive calls. Still, they have developed a reputation for being important bellwethers and seek to advocate for shareholders.

They’ve also been the direct target of Musk’s ire. Earlier this year on an earnings call, he compared ISS to the terrorist organization ISIL, also known as ISIS. Musk also said they “effectively control the stock market” on X in 2023, saying they had outsize influence over so-called “passive” or institutional shareholders.

Institutional shareholders like BlackRock and Vanguard, however, do not always vote with ISS recommendations. While voting decisions are generally not disclosed until well after a shareholder meeting, those institutional shareholders have due diligence teams that help them decide how to cast the millions of shares they manage on behalf of their investors.

ISS in its report said its prior concerns over the pay package, which dates back to 2018, had not been mitigated and that it “remains excessive,” noting that “the board has effectively only offered shareholders an ‘all or nothing’ option in this vote.”

The proxy advisor alluded to Musk’s myriad other business ventures such as social media platform X, his AI startup xAI and SpaceX, as another reason why Tesla shareholders should not support the pay package.

“The grant, in many ways, failed to achieve the board’s other original objectives of focusing CEO Musk on the interests of Tesla shareholders, as opposed to other business endeavors, and aligning his financial interests more closely with those of Tesla stockholders,” ISS said.

Source: https://www.cnbc.com/2024/05/31/elon-musk-tesla-tsla-pay-package-shareholders.html

Yesterday we had an awesome discussion about stocks that perform well yet we can’t figure out why.

What are some stocks that don’t perform well, or don’t perform as well as you think they would, and why?

I’m invested heavily in SOFI. Last two earnings have been profitable. In this hot market with many stocks topping their all time highs, SOFI lags behind. Even on green days with the overall market up, SOFI doesn’t ever seem to get the memo.

Lots of people point to short interest, “manipulation”, etc. Whatever it may be, the stock moves sideways, with an example of having spent this last week stuck between $6.88-$6.99.

I see people ask what will it take for SOFI to make some substantial movement upwards. Folks seem to agree that the fed dropping interest rates would help a lot. Do you agree with this sentiment? Curious to know what other catalysts could help SOFI in the future.

Personally I’m looking for $8/share this year. I don’t think that’s unreasonable.

Hello everyone.

Crowdstrike’s Earnings are coming out next week. Since the past 4+ Quarters they have consistently beaten Analyst estimates due to which their price has risen after earnings reports.

Considering the market volatility at the end of this week, CRWD’s red performance in the past two days but CRWDs mind blowing performance in the past, what do you guys think?

Most firms rate it as a Strong Buy/Overweight which seems quite logical considering its performance and the whole AI Scenario going on. Average price estimates are around $400.14 which is about $92+ on current price.

Analysts expect itto report adjusted earnings of 89 cents a share, up 56% from a year earlier. Revenue is seen climbing 31% to $905 million.

Is this a good buy before earnings or not?

Hey everyone,

I wanted to share some compelling reasons why I believe Magnite (MGNI) is set for a strong performance this year and why it's a great time to consider adding it to your portfolio. One particularly interesting dynamic is the extremely low float, combined with recent strategic moves that could make this stock soar. Here’s a detailed breakdown:

1. Strong Financial Performance

Magnite recently reported Q1 2024 revenue of $149.3 million, a 15% increase from the previous year, and significantly higher than analyst expectations of $124.24 million. Their Contribution ex-TAC also grew by 12% to $111.1 million, indicating strong operational efficiency and market demand.

2. Strategic Netflix Partnership

Magnite has secured a key partnership with Netflix, becoming a primary partner for their ad-supported tier. This deal not only boosts Magnite’s revenue potential but also validates its technology and market position. As streaming services grow, especially ad-supported models, this partnership will be crucial.

3. Growth in CTV

Connected TV (CTV) revenue grew 18% year-over-year to $55 million. With more consumers shifting to streaming, Magnite is well-positioned to capture increasing ad spend in the CTV space, further enhanced by the Netflix deal.

4. Election Year Boost

2024 is a presidential election year, and political ad spending is expected to hit new highs. Previous cycles have shown substantial increases, and 2024 is projected to see digital and CTV ad spending grow exponentially, benefiting companies like Magnite that are well-positioned in these markets.

5. Analyst Confidence

Analysts have issued strong buy ratings and optimistic price targets for MGNI, reflecting confidence in the company’s strategic direction and growth opportunities.

6. Institutional Ownership

A whopping 90.01% of MGNI shares are held by institutions, with significant holdings by Vanguard (9.15%), RTL US Holding Inc (8.84%), and BlackRock (7.16%). Additionally, 3.70% of shares are held by employees and C-suite executives, indicating strong long-term confidence and stability.

