+$1500

tpltblogger10 Comments

Is the S&P500 around the corner waiting to scoop us up?

If so, I’d suggest the use of the remaining authorization to split the shares. Make liquidity a bit better and the bite size a bit smaller for current and future investors.

On another note, what we are seeing with MSTR is that they are being rewarded (probably excessively so) for selling marginal shares and putting an asset on their balance sheet (100% marginal Bitcoin) that is better than than their current assets (watered down Bitcoin). This strategy is great for the shareholders. But not so great for the new shareholders who get a diluted version of Bitcoin.

My view on TPL is that the marginal asset available for purchase is almost always WORSE (value per $$) than the existing assets. Who would be selling good inflation protection assets with this macro backdrop? TPL issuing shares would be the opposite of MSTR doing it. The market would not reward the trade.

I’m beating a dead horse here but I’m getting worried that the crew is getting antsy to hit a bid on shares.

Don’t do it! Stay on the course and stay on the rocket ship. Split and buyback. Rinse repeat. It’s a low cost, proven strategy. Margin expansion and equity footprint contraction will get you to the c-suite hall of fame. And if you really want to make a splash, get on podcasts and talk about this capital strategy. Maximize equity per share, not total assets.

10 thoughts on “+$1500”

  5. TPLBlogger you and I were discussing adding BTC to the balance sheet back in 2022 when they signed the deal with Mawson. Just take royalties in BTC and hold it as treasury… can you imagine if they listened?!

    What Saylor is doing with the convertibles is mind boggling… there is a fantastic podcast on the topic which is worth a listen.

    https://x.com/PunterJeff/status/1859372022796779646

    Liked by 1 person

  8. Texas Pacific Land Set to Join S&P 500, Mueller Industries to Join S&P MidCap 400 and Atlas Energy Solutions to Join S&P SmallCap 600

    PR Newswire

    NEW YORK, Nov. 21, 2024

    NEW YORK, Nov. 21, 2024 /PRNewswire/ — S&P MidCap 400 constituent Texas Pacific Land Corp. (NYSE: TPL) will replace Marathon Oil Corp. (NYSE: MRO) in the S&P 500, S&P SmallCap 600 constituent Mueller Industries Inc. (NYSE: MLI) will replace Texas Pacific Land in the S&P MidCap 400, and Atlas Energy Solutions Inc. (NYSE: AESI) will replace Mueller Industries in the S&P SmallCap 600 effective prior to the opening of trading on Tuesday, November 26. S&P 500 & 100 constituent ConocoPhillips (NYSE: COP) is acquiring Marathon Oil in a deal expected to close November 22, pending final closing conditions. Texas Pacific Land and Mueller Industries have company level market capitalizations that are more representative of the large-cap and mid-cap market space, respectively.

    Following is a summary of the changes that will take place prior to the open of trading on the effective date:

    Effective Date Index Name Action Company Name Ticker GICS Sector ————– ————— ——– ————– —— ———– November 26, S&P 500 Addition Texas Pacific TPL Energy 2024 Land ————– ————— ——– ————– —— ———– November 26, S&P 500 Deletion Marathon Oil MRO Energy 2024 ————– ————— ——– ————– —— ———– November 26, S&P MidCap 400 Addition Mueller MLI Industrials 2024 Industries ————– ————— ——– ————– —— ———– November 26, S&P MidCap 400 Deletion Texas Pacific TPL Energy 2024 Land ————– ————— ——– ————– —— ———– November 26, S&P SmallCap Addition Atlas Energy AESI Energy 2024 600 Solutions ————– ————— ——– ————– —— ———– November 26, S&P SmallCap Deletion Mueller MLI Industrials 2024 600 Industries ————– ————— ——– ————– —— ———–

    For more information about S&P Dow Jones Indices, please visit http://www.spdji.com

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  9. So, we will see selling TPL stock by the Funds that follow the S&P midcap 400, and buying by the funds that follow the S&P 500 in the near future, and all the short sellers of TPL jumping out of windows [Grin]. I think I will cancel my trailing stop.

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