TABLEAU SOFTWARE STOCK ANALYSIS: Acquisition by SALESFORCE
If data is the new $gold, then Tableau is a gold miner. Tableau is a software company focused on business intelligence, that is, they help customers gather and handle data about their business. For example, if you have a business and you're selling a product online. Now you want to build a map to visualize where are your customers located, you can do this through the products of Tableau. In short, they do the same business that Cambridge Analytica were doing gathering data on electors through their $FB accounts but $DATA gather business data. Some of the customers of $DATA include $JPM $CMG $WFC $PEP $VZ .
If we look at how the company has been growing over the last 5 years, their revenues have been growing on average by 24% p.a but they are losing money and that's mainly because they are spending much money on marketing their products. There are many businesses which require the services of Tableau but they don't know about it yet. However, this problem will be soon solved as Tableau is being acquired by $CRM in an all-stock transaction. I already explained to you two days ago how $CRM and even $AMZN and $TSLA issue stocks to pay employees and buy other companies. In the case of $CRM, this acquisition will help them maintain their lead in cloud CRM(customer relationship management)
Can you make money from this by arbitrage?
1. First you need to borrow the shares of $CRM and sell them on the open market (shorting)
2. Then, buy shares of $DATA
3. Wait for the shares of $DATA to be converted into shares of $CRM (1:1.103 ratio)
4. Return the shares that you borrowed, pay the fees and take your profit from the difference
It is not the simple type of arbitrage merger deals I usually do and I don't think it will be worth it with the scale of my investments. But I may buy shares of $DATA in the future if I see that there is a large enough spread in comparison to 1.103 shares of $CRM
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