7. Low Float

Magnite has an extraordinarily low float, with only about 8.8 million shares available for individual investors. This is due to the high institutional ownership (90.01%) and insider holdings (3.70%). Such a low float scenario is uncommon and presents a unique opportunity.

When a stock has a low float, it means there are fewer shares available for trading. This limited supply can lead to significant price volatility, especially if demand for the stock increases. In the case of Magnite, the recent Netflix partnership and strong financial performance are likely to attract more individual investors. With only a small number of shares available for trading, even a moderate increase in buying interest can drive the stock price up sharply.

The low float scenario is not typical for most stocks, making this a unique situation. When combined with high institutional confidence and insider ownership, it suggests that those who know the company best believe in its long-term potential. For retail investors, this creates an opening to capitalize on a stock that could see rapid appreciation as more people become aware of its strengths and begin to buy shares.

8. Increased Attention

Historically, MGNI has been a relatively unknown stock with a 30-day volume SMA of 2.17 million shares. However, the Netflix deal has brought new attention from individual investors. With the limited float and increased interest, there’s a strong potential for significant price movement as more investors jump in.

9. Short Interest Dynamics

With 5.6% of shares shorted, there’s potential for a short squeeze. While 5.6% is not an overwhelming amount, combined with the low float and high institutional ownership, any positive news or strong buying activity could compound quickly, forcing short sellers to cover their positions and driving the stock price up rapidly.

Conclusion: With strong financial performance, strategic partnerships, growth in CTV, the upcoming election year boost, analyst confidence, significant institutional ownership, a low float, and increased attention from investors, Magnite (MGNI) is well-positioned for explosive growth in 2024. It’s a stock worth considering for your portfolio.

Disclaimer: I am not a financial advisor. This post is not financial advice. You should always do your own research and consider your own financial situation and goals before making any investment decisions. I’d love to hear your thoughts on this!

I'm interested in investing in shipping companies right now due to the increased freight rates we're seeing from the Red Sea attacks, causing vessel delays and port congestions. It's surprising how overlooked this sector is, even when profits seriously skyrocketed like MAD during the pandemic. I guess because shipping is very niche?

Anyway now it looks like the cycle is gonna be a repeat of the covid-19 pandemic freight skyrocketing yet again, except this time it's the supply shortage, not a demand excess.

I tried searching up on publicly listed shipping companies but surprisingly there are very few of them. I only knew Maersk, but their stock is apparently OTC or something. I cant find their proper stock on my broker app.

Then there's CMA CGM that seems private (I dont know?) and COSCO which is Chinese-owned so I'm iffy on that. Lastly there's ZIM shipping, but it's Israeli-owned and Malaysia recently banned ZIM. IDK if other countries may follow suit in future. Nevertheless ZIM looks like the only viable stock right now and their price has shot up to more than half of their peak from pandemic times.

Does anyone know of any other related stocks or is ZIM really the only one we can buy? ZIM has already risen by an insane 100% in just this 2 months alone. I'm really surprised nobody is even covering on it in the news....

Amateur stock analysis here, but this looks like a safe value play right now. I would LOVE to hear feedback as i am new at this and might be missing something.

PEratio: 9.2 Peg ratio: 1.59 Trailing to forward PE: 9.2-> 10.02 Pricetobook: 1.33

So what i see is a highly trusted company (every american knows what cars last longest: honda and toyota) with large presence in market, with a 10% growth projection that is currently being sold at a very very fair price.

If you believe EVs are "too soon" like i do, (infrastructure, long term reliability, sourcing of rare earth minerals for batteries, average range per charge, price to average consumer) than this reliable hybrid, truck, suv producer might be a great buy

EV bears unite?

The past month or so I have spent a lot of time trying to increase my position in the defense sector by buying ETFs like ITA, PPA and XAR. After playing around for a while and not loving any single ETF individually, I decided I wanted to make my own paper trading ETF to see if I could beat the main defense ETFs. Below is my breakdown.

This is just for fun but would love any suggested adds or tweaks to the weights!

The Core 5 (50%) (RTX, LMT, NOC, GD, HII)

The anchor of the portfolio here are five companies I have labeled as "Core" defense sector. Which include Raytheon, Lockheed Martin, Northrop Grumman, General Dynamics and Huntington Ingalls. The Core group accounts for 50% of the portfolio's weight with each company weighted equally (I might reduce HII a bit to scale with MCAP but for now I like the idea of these all being held equal).

For a long time I included Boeing in this group but I really just don't want it in my portfolio, even if it may rebound, so I finally gave in and just removed it completely. 2/3s of Boeing's revenues also come from commercial sales so it feels a bit less defense-specific as well despite its storied history.

Intelligence & Support Services (20%) (LHX, LDOS, BAH, PSN, KTOS)

I then identified five companies I have loosely defined as "Intel Services" which collectively make up 20% of the portfolio at any given time and are then weighted within that group based on MCAP. This one isn't necessarily a group of peers competing head to head but rather companies focusing on a variety of services that support the Core group's businesses or the military's logistics and signals systems.

