Since you were an employee, can you give us more color on why you like the company. e.g.-good products? Can you elaborate? How about marketing/sales? Is it an uphill baattle since potential customers currently on another platform and hard to get them to switch? Thanking you in advance.
It never ceases to amaze me how people who do not understand basic accounting/finance think that the valuation of a stock equates to "cash" on the balance sheet.
Indeed, Tesla's cash (as clearly exhibited on their quarterly published balance sheet) from operating activities continues to decline each quarter. This company (similar to the amazingly overvalued Netflix) is burning cash at an alarming rate. The only reason cash now stands (as of 6/30/13) at $764mm is that they raised $660mm in debt during the quarter.
This is a company with a limited market so far (California), and will see awesome competition for the mass market EVs from Nissan, BMW, etc. How many people can afford the "S"? Not many. Only people lucky enough to ride this tulip bubble up who sell before the music stops in this game of musical chairs, as well as the 5% of the population.
What is the service track record of the cars? This is so critically important since no one knows. If the "S" starts to have service issues (from minor bugaboos to more serious issues), or God forbid serious safety issues in a collision caused by design flaws, this stock will drop dramatically.
Remember what Warren Buffett said: "In the short run the market (for any asset) is a voting machine, but in the long run it's a weighing machine". Where's the beef? Where's the beef? With the test of time Tesla may become a profitable niche player in the worldwide automotive market. But a $20 billion dollar market valuation is absurd, and most attributed to the tulip seekers who haven't a clue about terms like "operating cashflow".
God help our country when people who haven't a clue about how to value a company continue to make a quick buck.
In my 35 years on Wall St, I have never seen such insanity and market manipulation then in these two stock: NFLX and TSLA. My Harvard MBA means nothing. LMFAO
Thanks for sharing that. We'll be back at $20 very soon IMHO.
Sentiment: Strong Buy
If you can verify what you have written, this stock will easily double from current levels. Your scenario sounds plausible. Is your scenario "blue sky", or do you have direct verification of what you have written? I hope so, because I am long. Why would GS commit to a corporate deal if it was a fraud. Believe me, post 2008 they do not need any bad press, so especially with a "controversial" company, my guess is that GS was especially diligent with their analysis. Remember also that Credit Suisse committed to financing, and they were obliged to undertake independent due-diligence.
Sentiment: Strong Buy
You are one smart guy. To all reading this, please recommend this post by checking the thumbs up. This will show hockeyplyr we want him to write an article, however short and sweet to countermand the Gotham ineptitude.
Please consider writing that article. I'm a retired investment banker (MBA top school, Yada yada), and will help you edit, etc. islandtefl1 at yah
Your insights are brilliant. If you are reading this and agree, recommend the post and give him the support to write an article!
That may be the case, but NFLX does not own/control the pipes (bandwidth). Also there are no barriers to entry, and NFLX has no moat. Also, did you ever hear of Amazon, Comcast, and Dish (Blockbuster), Coinstar ?.
Stop the circle jerk..both of you. Who knows when it will hit $135. It should hit that level and much lower, but who knows when. If Icahn reports a position under the 5%SEC reporting requirement, this may be a catalyst. again, it's anyone's guess.