​Here’s an idea for a high school project that could be implemented anywhere in the country with this as a simple blueprint. This may already be something teachers and schools are implementing in some places; if that’s the case then more power to them. If not, then maybe this could serve as a starting point. Students could pair up or this could be an individual project.
 
Choose a publicly traded company. Perhaps the teacher compiles a list of some of the most obvious suspects to make it easy. Perhaps I could even provide the teacher with such a list. Using that company’s investor relations page as well as EDGAR for SEC filings (as well as any other Google research the student may like to incorporate), have the student produce a bull or bear case for that company’s stock based on their research. The student must at least use the company’s investor relations page and EDGAR and source information from both. The presentation should consist of no more than 8 slides and focus on the following:

• What does this company do?
• How does this company make money?
• Who is leading this company?
• What kind of market opportunity does this company have?
• What kind of competitive advantage (if any) does this company have?
• Are there switching costs?
• Are there barriers to entry?
• Is there pricing power?
• Run this business through the Porter’s Five Forces model.
• Is this company in good financial shape? Why or why not?
• Do you think this would be a good or bad investment? Why or why not?

 
For this exercise we will assume the company is fairly valued by the market today. There is no need to go into the weeds on valuation work as it is nuanced and subjective and not the ultimate point of the exercise. There are lessons from this exercise that extend well beyond investing including:

• Learning about business;
• Learning basic financial concepts and measures;
• Evaluating leadership;
• Learning about competitive forces within a given market;
• Public speaking skills;
• Assembling a concise and clear presentation;
• Building research skills.

 
After all is said and done all of the decisions can be tracked based on the call for whatever period of time makes sense. Perhaps a full year or even more based on what year the students are when they do the project. The bottom line is this is real life stuff that could serve as a way to teach students a multitude of real-life concepts that they will more than likely encounter as they grow older. And of course, maybe it results in a few more investors along the way.
 
Keep calm, Fool on and hit ‘em with the Hein.

If Twitter is indeed looking to sell (and it sounds like it is) I’d be surprised to see a situation where “nobody out there wants it.” Twitter the platform isn’t going away; it’s too important. You know that as well as I. There are businesses out there that covet its value; it all just boils down to how much they want to pay for it.

This is a tough situation for investors no doubt. Whatever you decide to do, don’t let your emotions make your decision. It’s just no way to invest. And to be clear, I’m checking myself on that same front all the time, especially today where headlines are telling us that all hope is gone.

I’ve been as big a Twitter advocate from the investor’s perspective as anyone. I love the platform and all of its potential. But it’s not been a good investment. Some of you have asked what action I’m taking, if any. I own Twitter shares and my cost basis is $23 per share. I imagine my perspective is quite different from someone who has a cost basis of $45, but that’s investing and we all know price always matters. Much as it matters to any potential suitors. I have no intentions of selling any shares. I don’t need the money right now and I’ve consistently said that the 3rd and 4th quarters of this year would tell me all I need to know about where this business was headed. Either the live streaming initiative helps lead the way forward or it doesn’t.

Based on what we’ve heard it sounds like management would like to have a deal done by the time they announce results toward the end of this month, but who knows. I certainly don’t; I’m only going on what I’ve read. And if for some reason all of this acquisition talk turns out to be a total sham, well then I’ll reassess. But I’ll likely stick with my initial plan of giving the business the final two quarters of the year to see how it has been able to take advantage of the opportunities 2016 has presented.

Keep calm and hit ‘em with the Hein.
​
JMo

​I’m starting to think I may have gotten this one wrong:

In all seriousness, it looks like I may ultimately be wrong on the timing here. In my defense, the logic made sense on the surface. If they really do have something good with the GoLive initiative it would make sense to want to see how those numbers shake out over the coming couple of quarters. But if it's a couple of things I've learned in life, we all get things wrong and I don't like people who can't embrace their mistakes. It's funny too that if Twitter is ultimately acquired I will likely make money on the deal yet I feel like I got this one wrong.

My investment thesis in Twitter has always revolved around three notions: It's an important network that has proven to be extremely difficult to replicate. Either they get it figured out under Costolo’s watch, they get it figured out under a new CEO’s watch, or they are acquired. Pretty simple. I’ve never suggested (nor do I suggest) one make acquisition the cornerstone of any thesis. It’s a bailout in some cases. You know it’s likely the worst-case scenario based on some competitive advantage so then it’s just a matter of price. And price always matters. Some reading this bought Twitter at $50 and are pissed. Others have a far lower cost basis and therefore likely have a more positive take on things. I fall in the latter and I hope you do too.
​
It seems like there’s a lot of silly back and forth on the number for any potential Twitter bid. We’ll know if and when we know and I’ll stick with what I’ve said here:

Just remember, any serious bidders are considering it based on what they think they can do with Twitter going forward; not what you think the company is worth today based on its past transgressions. And chances are pretty, pretty, pretty good that any serious bidders are a hell of a lot smarter than you or I.