Agreed, two of the biggest bubbles going are FB (valued at sales x 18) and CRM (sales x 9) but oh wait...
WDAY (sales x 40) - they should change the ticker from WDAY to CRAZY
Way overvalued, agreed here but difficult to short so you only have the options market. Puts here are expensive as lots of people believe the stock is due for a strong correction.
You probably have to be brave and buy puts expiring in the near future. Earnings next week, could be a catalyst for that correction! TRIP just fell $12 from a recent high and that's also way overvalued. Look for WDAY to trade down about $10 - 12 next week after earnings.
Buy rating from them is meaningless, maybe they want to dump their stock
Crazy valuation, pendulum has swung to the other side
All these lonely losers that don't want to pay to keep in touch with a whole bunch of other lonely losers
Over a billion of them though, that's a lot of lonely losers
Downgrades coming thick and fast after these horrible earnings
In a best scenario, analyst Patrick Archambault of Goldman Sachs thinks Tesla (Nasdaq: TSLA) stock is worth $120. In the worst scenario, he thinks the stock is only worth $58.
"We now value Tesla by taking the average of 3 scenarios. In the first scenario, we assume total sales of 105K (Model S: 50K units, Next Gen: 55K) and operating margins of 14.6% implying an EPS of $5.99. Layering on a 20x multiple given the growth prospects implies a value of $120 which discounted at 20% implies a stock price of $58," said Archambault.
Finally, Archambaul looked at the mid-case scenario.
"In a mid-case where we assume volumes of 150K units and operating margins of 14.8% which is broadly the mid-point of the two scenarios. The implied price in this scenario is $83. Finally, we take the average of these three scenarios to get our target price of $84," he concluded.
Goldman Sachs has a Neutral rating on Tesla Motors (NASDAQ: TSLA) with modified price target to $84.00 (from $61.00)
it went up another .5 billion today
That's another 5,000 cars at 100,000 - more than they sold in the whole quarter
This is MADNESS or MADOFF-NESS - not sure which
Chewy, you have this one right and I believe this will probably hit $50 next year.
It will blow up some day soon, the question is when. The earnings should suck, agreed, but this looks like more of a technical short squeeze top and as such really needs some opposite momentum. Poor earnings will help for sure and also poor guidance would help.
Here are Ferrari's numbers - .....it's parent company is worth less than half of Tesla
A total of 7,318 Ferrari roadcars were delivered to the dealership network in 2012 (+4.5 per cent on 2011), while revenues of 2.433 billion euro (up 8 per cent) were recorded. Trading profit jumped by 12.1 per cent to 350 million euro, with net profits coming in at just under 244 million euro (+17.8 per cent) and ROS (Return on Sales) of 14.4 per cent which is very much on a par with the top companies in the luxury sector.
Ferrari is a legendary car, also with a cult following. Let's give it a PE of 14 (I'm feeling generous) and it's nearly worth 1/4 of Tesla (at best) on current Market Cap. Should be the other way around...just saying
Tesla has a market cap that is double that of FIAT
FIAT owns Ferrari - nice little car
So if you value FIAT (exclude Ferrari) at exactly nothing, would you take a Ferrari or a Tesla?
go figure, so on that recommendation I just bought some puts
I understand it can take months for stocks to bottom and I sure can't pick the bottom. The point I was making was that when you see a fall of this magnitude - over 50% in a few days - you can frequently see a sharp rebound when the initial wave of selling / shorting hysteria is over. Can if fall further? Absolutely. Can it get back to $10 - 15? Sure. There should be a strong rebound in the next few weeks but whether it can sustain that rebound is another question. Hence the option market being the better approach to enter this trade. The complication of the investigation means that the options shouldn't have a near term expiry.
I agree with the 3 day rule - in fact it can be anything from 2 to 7 but 3 to 4 is normally pretty accurate when dealing with a massive fall as we saw. When stocks fall big, like EBIX, a lot of coat tailing happens and many shorts just follow blindly, go with the herd so to speak. As such, when the turn happens, it can jump 10 or 20% in a couple of sessions as late to the party shorts get spooked. Of course it very rarely retraces to where it was and I don't expect that to happen here. I do think it's wise to open a long position here, ideally through the options market with enough of a window to get some of this #$%$ resolved. Of course, if a merger gets back on the table then of course it can retrace, but even without a merger there is room to go quite a bit north.