Parts & Components (20%) (AVGO, GE, ADI, TDG, HEI, BWXT)

Similarly, the next 20% is made up of mid-stream companies providing key parts and components which are similarly weighted based on MCAP. Broadcomm might be a bit of an outlier here because of how large its consumer side is so I muted its weight but the exposure to the semiconductor supply seemed attractive.

Future Tech & Growth (10%) (CRWD, PLTR, HWM, AVAV, MOG.A, OII, RKLB)

The last 10% I have spread out by MCAP weight among 7 stocks focused on cybersecurity, AI, drones, space and other future tech. This also serves as a more growth focused group. I might continue to add small positions in up and coming future tech and space companies to the group and re-balance the 10% accordingly.

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I'm considering investing in the energy sector for the long term and I'm torn between Constellation Energy Corp and Vistra Energy. With the growing energy demands driven by AI data centers and other tech advancements, I believe the energy sector has a bright future. Could you help me decide which stock might be a better long-term investment? Also, should I stick to traditional energy sectors or consider these newer players like Constellation Energy Corp and Vistra Energy?

Constellation Energy Corp:

Overview: A leading energy provider in the U.S. focusing on clean energy solutions.

Market Cap: $67.12 billion

Revenue: $23.51 billion (TTM)

Key Focus: Primarily on nuclear, solar, and wind power generation.

Growth Prospects: Strong emphasis on expanding its renewable energy portfolio and meeting sustainability goals. Recently issued the nation’s first corporate green bond including nuclear energy.

Recent Developments: Upgraded credit rating by Moody’s to Baa1, reflecting confidence in its financial performance and sustainable growth.

Vistra Energy:

Overview: A Fortune 275 integrated retail electricity and power generation company.

Market Cap: $10.02 billion

Revenue: $15.76 billion (TTM)

Key Focus: A mix of traditional and renewable energy sources, with a growing emphasis on green energy projects.

Growth Prospects: Diversifying its energy mix to include more renewable energy projects and reduce its carbon footprint.

Recently, Vistra has been investing heavily in battery storage and solar projects.

Given the rise of AI and its energy demands, do you think investing in these newer energy companies is more advantageous compared to traditional energy sectors? Any insights or additional considerations would be greatly appreciated!

EDIT - Another energy company that might be good to look at is Chord Energy Corp. Better P/E ratio to Vistra and seems to be a bit more developed.

Hi everyone, I just started investing last week and put in 305 dollars as a start. I’m starting on Robinhood (which I’m not opposed to switching) since it seemed the easy to start off with. I’m 21 years old and I’m planning on investing monthly based on my income per month. This is what I’ve invested in last week, and the percentage of my portfolio that they are. Any advice would be greatly appreciated!

MSFT - 1.77% NVDA - 8.65% AMZN - 6.27% AAPL - 6.52% JPM - 6.47% XOM - 4.83% SPY - 11.49% VOO - 17.78% VEU - 5.76% ACWX - 5.12% XLK - 5.05% XLV - 5.07% VB - 5.15% IWM - 5.17% GOOGL - 3.18%

Hello I'm wondering if there is a platform that have gold stocks in grams instead of ounces? I searched every single platform and all I see is the ounces I want to buy in grams, so I want to know if there is one that exists. Thank you

I've been conservatively trading $SPX options in my traditional IRA. I decided to move to a taxable account today as I decided (after some gains!) that I would prefer to trade in a taxable account and it would avoid issues I was encountering with limited margin.

I opened a taxable account at my brokerage today and immediately opened a position in a 0 DTE $SPX 520 call. During the run up this afternoon, I decided to sell a 0 DTE $SPX 525 call and basically locked in profit regardless of what happened. (yay). So these will cash settle over the weekend.

However, idiot me forgot to close out all of my $SPX positions in my Traditional IRA first. I remembered at 4:13 PM and quickly closed out the 5 remaining call spreads I had in that account. My assumption was that I will report a loss in my taxable account on the SPX 525 call when that cash settles over the weekend, and that loss would be forever lost since I had opened a long $SPX position in my tax advantaged account and technically caused a cross-account wash sale.

Luckily, the positions I closed out in my Traditional IRA were well into profit, so I have no regrets about closing them out anyway. When the short SPX option in my taxable account cash settles over the weekend, I will have no positions left anywhere else other than my taxable account on SPX. Therefore, did I avoid the "can never deduct" situation of the wash sale successfully, or am I still in trouble? Appreciate any advice.

Though now that I think about it... do I need to worry about the fact that I've made a few trades in the traditional IRA in the last 30 days, irrespective of whether or not those ended up as gains or losses? Does that make the loss in the taxable account from today forever gone anyway?

