Yes you are right. Nobody wanted to pay more than the after price since it came public. Today was just a day to put the stock in play and scam more bagholders so insiders can continue to dump as much as they can.
This is a $30 stock right now. That is why they priced the IPO at $25. Come on folks. If it goes above $43 will start shorting alot.
When the shares rise 50% over the ipo price ($25) and you still buy you are most likely going to lose money. The Analysts said it was worth $25. The 34 million shares sold by existing shareholders thought those were good sales.
Who do you think sold in the IPO. Most of the sellers were from the owners not the company at under $25 after underwriter discount.
The reality is that this was one of the most expensive IPOs of the year at $25. And now at $38 its really dumb. Just another COUP at $30 and LOCO at $40.
It is most expensive stock in the entire market. Insiders dumped $600 million or whatever at $24/share. So just jump right in and pay another 60% up. Makes sense. LOL. Its a $20's name. Not 40's.
Its really the dumbest stock i've seen. $10 billion. ROFL.
To earn more than $9 they will need to sell million cars and that takes plants and distribution channel that they don't have. I mean they have assets under $1 billion. Versus $30 billion for their compeitiotrs. At this point TSLA should get a discount valuation i think. $180 3 years out discounted back 3 years at 10% is $132/share today. Thats about all this company is worth IMHO.
GM F C BMW have a combined shareholders equity of 200 billion. These companies can put TSLA out of business if they want too. And they probably will. TSLA must issue stock very soon. Market cap assumines 500,000 per year unit sales. But how do they build all these cars with out plants ect.
maybe when they open 100 new stores it will be worth $35. But not now.
Its not worth $30 thats why insiders diluted themselves 29% at $13.95 2 weeks ago.
.17 cents with zero tax rate. With a proforma 35% tax rate they only made 14 cents a share. They will need to add 50-100 restruratunts before theycan make $1 in a year after tax. and CMG only trading at 50 times 2014 estimates. LOCO is 40% more expensive than CMG already.
Management/Insiders thought this was a wise thing to do. Thus clearly everyone buying over $28 is likely a bag holder.
LOCO earned 19 cents last quarter. But look at the tax rate. It was negative. You have to use a standard 35% tax rate. that puts earnings at just 13 cents or about $.52/share per year. so the stock is already near 80 times earnings. Versus CMG at 50 times 2014 eps estimates. Also look at the cash. CMG is debt free with billion in cash. LOCO has debt and no cash. Then look at the growth rate. LOCO grew 5% over last year. CMG 35%
Management/Insiders thought it wise to dilute 29% at a proceeds price of $13.95/share 2 weeks ago!!! This is all you need to know.
Except Cramer didnt check and see that LOCO earned 19 cents in q1 but with a zero tax rate. The market is going to look at what earnings would be at a normalized 35% tax rate. So earning $1/share is still many years out of LOCO. LOCO there fore is trading at a higher multiple than CMG already. Its garbage.
back to 30.
Cramer took everyone to the woodshed. Now Cramer says sell.
you can make a case for $20 or $25 but not above $30.