Price is up not because of old news, but the suspicion that there is news that the average investor does not have access to. Note that yesterday's volume was about average. Movement in share price always gets attention and brings in those who figure to make money on a near-term long or short position.
Good company, but how much do you want to pay for a company that doesn't move money to the bottom line? Sorry, but growth without profit is fine for a start-up, but CRM is well past that stage..
That is remarkable, until you look at TSLA and see that they traded just as many shares for the day at a price 30X higher. ARIA is trading about 10% of the float; TSLA is trading 20% of its float.
Thanks. I was wondering about the cause of the the sudden interest. Is this a well place, self-serving rumor, or do you think there's something to it?
Broke 23 just recently. Didn't hold and those who thought they had bought on the upswing off the bottom were punished. I think we'll see 23 are resistance as these same buyers sell to break even.
Let's face it. They are getting free advertising on CNBC all day long. How many times are they going to mention the same story? This will continue until there is some other business or political story that makes TSLA's wonderful plans second page news.
Logical investing doesn't always work. You have to assume that other investors are logical as well and when a company is a celebrity, logic is irrelevant. We've seen this pattern with AAPL, FB, AMZN and others. In time, the momo-celebrity investors will tire of a company (like AAPL or MSFT) and logical investors can get back to fundamentals.
CLF has traded in a 66 cent range today. At this point, it is up about half of that range. Note that on previous days it closed near the bottom of its range. For us to see a multi-day gain, it is going to have to close much closer to the high for the day.
Of course who cares about a multi-day gain? Day traders are already in and out.
If you think this is good news for investors, how do you think the employees in upper Michigan are feeling? Going from possible closure to at least 2 more years of operation must be cause for celebration.
I did a quick search of lithium suppliers and while there quite a few of them, lithium mining is a small part of their total operations. Many of the companies are only traded on foreign exchanges. The US traded companies are: SQM, FMC, ROC, WLCDF. That doesn't mean they are all US companies. SQM is headquartered in Chile and WLCDF is out of Vancouver, B.C. (though its operations are in Nevada.)
If the battery factory produces as many batteries as they project, you'd think that the lithium miners would benefit as well. Unfortunately, there are no pure plays.
Why will the cost of batteries go down? The price of oil has gone up even though the process for extracting it is more efficient than ever. Because batteries use a relative rare earth element, I'm not sure of how cost can be reduced as demand increases.
Lots of folks talk about $1 per user revenue as 100% gross profit. Yet clearly it isn't. Anyone have an estimate of what the gross margin on $1 of annual revenue might be? If it is 50% and there are 1 billion paying users, that's $500 million in gross profit per year. Nice, but does it justify the $19B price?
Excellent points. However it is easier and more cost efficient to manage carbon emissions in a power plant than in individual autos.
My concern with this increase in lithium battery production is the supply of lithium. While there is enough now, increasing supply to meet the demand of this single TESLA factory, not to mention all the other uses of lithium batteries, will be a challenge. The mining of lithium could be an environmental issue, just as oil sands, coal, and fracking are considered environmentally damaging right now.
I don't think staffing the factory will be a problem. I do wonder where they are going to get enough lithium to meet demand. Remember, TSLA's success invites competitors who also will need lithium to make their batteries. If TSLA is going to make a profit, the lithium suppliers will also be very successful.
It would seem that the smart play has been to short CLF and go long almost anything else. On up market days, CLF trails the pack. On down days, it leads.
Please note that if I can figure this out, everyone else figured out some time ago.