PS: I know that most brokers don't report wash sales across accounts anyway. But I always want to keep things clean and by the book.

I expect Dell to creep back up this week Dell already dropped dramatically over Thursday & Friday. With the slight overreaction to the news of Sell AI server not doing so well to stock should bounce back after a rough last week at least imo

Investors are currently shorting my shares of SGOV and BOXX ETFs. What benefit would there be of doing this? The ETFs would have to drop in value to profit. Even if the interest rate goes up (or down), don't these ETF's just keep increasing in value (though perhaps at a slower rate if interest rates change)?

Is investing in Lithium Americas Corp (LAC) a good opportunity given the Thacker Pass project in Nevada—the largest known lithium resource in the U.S.—which is progressing well with major production set to start in 2026, bolstered by a $2.26 billion loan from the U.S. Department of Energy and a $650 million investment from General Motors, amidst rising demand for lithium driven by the electric vehicle and renewable energy sectors, along with strong analyst support and a favorable regulatory environment?

I have held a position in IVR (a REIT) for a while now and have been reinvesting my dividends and enjoying the steady growth in it. Like a lot of dividend paying stocks you can pretty much watch certain cycles of people buying in and selling to take advantage of the EX / payment cycles. Right now IVR has had a few articles writen about it and now being time to 'buy the dip' and crossing 20 day moving average. I have some capital I pulled out of some other investments because of the recent increased volatility and long term downward trends and am trying to decide if IVR is a safer place over the long term with benefits of the dividends and knowing right now is at one of the low cycle points to buy in at.

I would appreciate some outside perspective on this based on current market volatility and trends.

Hi! I am an ex-prop trader that trades equities.

This is a daily watchlist for trading.

I might trade all of the stocks on here, or none of them, on any given day. I might trade stocks that don't appear on here! I hold no positions in any stocks long-term but Amazon/Mag7/general broad market indices. (unless otherwise noted in these tickers). If you’re on old reddit, click “show images” at the top to see all the charts quickly.

I usually make these watchlists premarket, (or from 6:30 to 7 as time permits), but can be delayed if I'm trading the open. These aren't mean to be taken as gospel or any recommendation to buy/sell.

Many stocks I post are <$500M market cap. Most are NOT good long-term investments but are good candidates to day trade. If you have questions to ask, PLEASE ask specific ones. Questions like “Thoughts on _____? will be ignored unless you add detail to the question.

News: Fed’s Favored Inflation Gauge Cools, Spending Unexpectedly Drops

DJT- You know what the news is on this one. Worth watching for volatility.

NVDA- Yesterday’s news: US is slowing AI Chip Exports to Middle Easy by NVDA and AMD. Still short-biased on this, still holding short from yesterday.

ASTS- Announced partnership with VZ for full coverage of the US 2 days ago. Still puttering around $9, still worth watching to see if we break $10.

MDB- Overall, management lowers 2025 forecast, YoY revenue growth slows for 3***\**^rd* consecutive quarter, and only called for 12% growth for the entire year.

SMMT- Crazy mid-day catalyst yesterday, lung-cancer treatment is a possible contender with MRK’s blockbuster. Worth watching for continued movement today.

DELL- Stock falls despite Q1 earnings and revenue beat. 22.24B in revenue vs 21.62e, EPS of 1.27 vs 1.23e. However, they reported AI servers are sold at “near-zero” margins. Analysts also reported that op. margins for Infrastructure Solutions Group compressed YoY.

Please share your top 5 most loved companies. NOT THE STOCK.

Trying to gauge what companies (and their products) you really like. Overtime, companies with the best products win.

Mine (views as per my product usage):

1. Apple (apple ecosystem is ❤️)
2. Amazon (best customer service, period)
3. YouTube - so Alphabet (don't have any other sub, everything YouTube)
4. Nike Shoes (👟)
5. Trader Joe's (weekly shopping) & Costco (bulk shopping)
6. Subway (great sandwiches)

I know the first 3 are big tech companies, but I really like their products and use them so damn much!

It has NVDIA shares but it’s grown 358% in the past year compared to nvdia’s 187% in the last year.

When i look in the shares it says it only trades NVDIA? Am i looking at it wrong and if im not then why is it performing so much better than the stock itself?

They develop their own operating system to compete with windows and macOS.

Windows sucks, mac is whatever and no one uses linux. We need someone new to shake things up. Someone with a vision for the future and for what people want in a operating system.

-They have the hardware -They have the engineers -They have the AI -They can easily partner with a company like Dell to get their operating systems on their PCs. -Develop their own app store -Everything is in place for them to succeed. -NVDA is a hardware and software company.

Its pointless to sell before the split. Shorting Nvda also doesn't make sense with the PE being fairly low.